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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

BorgWarner ( BWA) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day up 1.3%. By the end of trading, BorgWarner fell $1.24 (-1.3%) to $97.46 on average volume. Throughout the day, 848,416 shares of BorgWarner exchanged hands as compared to its average daily volume of 871,000 shares. The stock ranged in price between $97.34-$98.83 after having opened the day at $98.05 as compared to the previous trading day's close of $98.70. Other companies within the Automotive industry that declined today were: Westport Innovations ( WPRT), down 11.2%, Orbital Corporation ( OBT), down 5.0%, Remy International ( REMY), down 2.4% and Meritor ( MTOR), down 1.9%.

BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. BorgWarner has a market cap of $10.9 billion and is part of the consumer goods sector. Shares are up 33.2% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate BorgWarner a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates BorgWarner as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, SORL Auto Parts ( SORL), up 30.9%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 16.0%, Accuride ( ACW), up 7.2% and American Axle & Mfg Holdings ( AXL), up 5.8% , were all gainers within the automotive industry with Toyota Motor ( TM) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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