From Nasdaq: 2024-11-12 10:31:00

BorgWarner Inc. (BWA) is set to benefit from EV-focused mergers, business wins, and restructuring amidst currency fluctuations and a lower market production outlook. Recent acquisitions and strategic agreements are driving growth, with expected eProduct sales of $2.4 billion in 2024. The company is also focusing on cost-saving measures and has raised its full-year margin outlook.

However, the company faces challenges from currency fluctuations, rising costs, and a lower sales outlook for 2024. BorgWarner anticipates a sales headwind of $20 million due to weaker foreign currencies, leading to a reduced sales forecast of $14-$14.2 billion. High SG&A costs and research and development expenses are also expected to impact margins, with estimated free cash flow declining year-over-year.

Investors looking for other options in the auto industry may consider Dorman Products, Inc. (DORM), Tesla, Inc. (TSLA), and BYD Company Limited (BYDDY), all currently holding a Zacks Rank #1 (Strong Buy). These stocks have positive growth estimates for 2024 and 2025, making them attractive investment opportunities in the market.

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Read more at Nasdaq: Here’s Why You Should Hold BorgWarner Stock in Your Portfolio Now