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BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
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BorgWarner (BWA - Free Report) closed at $41.29 in the latest trading session, marking a +1.33% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the auto parts supplier had lost 1.57% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 4.42% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from BorgWarner as it approaches its next earnings report date. In that report, analysts expect BorgWarner to post earnings of $0.89 per share. This would mark a year-over-year decline of 28.23%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, down 8.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.76 per share and revenue of $15.22 billion. These totals would mark changes of -18.26% and -3.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BorgWarner. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.75% lower. BorgWarner currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.84 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.06.
We can also see that BWA currently has a PEG ratio of 0.91. 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. BWA's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
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BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
BorgWarner (BWA - Free Report) closed at $41.29 in the latest trading session, marking a +1.33% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the auto parts supplier had lost 1.57% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 4.42% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from BorgWarner as it approaches its next earnings report date. In that report, analysts expect BorgWarner to post earnings of $0.89 per share. This would mark a year-over-year decline of 28.23%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, down 8.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.76 per share and revenue of $15.22 billion. These totals would mark changes of -18.26% and -3.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BorgWarner. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.75% lower. BorgWarner currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.84 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.06.
We can also see that BWA currently has a PEG ratio of 0.91. 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. BWA's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.