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Why BorgWarner (BWA) Dipped More Than Broader Market Today

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BorgWarner (BWA - Free Report) ended the recent trading session at $33.20, demonstrating a -0.6% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw an increase of 0.17%.

Heading into today, shares of the auto parts supplier had gained 9.47% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 0.42% and the S&P 500's gain of 5.34% in that time.

Market participants will be closely following the financial results of BorgWarner in its upcoming release. The company plans to announce its earnings 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. In the meantime, our current consensus estimate forecasts the revenue to be $3.54 billion, indicating a 15.38% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.91 per share and a revenue of $14.78 billion, demonstrating changes of +4.27% and -6.73%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for BorgWarner. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. Right now, BorgWarner possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, BorgWarner is holding a Forward P/E ratio of 8.54. This indicates a discount in contrast to its industry's Forward P/E of 13.08.

One should further note that BWA currently holds a PEG ratio of 1.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 0.9 at yesterday's closing price.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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