Here's Why BorgWarner (BWA) Fell More Than Broader Market
In the latest trading session, BorgWarner (BWA) closed at $32.71, marking a -1.21% move from the previous day. This change lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the auto parts supplier had lost 6.36% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 4.92% and the S&P 500's gain of 1.2% in that time.
Market participants will be closely following the financial results of BorgWarner in its upcoming release. The company plans to announce its earnings on February 8, 2024. The company's upcoming EPS is projected at $0.87, signifying a 30.95% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.57 billion, down 13.07% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. BorgWarner presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, BorgWarner is currently exchanging hands at a Forward P/E ratio of 7.86. This signifies a discount in comparison to the average Forward P/E of 11.03 for its industry.
We can additionally observe that BWA currently boasts a PEG ratio of 0.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.68.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report
