For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
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 12.8X, shares of BorgWarner are trading at a forward P/E of 8.5X. BWA also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 5X, and a Price/Sales ratio of 0.6X.
A company’s earnings performance is important for value investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for BWA, while the Zacks Consensus Estimate has increased $0.2 to $4.45 per share. BWA also holds an average earnings surprise of 13.9%.
BWA should be on investors’ short list 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
This article originally published on Zacks Investment Research (zacks.com).