DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 2 minutes ago

BWA·BorgWarner Inc.

$.
+. (+.%)
After Hours
High
$68.60
Open
$66.85
Market Cap
13.50B
52W High
$70.31
Low
$66.35
P. Close
$68.28
P/E
37.29
52W Low
$31.83
Fwd P/E
11.53
Mean Target
$68.07
Technical Score (1D)
100
BUY
News Sentiment
47
MIXED
Analysts are adjusting their outlook for BorgWarner (BWA) following Q1 results, with TD Cowen and Barclays raising their price targets to $67 and $75 respectively, reflecting increased constructiveness on earnings resilience and new automotive contracts. This positive analyst sentiment is supported by BorgWarner's strong EBIT growth and an 18% return on invested capital, alongside low debt levels and a high profit quality score, positioning it as a compelling value play. However, recent SEC filings reveal a notable pattern of insider selling, with several executives divesting shares totaling over $3 million in recent weeks, which could introduce some caution for traders. Despite these sales, one fund, Quantedge Capital, has significantly increased its stake in BWA, now representing 10.4% of its assets under management, indicating growing investor conviction. The company's stock has experienced a strong rebound recently, prompting a reassessment of its valuation, with some analysts seeing potential upside. Investors should monitor upcoming earnings reports and management commentary for further insights into the drivers behind these price target adjustments and insider activities.
Earnings Summary
BorgWarner Inc. is a global supplier of powertrain solutions, providing essential components and systems for combustion, hybrid, and electric vehicles across various sectors including light and commercial vehicles, and the off-highway market. The company, founded in 1928 and based in Michigan, plays a significant role in advancing efficient and sustainable automotive technologies within the Consumer Cyclical sector's Auto Parts industry. In its most recent reported quarters, BorgWarner demonstrated a positive earnings trend, with Q1 2026 EPS of $1.24 exceeding the estimate of $1.28, a slight miss, following a Q4 2025 EPS of $1.35 which beat the estimate of $1.20. Revenue also showed a mixed pattern, with Q1 2026 revenue at $3.53 billion missing the estimate of $3.59 billion, contrasting with Q4 2025 revenue of $3.57 billion which slightly beat the estimate of $3.56 billion. This indicates a recent deceleration in EPS performance compared to the prior two quarters where actual EPS consistently surpassed estimates. Historically, BorgWarner has shown a generally upward trajectory in year-over-year growth, with notable instances of beating analyst estimates for both EPS and revenue in prior periods, though the most recent quarter saw a slight EPS miss and revenue miss. The company has a pattern of delivering solid revenue figures, even when EPS performance fluctuates. Recent news highlights positive analyst sentiment, with multiple firms raising price targets following Q1 results and citing earnings resilience and new contracts, alongside diversification into non-automotive areas. However, significant insider selling has also been reported, juxtaposed with a substantial increase in stake by another investor. Investors should watch for continued performance in non-automotive segments and any further commentary on insider activity and its implications for future earnings resilience and growth trajectory in the upcoming quarters.

EPS

EstBeatMiss
$0.92$1.04$1.16$1.28$1.41Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.27 - -
Q1'26$1.29$1.24-3.8%
Q4'25$1.21$1.35+11.9%
Q3'25$1.18$1.24+5.1%
Q2'25$1.08$1.21+11.6%
Q1'25$0.97$1.11+13.9%

Revenue

EstBeatMiss
$3.5B$3.5B$3.6B$3.6B$3.7BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$3.6B - -
Q1'26$3.6B$3.5B-1.6%
Q4'25$3.6B$3.6B+0.4%
Q3'25 - $3.6B -
Q2'25 - $3.6B -
Q1'25 - $3.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

BWA Stock Snapshot

BWA is currently trading at $68.60, giving BorgWarner Inc. a market cap of 13.50B and a P/E ratio of 37.3. Today's range spans $66.35–$68.60, with shares opening at $66.85 and moving up $0.32 (0.5%) from the prior close. DailyIQ's technical score sits at 100/100 (BUY) with a news sentiment reading of 47/100.

Over the past year BWA has traded between $31.83 and $70.31 - the current price is +115.5% off the 52-week low and -2.4% from the high. 23 analysts cover the stock with a Buy consensus and a mean 12-month target of $68.07 (range $48.00–$81.00), implying downside of -0.8%.

BWA is showing the kind of bullish setup that active managers add to on dips - 100/100 (BUY), neutral sentiment at 47/100, 13.50B market cap in Consumer Cyclical, price $68.60 (near 52-week highs). The current P/E ratio stands at 37.3. At this cap tier, the combination of technical confirmation and positive sentiment is what separates speculative bullish positions from high-conviction ones. Annual range: $31.83–$70.31. The setup is in the latter category.

Earnings revision cycles in large-cap Consumer Cyclical names tend to compound: when technicals confirm a BUY thesis (100/100) and news sentiment (47/100, neutral) supports the narrative, analyst upgrades follow price rather than lead it. At $68.60 (near 52-week highs), BWA's position within the $31.83–$70.31 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.