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BorgWarner (BWA) Rises Higher Than Market: Key Facts

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BorgWarner (BWA - Free Report) ended the recent trading session at $34.74, demonstrating a +0.12% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.

The auto parts supplier's shares have seen an increase of 12.74% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 0.13% and the S&P 500's gain of 3.55%.

Analysts and investors alike will be keeping a close eye on the performance of BorgWarner in its upcoming earnings disclosure. The company's earnings report is set to go public on May 2, 2024. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 18.35% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.54 billion, indicating a 15.38% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.91 per share and revenue of $14.78 billion, which would represent changes of +4.27% and -6.73%, respectively, from the prior year.

Any recent changes to analyst estimates for BorgWarner should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. BorgWarner currently has a Zacks Rank of #4 (Sell).

In terms of valuation, BorgWarner is currently trading at a Forward P/E ratio of 8.88. This denotes a discount relative to the industry's average Forward P/E of 13.29.

We can additionally observe that BWA currently boasts a PEG ratio of 0.98. 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 industry currently had an average PEG ratio of 0.88 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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