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 0.3%. By the end of trading, BorgWarner fell $0.86 (-1.0%) to $83.95 on average volume. Throughout the day, 947,818 shares of BorgWarner exchanged hands as compared to its average daily volume of 973,100 shares. The stock ranged in price between $83.81-$85.07 after having opened the day at $84.86 as compared to the previous trading day's close of $84.81. Other companies within the Automotive industry that declined today were: Tata Motors ( TTM), down 3.8%, Winnebago Industries ( WGO), down 2.6%, Tesla Motors ( TSLA), down 2.6% and Douglas Dynamics ( PLOW), down 2.0%.
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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 $9.9 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate BorgWarner a buy, no analysts rate it a sell, and 7 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 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, Monro Muffler Brake ( MNRO), down 7.2%, Westport Innovations ( WPRT), down 4.7%, Federal-Mogul ( FDML), down 4.3% and China Automotive Systems ( CAAS), down 3.4%.

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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