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 was unchanged today. By the end of trading, BorgWarner fell $1.51 (-1.5%) to $97.77 on average volume. Throughout the day, 811,560 shares of BorgWarner exchanged hands as compared to its average daily volume of 816,700 shares. The stock ranged in price between $97.44-$100.08 after having opened the day at $99.62 as compared to the previous trading day's close of $99.28. Other companies within the Automotive industry that declined today were: Motorcar Parts of America ( MPAA), down 3.8%, Patrick Industries ( PATK), down 1.9%, Monro Muffler Brake ( MNRO), down 1.8% and Tesla Motors ( TSLA), down 1.7%.

BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. BorgWarner has a market cap of $11.4 billion and is part of the consumer goods sector. Shares are up 38.6% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate BorgWarner a buy, no analysts rate it a sell, and 6 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, Strattec Security Corporation ( STRT), up 3.7%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 3.5%, Gentex Corporation ( GNTX), up 3.3% and Accuride ( ACW), up 3.0%.

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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