In the latest trading session, BorgWarner (BWA) closed at $40.37, marking a -0.79% move from the previous day. This move lagged the S&P 500’s daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.
Heading into today, shares of the auto parts supplier had lost 0.15% over the past month, lagging the Auto-Tires-Trucks sector’s gain of 2.1% and outpacing the S&P 500’s loss of 2.86% 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. On that day, BorgWarner is projected to report earnings of $0.89 per share, which would represent 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.
It is also important to note the 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BorgWarner is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.84 right now. For comparison, its industry has an average Forward P/E of 14.69, which means BorgWarner is trading at a discount to the group.
We can also see that BWA currently has a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Automotive – Original Equipment industry currently had an average PEG ratio of 0.73 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 77, which puts it in the top 31% 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