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BorgWarner Inc. (BWA) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Cyclical · Auto Parts

Earnings in 6 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $56.63, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Earnings in 6 days (event risk).

BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across four segments, generating $14.3B in 2025 net sales. Revenue comes primarily from global OEM automotive and commercial vehicle manufacturers; eProducts (EV/hybrid... Read more

$56.63+7.0% A.UpsideScore 5.1/10#15 of 26 Auto Parts
Stop $52.94Target $60.06(analyst − 10%)A.R:R 0.9:1
Analyst target$66.73+17.8%15 analysts
$60.06our TP
$56.63price
$66.73mean
$48
$81

Sell if holding. At $56.63, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Earnings in 6 days (event risk). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Score 5.1/10, moderate confidence.

Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Thin upside margin: 7.0%
Earnings in 6 days (event risk)
Weak growth

Key Metrics

P/E (TTM)42.4
P/E (Fwd)9.3
Mkt Cap$11.2B
EV/EBITDA6.6
Profit Mgn1.9%
ROE5.9%
Rev Growth3.9%
Beta1.03
Dividend1.25%
Rating analysts21

Quality Signals

Piotroski F8/9

Options Flow

P/C0.32bullish
IV72%elevated
Max Pain$43-25.0% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicMexico
    10-K Item 1A: 'In 2025, we imported approximately $918 million in value to the U.S. Approximately 68% of that value originated in Mexico'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
3.2
Quality Rank
3.6
Value Rank
3.6

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
1.6
Bollinger
1.8
52w Position
6.1

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
3.5
Low model confidence on this dimension (33%).
GatesA.R:R 0.9 < 1.5@spotEARNINGS PROXIMITY 6d<=7dMomentum 4.7<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.7>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
57 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $51.88Resistance $56.95

Price Targets

$53
$60
A.Upside+6.1%
A.R:R0.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Reward/Risk 0.9:1 at current price — below 1.5:1 minimum
! EARNINGS_PROXIMITY:6d<=7d

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-06 (6d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BWA stock a buy right now?

Sell if holding. At $56.63, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Earnings in 6 days (event risk). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Prior stop was $52.94. Score 5.1/10, moderate confidence.

What is the BWA stock price target?

Take-profit target: $60.06 (+7.0% upside). Prior stop was $52.94. Stop-loss: $52.94.

What are the risks of investing in BWA?

Thin upside margin: 7.0%; Earnings in 6 days (event risk); Weak growth.

Is BWA overvalued or undervalued?

BorgWarner Inc. trades at a P/E of 42.4 (forward 9.3). TrendMatrix value score: 7.8/10. Verdict: Sell.

What do analysts say about BWA?

21 analysts cover BWA with a consensus score of 3.7/5. Average price target: $67.

What does BorgWarner Inc. do?BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across...

BorgWarner manufactures clean and efficient technology solutions for combustion, hybrid, and electric vehicles across four segments, generating $14.3B in 2025 net sales. Revenue comes primarily from global OEM automotive and commercial vehicle manufacturers; eProducts (EV/hybrid technologies) accounted for 18% of 2025 net sales.

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