BorgWarner Inc (BWA): Today's Featured Automotive Loser

BorgWarner ( BWA) pushed the Automotive industry lower today making it today's featured Automotive loser. The industry as a whole closed the day up 0.8%. By the end of trading, BorgWarner fell $2.52 (-3%) to $79.99 on heavy volume. Throughout the day, 3.5 million shares of BorgWarner exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $78.09-$80.80 after having opened the day at $80.02 as compared to the previous trading day's close of $82.51. Other company's within the Automotive industry that declined today were: Supreme Industries ( STS), down 4.3%, Federal-Mogul ( FDML), down 4.2%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 3.7%, and Dana ( DAN), down 3%.

BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. The company's Engine segment offers turbochargers, emissions systems, thermal systems, diesel cold start and gasoline ignition technology, and cabin heaters. BorgWarner has a market cap of $8.71 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.9, equal to the average automotive industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 24.9% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate BorgWarner a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates BorgWarner as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Titan International ( TWI), up 9%, Wabco Holdings Incorporated ( WBC), up 8.2%, Fuel Systems Solutions ( FSYS), up 5.6%, and Orbital ( OBT), up 5.1%, were all gainers within the automotive industry with Johnson Controls ( JCI) being today's featured automotive industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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