BWA Stock Analysis: Buy, Sell, or Hold?
BWA - BorgWarner Inc.
$47.41
-1.52 (-3.11%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 11, 2026
11d
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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 1.9% growth. Moderate conviction.
💡 BUY OPPORTUNITY: BWA shows positive signals but monitor for confirmation. Market pricing in 1.9% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$62.34
Based on 6.2% avg growth
INTRINSIC VALUE TODAY
$38.71
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 9.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: BWA is currently trading at $47.41, which is considered fair relative to its 30-day fair value range of $46.04 to $48.38. The stock's valuation (Forward PE: 9.5) is in line with its historical norms (9.0). At these levels, the market is pricing in 1.9% annual earnings growth.
Technical Outlook: Technically, BWA is in a strong uptrend. The price is currently testing key support at $46.30. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.1% recently.
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 $46.30. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.1% recently.
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
Fair Price Range
$46.04 -
$48.38
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
66.2%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.1%)
- NEUTRAL: Near Wall St target ($50.54)
- BULLISH: Expecting earnings turnaround to 1.9% growth with 4.1% revenue growth
Fair Price Analysis
30-Day Fair Range
$46.04 -
$48.38
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$46.30
Resistance Level
$49.21
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
9.52
Wall Street Target
$50.54
(+3.3%)
Revenue Growth (YoY)
4.1%
Earnings Growth (YoY)
-30.1%
Profit Margin
0.9%
Valuation Premium vs History
+1.9% premium
PE vs Historical
9.5 vs 9.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.9%
(market-implied from PE analysis)
1-Year Target
$49.86
(+2%)
2-Year Target
$50.81
(+4%)
3-Year Target
$51.77
(+6%)
3-Yr Target (if PE normalizes)
(PE: 10→9)
PE COMPRESSION
$48.97
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 8.3%)
$145.61
(+198%)
Base:
(SPY PE: 9.5, Growth: 8.3%)
$62.13
(+27%)
Bear:
(PE: 8.1, Growth: 8.3%)
$52.81
(+8%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Forward PE: 10.41 | Forward EPS (Implied): $4.70
Bull Case
$59.08
(+21%)
Analyst growth 15.0%, PE expands to 10.9
Base Case
$48.93
(0%)
Market implied 0.0%, PE stable at 10.4
Bear Case
$37.43
(-24%)
Severe decline -15.0%, PE contracts to 9.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 4:12 PM ET
Data refreshes hourly during market hours. Next update: 5:12 PM
Data refreshes hourly during market hours. Next update: 5:12 PM
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Technical Signals Check
Is BWA showing a specific setup today?
Insider Activity (6 Months)
0
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Alexis P Michas
SELL
8772 shares
2025-09-02
Stefan Demmerle
SELL
5000 shares
2025-08-13
Isabelle Mckenzie
SELL
2500 shares
2025-08-12
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