Why BorgWarner Stock Jumped 12% in September
Shares of BorgWarner (NYSE: BWA) gained 12.4% last month, according to data provided by S&P Global Market Intelligence. The stock is down 36% over the last five years, as the company deals with a weak industry backdrop for automotive powertrain components. It has managed to grow sales over that time period, but not enough to justify a higher valuation, which is the main reason the stock has fallen.
But one analyst with Nomura initiated coverage of the stock last month with a buy rating. The analyst cited BorgWarner's continued sales outperformance relative to the industry, the expectation for higher margins, and relatively low exposure to the trade wars.
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Source Fool.com
