In the latest market close, BorgWarner (BWA) reached $34.31, with a +0.82% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.34%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.
Shares of the auto parts supplier witnessed a gain of 3.97% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 0.24% and the S&P 500’s gain of 2.56%.
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 February 8, 2024. It is anticipated that the company will report an EPS of $0.88, marking a 30.16% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.6 billion, indicating a 12.31% decrease compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BorgWarner. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BorgWarner presently features a Zacks Rank of #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 8.13. Its industry sports an average Forward P/E of 11.44, so one might conclude that BorgWarner is trading at a discount comparatively.
We can additionally observe that BWA currently boasts a PEG ratio of 1.02. 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 0.67 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 93, which puts it in the top 37% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report