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BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
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BorgWarner (BWA - Free Report) closed the most recent trading day at $40.03, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the auto parts supplier had lost 4.15% over the past month, lagging the Auto-Tires-Trucks sector's loss of 2.7% and the S&P 500's loss of 1.27% in that time.
BorgWarner will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, down 28.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, down 8.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.76 per share and revenue of $15.22 billion, which would represent changes of -18.26% and -3.65%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% lower. BorgWarner is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.58 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.05.
Meanwhile, BWA's PEG ratio is currently 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Zacks.com.
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BorgWarner (BWA) Outpaces Stock Market Gains: What You Should Know
BorgWarner (BWA - Free Report) closed the most recent trading day at $40.03, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the auto parts supplier had lost 4.15% over the past month, lagging the Auto-Tires-Trucks sector's loss of 2.7% and the S&P 500's loss of 1.27% in that time.
BorgWarner will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, down 28.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, down 8.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.76 per share and revenue of $15.22 billion, which would represent changes of -18.26% and -3.65%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% lower. BorgWarner is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that BorgWarner has a Forward P/E ratio of 10.58 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.05.
Meanwhile, BWA's PEG ratio is currently 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Zacks.com.