The most recent trading session ended with BorgWarner (BWA) standing at $34.48, reflecting a +1.71% shift from the previouse trading day’s closing. The stock exceeded the S&P 500, which registered a gain of 1.25% for the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 1.3%.
Coming into today, shares of the auto parts supplier had lost 0.38% in the past month. In that same time, the Auto-Tires-Trucks sector lost 11.14%, while the S&P 500 gained 1.58%.
Investors will be eagerly watching for the performance of BorgWarner in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on February 8, 2024. The company is expected to report EPS of $0.93, down 26.19% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.61 billion, indicating a 12.13% decline compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BorgWarner. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% higher. BorgWarner is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, BorgWarner is currently being traded at a Forward P/E ratio of 8.01. This represents a discount compared to its industry’s average Forward P/E of 11.47.
One should further note that BWA currently holds a PEG ratio of 0.91. 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 was holding an average PEG ratio of 0.68 at yesterday’s closing price.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
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.
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