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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

BorgWarner ( BWA) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.2%. By the end of trading, BorgWarner fell $1 (-1.4%) to $72.49 on average volume. Throughout the day, one million shares of BorgWarner exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $72.14-$73.47 after having opened the day at $73.43 as compared to the previous trading day's close of $73.49. Other companies within the Automotive industry that declined today were: China Automotive Systems ( CAAS), down 5.2%, Spartan Motors ( SPAR), down 3.9%, Meritor ( MTOR), down 3.6%, and Gentex Corporation ( GNTX), down 3.2%.
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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 $8.64 billion and is part of the consumer goods sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 3% year to date as of the close of trading on Monday. Currently there are eight 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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Orbital Corporation ( OBT), up 19.6%, Remy International ( REMY), up 3.5%, Stoneridge ( SRI), up 2.9%, and Hyster-Yale Materials Handling ( HY), up 2.7%, were all gainers within the automotive industry with Polaris Industries ( PII) being today's featured automotive industry leader.

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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