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BorgWarner (BWA) Registers a Bigger Fall Than the Market: Important Facts to Note
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BorgWarner (BWA - Free Report) closed the most recent trading day at $38.23, moving -0.98% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
The auto parts supplier's stock has dropped by 5.27% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 12.04% and lagging the S&P 500's loss of 3.95%.
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 November 2, 2023. The company is predicted to post an EPS of $0.90, indicating a 27.42% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.72 billion, showing an 8.38% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $15.16 billion. These totals would mark changes of -17.83% and -4.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BorgWarner. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.53% higher. BorgWarner is currently a Zacks Rank #3 (Hold).
In the context of valuation, BorgWarner is at present trading with a Forward P/E ratio of 10.23. This signifies a discount in comparison to the average Forward P/E of 12.84 for its industry.
Investors should also note that BWA has a PEG ratio of 0.89 right now. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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BorgWarner (BWA) Registers a Bigger Fall Than the Market: Important Facts to Note
BorgWarner (BWA - Free Report) closed the most recent trading day at $38.23, moving -0.98% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
The auto parts supplier's stock has dropped by 5.27% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 12.04% and lagging the S&P 500's loss of 3.95%.
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 November 2, 2023. The company is predicted to post an EPS of $0.90, indicating a 27.42% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.72 billion, showing an 8.38% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $15.16 billion. These totals would mark changes of -17.83% and -4.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BorgWarner. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.53% higher. BorgWarner is currently a Zacks Rank #3 (Hold).
In the context of valuation, BorgWarner is at present trading with a Forward P/E ratio of 10.23. This signifies a discount in comparison to the average Forward P/E of 12.84 for its industry.
Investors should also note that BWA has a PEG ratio of 0.89 right now. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.