In the latest market close, BorgWarner (BWA) reached $34.80, with a +0.17% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.
The auto parts supplier’s stock has climbed by 10.92% in the past month, exceeding the Auto-Tires-Trucks sector’s loss of 6.8% and the S&P 500’s gain of 1.5%.
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 May 2, 2024. The company is forecasted to report an EPS of $0.89, showcasing a 18.35% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.54 billion, down 15.38% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.91 per share and revenue of $14.78 billion, indicating changes of +4.27% and -6.73%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for BorgWarner. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% increase. BorgWarner is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, BorgWarner is holding a Forward P/E ratio of 8.89. Its industry sports an average Forward P/E of 12.79, so one might conclude that BorgWarner is trading at a discount comparatively.
Investors should also note that BWA has a PEG ratio of 0.98 right now. 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. As of the close of trade yesterday, the Automotive – Original Equipment industry held an average PEG ratio of 0.82.
The Automotive – Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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