BWA Stock Analysis: Buy, Sell, or Hold?
BWA - BorgWarner Inc.
$71.84
1.30 (1.84%)
▲
5d:
-4.02%
30d:
+17.52%
90d:
+37.02%
BUY
MODERATE Confidence
Analysis Updated: Jun 18, 2026 12:00 AM ET
Earnings: Jul 30, 2026
Smart Money Accumulation
None View Scanner →
Strength: 6.5/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: BWA shows positive signals but monitor for confirmation. Market pricing in 7.4% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: BWA shows positive signals but monitor for confirmation. Market pricing in 7.4% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$86.65
Based on 8.4% avg growth
INTRINSIC VALUE TODAY
$53.80
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: BWA is currently trading at $71.84, which is considered fair relative to its 30-day fair value range of $64.92 to $74.48. From a valuation perspective, the stock is trading at a premium (Forward PE: 12.3) compared to its historical average (9.9). At these levels, the market is pricing in 7.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, BWA is in a strong uptrend. The price is currently testing key support at $70.35. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, BWA is in a strong uptrend. The price is currently testing key support at $70.35. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$64.92 -
$74.48
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
66.7%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($76.33)
- NEUTRAL: Trading at premium valuation - market expects 7.4% growth which is achievable
Trading Range Analysis
30-Day Trading Range
$64.92 -
$74.48
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$70.35
Resistance Level
$76.50
Current Trend
Strong Uptrend
Technical data as of
Jun 18, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.26
Wall Street Target
$76.33
(+6.3%)
Revenue Growth (YoY)
0.5%
Earnings Growth (YoY)
61.1%
Profit Margin
2.5%
Valuation Premium vs History
+7.4% premium
PE vs Historical
12.3 vs 9.9
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+7.4%
(market-implied from PE analysis)
1-Year Target
$77.16
(+7%)
2-Year Target
$82.87
(+15%)
3-Year Target
$89.00
(+24%)
3-Yr Target (if PE normalizes)
(PE: 12→10)
PE COMPRESSION
$71.87
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 12.8%)
$183.09
(+155%)
Base:
(SPY PE: 12.3, Growth: 12.8%)
$103.06
(+44%)
Bear:
(PE: 9.9, Growth: 12.8%)
$83.22
(+16%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (41x PE), but valuation improves significantly next year (12x PE) as earnings recover.
Trailing PE: 41.01 | Current EPS (TTM): $1.72
Bull Case
$155.19
(+116%)
Analyst growth 100.0%, PE expands to 45.1
Base Case
$141.08
(+96%)
Market implied 100.0%, PE stable at 41.0
Bear Case
$47.97
(-33%)
Severe decline -20.0%, PE contracts to 34.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 19, 2026 5:29 AM ET
Data refreshes hourly during market hours. Next update: 6:29 AM
Data refreshes hourly during market hours. Next update: 6:29 AM
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Technical Signals Check
Is BWA showing a specific setup today?
Insider Activity (6 Months)
0
Buys
8
Sells
Net
INSIDERS SELLING
Recent Transactions
Paul Arthur Farrell
SELL
12012 shares
2026-03-12
Stefan Demmerle
SELL
2500 shares
2026-03-10
Tonit M Calaway
SELL
14021 shares
2026-03-09
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