Are Auto-Tires-Trucks Stocks Lagging BorgWarner (BWA) This Year?

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BorgWarner (BWA) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

BorgWarner is a member of the Auto-Tires-Trucks sector. This group includes 103 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. BorgWarner is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BWA's full-year earnings has moved 3.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that BWA has returned about 17.6% since the start of the calendar year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 6.4% on average. This shows that BorgWarner is outperforming its peers so far this year.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Modine (MOD). The stock has returned 50.3% year-to-date.

The consensus estimate for Modine's current year EPS has increased 4.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, BorgWarner belongs to the Automotive - Original Equipment industry, a group that includes 54 individual companies and currently sits at #82 in the Zacks Industry Rank. On average, this group has lost an average of 2.2% so far this year, meaning that BWA is performing better in terms of year-to-date returns. Modine is also part of the same industry.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on BorgWarner and Modine as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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