We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
BorgWarner (BWA - Free Report) closed at $46.40 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the auto parts supplier had lost 2.38% over the past month, lagging the Auto-Tires-Trucks sector's gain of 25.05% and the S&P 500's gain of 3.34% in that time.
BorgWarner will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. On that day, BorgWarner is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, up 14.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.75 per share and revenue of $17.45 billion. These totals would mark changes of +3.26% and +10.42%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BorgWarner. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.14% lower within the past month. BorgWarner is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 9.59. For comparison, its industry has an average Forward P/E of 15.24, which means BorgWarner is trading at a discount to the group.
Investors should also note that BWA has a PEG ratio of 0.68 right now. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BWA in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
BorgWarner (BWA - Free Report) closed at $46.40 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the auto parts supplier had lost 2.38% over the past month, lagging the Auto-Tires-Trucks sector's gain of 25.05% and the S&P 500's gain of 3.34% in that time.
BorgWarner will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2023. On that day, BorgWarner is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 8.57%. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, up 14.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.75 per share and revenue of $17.45 billion. These totals would mark changes of +3.26% and +10.42%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BorgWarner. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.14% lower within the past month. BorgWarner is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BorgWarner currently has a Forward P/E ratio of 9.59. For comparison, its industry has an average Forward P/E of 15.24, which means BorgWarner is trading at a discount to the group.
Investors should also note that BWA has a PEG ratio of 0.68 right now. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BWA in the coming trading sessions, be sure to utilize Zacks.com.