Why BorgWarner (BWA) Outpaced the Stock Market Today
The latest trading session saw BorgWarner (BWA) ending at $39.97, denoting a +0.53% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.71%.
Shares of the auto parts supplier have depreciated by 3.82% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 4.16% and the S&P 500's loss of 2.1%.
Analysts and investors alike will be keeping a close eye on the performance of BorgWarner in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. The company's upcoming EPS is projected at $0.89, signifying a 28.23% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.71 billion, reflecting an 8.52% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.76 per share and a revenue of $15.17 billion, demonstrating changes of -18.26% and -3.96%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BorgWarner is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, BorgWarner is currently being traded at a Forward P/E ratio of 10.59. This denotes a discount relative to the industry's average Forward P/E of 13.57.
Also, we should mention that BWA has a PEG ratio of 0.89. 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 the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.71.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BorgWarner Inc. (BWA) : Free Stock Analysis Report
