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

BorgWarner ( BWA) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole was unchanged today. By the end of trading, BorgWarner fell $1.17 (-1.7%) to $65.93 on light volume. Throughout the day, 723,047 shares of BorgWarner exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $65.32-$67.49 after having opened the day at $67.37 as compared to the previous trading day's close of $67.10. Other company's within the Automotive industry that declined today were: Meritor ( MTOR), down 9.6%, Fuel Systems Solutions ( FSYS), down 4.2%, Modine Manufacturing Company ( MOD), down 4%, and Harley-Davidson ( HOG), down 3.7%.

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 $7.68 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.2, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Tuesday. Currently there are 10 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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