BorgWarner (BWA) ended the recent trading session at $35.99, demonstrating a +0.42% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.
Prior to today’s trading, shares of the auto parts supplier had gained 4.92% over the past month. This has lagged the Auto-Tires-Trucks sector’s gain of 7.45% and the S&P 500’s gain of 5.28% in that time.
Investors will be eagerly watching for the performance of BorgWarner in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.88, showcasing a 30.16% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.6 billion, indicating a 12.31% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.74 per share and a revenue of $14.59 billion, indicating changes of -18.7% and -7.65%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for BorgWarner. These revisions help to show the ever-changing nature of near-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. BorgWarner currently has a Zacks Rank of #3 (Hold).
Looking at valuation, BorgWarner is presently trading at a Forward P/E ratio of 9.58. This signifies a discount in comparison to the average Forward P/E of 13.86 for its industry.
Investors should also note that BWA has a PEG ratio of 1.21 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. BWA’s industry had an average PEG ratio of 0.66 as of yesterday’s close.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 145, positioning it in the bottom 43% of all 250+ industries.
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.
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