BWA Stock Analysis: Buy, Sell, or Hold?
BWA - BorgWarner Inc.
$53.14
-1.10 (-2.03%)
▼
5d:
-1.79%
30d:
-7.69%
90d:
+16.61%
BUY
HIGH Confidence
Analysis Updated: Mar 27, 2026 12:00 AM ET
Earnings: May 06, 2026
Smart Money Accumulation
BWA is down 4.9% this week, but smart money is accumulating calls. Top strike: $60 2026-05-15 with 10,259 OI. Call ratio: 100% View Scanner →
Strength: 7.4/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: BWA shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
✅ BUY SIGNAL: BWA shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$80.41
Based on 8.2% avg growth
INTRINSIC VALUE TODAY
$49.93
Trading above fair value
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 9.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: BWA is currently trading at $53.14, which is considered fair relative to its 30-day fair value range of $51.92 to $58.43. The stock's valuation (Forward PE: 9.3) is in line with its historical norms (9.3). Remarkably, the market is currently pricing in an annual earnings decline of 0.2% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, BWA is in a strong uptrend. Immediate support is located at $51.06, while resistance sits at $56.65.
Market Sentiment: BWA has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $68.20 (+25.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, BWA is in a strong uptrend. Immediate support is located at $51.06, while resistance sits at $56.65.
Market Sentiment: BWA has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $68.20 (+25.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$51.92 -
$58.43
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 25.7% below Wall St target ($68.20)
Fair Price Analysis
30-Day Fair Range
$51.92 -
$58.43
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$51.06
Resistance Level
$56.65
Current Trend
Strong Uptrend
Technical data as of
Mar 27, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.29
Wall Street Target
$68.20
(+25.7%)
Revenue Growth (YoY)
3.9%
Earnings Growth (YoY)
-30.1%
Profit Margin
1.9%
Valuation Discount vs History
-0.2% cheaper
PE vs Historical
9.3 vs 9.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.2%
(market-implied from PE analysis)
1-Year Target
$54.13
(0%)
2-Year Target
$54.02
(0%)
3-Year Target
$53.92
(-1%)
3-Yr Target (if PE normalizes)
(PE: 9→9)
$54.00
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 12.4%)
$185.56
(+242%)
Base:
(SPY PE: 9.3, Growth: 12.4%)
$76.93
(+42%)
Bear:
(PE: 7.9, Growth: 12.4%)
$65.39
(+21%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (41x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 40.80 | Current EPS (TTM): $1.28
Bull Case
$114.91
(+112%)
Analyst growth 100.0%, PE expands to 44.9
Base Case
$104.46
(+93%)
Market implied 100.0%, PE stable at 40.8
Bear Case
$35.52
(-34%)
Severe decline -20.0%, PE contracts to 34.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.3 to 9.3
Stabilization Target:
$54.32
(+0.2%)
PE Expansion Potential:
+0.2%
Share & Embed Analysis
Last updated: March 30, 2026 10:09 AM ET
Data refreshes hourly during market hours. Next update: 11:09 AM
Data refreshes hourly during market hours. Next update: 11:09 AM
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Technical Signals Check
Is BWA showing a specific setup today?
Insider Activity (6 Months)
0
Buys
11
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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Advanced BWA Option Strategies
Professional options setups generated by AI based on today's BWA price and gamma walls.
