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

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 higher today making it today's featured automotive winner. The industry as a whole closed the day up 1%. By the end of trading, BorgWarner rose $1.55 (2.1%) to $74.94 on light volume. Throughout the day, 554,960 shares of BorgWarner exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $73.37-$74.94 after having opened the day at $73.50 as compared to the previous trading day's close of $73.39. Other companies within the Automotive industry that increased today were: Orbital Corporation ( OBT), up 7.4%, Lear Corporation ( LEA), up 6.3%, Monro Muffler Brake ( MNRO), up 4%, and Tenneco ( TEN), up 3.7%.
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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 $8.68 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 3.5% year to date as of the close of trading on Thursday. 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 largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Supreme Industries ( STS), down 9.5%, China Zenix Auto International Ltd ADR ( ZX), down 2%, Strattec Security Corporation ( STRT), down 1.8%, and China Automotive Systems ( CAAS), down 1.8%, were all laggards within the automotive industry with Oshkosh Corporation ( OSK) being today's automotive industry laggard.

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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