For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of BorgWarner are trading at a forward earnings multiple of 8.3X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 5.4X, and a Price/Sales ratio of 0.5X.
A company’s earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for BWA, while the Zacks Consensus Estimate has increased $0.05 to $4.10 per share. BWA also holds an average earnings surprise of 11.1%.
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