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 down 0.9%. By the end of trading, BorgWarner fell $1 (-1.5%) to $64.26 on average volume. Throughout the day, 1.4 million shares of BorgWarner exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $63.87-$65.25 after having opened the day at $64.98 as compared to the previous trading day's close of $65.26. Other company's within the Automotive industry that declined today were: Enova Systems ( ENA), down 12.3%, ATC Venture Group ( ATC), down 9%, Motorcar Parts of America ( MPAA), down 5.4%, and Meritor ( MTOR), down 3.5%.

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 $7.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 14.2, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Friday. Currently there are eight analysts that rate BorgWarner a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates BorgWarner as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 11% and Tesla Motors ( TSLA), up 1.6%, were all gainers within the automotive industry with Magna International ( MGA) 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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