BorgWarner (BWA) closed at $34.14 in the latest trading session, marking a +1.04% move from the prior day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.07%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.36%.
Shares of the auto parts supplier have depreciated by 6.11% over the course of the past month, outperforming the Auto-Tires-Trucks sector’s loss of 12.12% and lagging the S&P 500’s gain of 3.05%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is scheduled to release its earnings on February 8, 2024. On that day, BorgWarner is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 26.98%. Meanwhile, our latest consensus estimate is calling for revenue of $3.59 billion, down 12.61% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for BorgWarner. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 has shifted 1.58% upward. At present, BorgWarner boasts a Zacks Rank of #3 (Hold).
Looking at valuation, BorgWarner is presently trading at a Forward P/E ratio of 7.94. This expresses a discount compared to the average Forward P/E of 11.51 of its industry.
It’s also important to note that BWA currently trades at a PEG ratio of 0.91. 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. The Automotive – Original Equipment industry had an average PEG ratio of 0.69 as trading concluded yesterday.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report