BorgWarner (BWA) closed at $40.76 in the latest trading session, marking a +1.65% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.23%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the auto parts supplier had gained 1.03% over the past month, lagging the Auto-Tires-Trucks sector’s gain of 6.22% and outpacing the S&P 500’s loss of 1.43% in that time.
Wall Street will be looking for positivity from BorgWarner as it approaches its next earnings report date. This is expected to be November 2, 2023. In that report, analysts expect BorgWarner to post earnings of $0.89 per share. This would mark a year-over-year decline of 28.23%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, down 8.11% from the year-ago period.
BWA’s full-year Zacks Consensus Estimates are calling for earnings of $3.76 per share and revenue of $15.22 billion. These results would represent year-over-year changes of -18.26% and -3.65%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BorgWarner is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, BorgWarner is holding a Forward P/E ratio of 10.68. For comparison, its industry has an average Forward P/E of 14.71, which means BorgWarner is trading at a discount to the group.
Also, we should mention that BWA has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Automotive – Original Equipment industry currently had an average PEG ratio of 0.68 as of yesterday’s close.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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