BorgWarner Inc (BWA): Consumer Goods' Highlighted Dud Of The Day

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 Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.1%. By the end of trading, BorgWarner fell $1.37 (-1.8%) to $75.32 on average volume. Throughout the day, 988,817 shares of BorgWarner exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $74.97-$77.18 after having opened the day at $76.86 as compared to the previous trading day's close of $76.69. Other companies within the Consumer Goods sector that declined today were: Lifeway Foods ( LWAY), down 10.2%, Crumbs Bake Shop ( CRMB), down 8.1%, Tandy Brands Accessories ( TBAC), down 8%, and Furniture Brands International ( FBN), down 7.5%.
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BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. BorgWarner has a market cap of $8.98 billion and is part of the automotive industry. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Monday. 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, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Strattec Security Corporation ( STRT), up 7.2%, Central European Distribution ( CEDC), up 6.5%, China Marine Food Group ( CMFO), up 6%, and Standard Register Company ( SR), up 5.6%, were all gainers within the consumer goods sector with Lululemon Athletica ( LULU) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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