The latest trading session saw BorgWarner (BWA) ending at $32.03, denoting a -1.36% adjustment from its last day’s close. This change lagged the S&P 500’s 0.29% loss on the day. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
The auto parts supplier’s stock has climbed by 4.27% in the past month, exceeding the Auto-Tires-Trucks sector’s gain of 0.09% and lagging the S&P 500’s gain of 4.42%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is expected to report EPS of $0.88, down 19.27% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.54 billion, indicating a 15.38% downward movement from the same quarter last year.
BWA’s full-year Zacks Consensus Estimates are calling for earnings of $3.91 per share and revenue of $14.78 billion. These results would represent year-over-year changes of +4.27% and -6.73%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for BorgWarner. Recent revisions tend to reflect the latest 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.23% higher. Currently, BorgWarner is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, BorgWarner is currently exchanging hands at a Forward P/E ratio of 8.31. This signifies a discount in comparison to the average Forward P/E of 12.7 for its industry.
Meanwhile, BWA’s PEG ratio is currently 1.03. 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. As of the close of trade yesterday, the Automotive – Original Equipment industry held an average PEG ratio of 0.86.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report