BorgWarner (BWA) closed the most recent trading day at $39.75, moving -1.85% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Coming into today, shares of the auto parts supplier had lost 4.32% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.08%, while the S&P 500 lost 0.12%.
Investors will be hoping for strength from BorgWarner as it approaches its next earnings release. The company is expected to report EPS of $0.89, down 28.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.73 billion, down 8.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.76 per share and revenue of $15.22 billion. These totals would mark changes of -18.26% and -3.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. BorgWarner is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.78 right now. Its industry sports an average Forward P/E of 15.36, so we one might conclude that BorgWarner is trading at a discount comparatively.
We can also see that BWA currently has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. BWA’s industry had an average PEG ratio of 0.74 as of yesterday’s close.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report