It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
BorgWarner (BWA)
Michigan-based BorgWarner, Inc. is a global leader in clean and efficient technology solutions required for combustion, hybrid and electric vehicles. Its products include four-wheel-drive and all-wheel-drive transfer cases (primarily for light trucks and sport utility vehicles or SUVs), as well as automatic transmission and timing chain systems. These products are aimed at improving vehicle performance, propulsion efficiency, stability and air quality. These products are produced and sold worldwide, primarily to OEMs of passenger cars, SUVs, trucks and commercial transportation products.
BWA sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive – Original Equipment industry’s P/E of 12.3X, shares of BorgWarner are trading at a forward P/E of 8.5X. BWA also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 5.5X, and a Price/Sales ratio of 0.5X.
A company’s earnings performance is important for value investors as well. For fiscal 2024, eight analysts revised their earnings estimate higher in the last 60 days for BWA, while the Zacks Consensus Estimate has increased $0.16 to $4.07 per share. BWA also holds an average earnings surprise of 10.3%.
BWA should be on investors’ short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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BorgWarner Inc. (BWA) : Free Stock Analysis Report