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 up 0.7%. By the end of trading, BorgWarner fell $1.01 (-1.3%) to $78.17 on average volume. Throughout the day, 1,139,841 shares of BorgWarner exchanged hands as compared to its average daily volume of 1,033,500 shares. The stock ranged in price between $77.84-$79.38 after having opened the day at $79.18 as compared to the previous trading day's close of $79.18. Other companies within the Automotive industry that declined today were: Strattec Security Corporation ( STRT), down 5.9%, Winnebago Industries ( WGO), down 3.7%, Motorcar Parts of America ( MPAA), down 3.1% and Navistar International ( NAV), down 2.6%.
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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 $9.0 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates BorgWarner as a buy. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Meritor ( MTOR), down 22.1%, Accuride ( ACW), down 4.9%, SORL Auto Parts ( SORL), down 4.0% and Dorman Products ( DORM), down 3.9% , were all gainers within the automotive industry with TRW Automotive Holdings ( TRW) 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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