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BorgWarner Inc. (BWA), headquartered in Auburn Hills, Michigan, is a leader in providing innovative and sustainable mobility solutions for the automotive industry. With a market cap of $8.37 billion, BorgWarner specializes in delivering advanced propulsion systems, including electric, hybrid, and internal combustion technologies, to support the shift toward cleaner and more efficient transportation solutions.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks and BorgWarner perfectly fits this category with its prominent role in the automotive industry. BorgWarner's leadership in developing innovative propulsion systems and its commitment to advancing sustainable mobility solutions underscore its strong market position and long-term growth potential in the evolving transportation sector.
BWA shares are trading 10.5% below their 52-week high of $41.06, which they hit on Sep. 29, 2023. The stock has gained 14.8% over the past three months, outperforming the broader S&P 500 Index ($SPX), which has gained 4.7% over the same time frame.
In the longer term, BWA is up 2.5% on a YTD basis. However, the shares have declined 7.7% over the past 52 weeks. In comparison, the SPX has gained 20.3% in 2024 and rallied 34.2% over the past year.
To confirm its recent bullish trend, BWA has been trading above its 50-day and 200-day moving averages since mid-September.
On Jul. 31, BWA’s shares gained more than 8% following the release of its Q2 earnings report. The company surpassed earnings estimates but missed revenue estimates. The company anticipates full-year earnings from $3.95 to $4.15 per share and revenue from $14.1 billion to $14.4 billion.
Highlighting the contrast in performance, BWA’s competitor, American Axle & Manufacturing Holdings, Inc. (AXL), has underperformed both stock and the SPX. AXL has declined 27.6% on a YTD basis.
Given the recent strong price performance, analysts are moderately optimistic about BWA's prospects. The stock has a consensus rating of "Moderate Buy" from 17 analysts in coverage. The mean price target is $40.94, suggesting a premium of 11.4% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
