BWA · NASDAQ · STOCK
BorgWarner
$68.44
52W $38.31 – $78.82
66/100
$14.03B
34.2
1.11
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is BWA Bullish or Bearish?
Bullish.
Innellis AI committee rates BorgWarner (BWA) Buy with a composite score of 66/100
, based on 4 analysts with 75% agreement.
Last updated August 09, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +8.79 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -11.21 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The primary driver is 5 consecutive earnings beats -- consistent execution. The main limiting factor is rsi at 70 is in overbought territory. The committee is constructive but not yet at full conviction.
Bull & Bear Case
Bull Case
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- News sentiment is positive (+0.20 across 38 articles, 14d) — News
Bear Case
- RSI at 70 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 09, 2026
Overall Committee Score
66/100
Agreement
75%
Analysts
4
Conviction
High
Sector Rank
Top 11%
of 124 Consumer Cyclical peers
Growth Analyst
bullish
82
/ 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− RSI at 70 is in overbought territory
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 38 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score strengthened from 60.9 to 66.2.
- Conviction changed from moderate to high.
- Committee agreement increased notably from 60% to 75%.
- Bullish support removed: 2 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
- Analyst(s) abstained: Value Analyst.
Analyst-level changes:
- Growth Analyst: score 72->82 (+10).
- News Analyst: +1 bullish signal(s).
- Value Analyst abstained (was neutral at 48).
Comparing 2026-08-08 to 2026-08-09 (1 day apart).
Technical Analysis
RSI (14)
70.2
Overbought
MACD Histogram
0.637
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$50.23
Resistance
$70.02
Bollinger %B
1.21
Above Upper Band
Price vs Moving Averages
EMA 9
$65.25
Above
EMA 21
$64.89
Above
EMA 50
$64.95
Above
EMA 200
$56.77
Above
Fundamental Analysis
Valuation
69
Growth
91
Profitability
15
Financial Health
95
Cash Flow
70
Valuation
P/E Ratio
34.2×
P/B Ratio
2.49×
PEG Ratio
0.32
Dividend Yield
0.99%
52W High
$78.82
52W Low
$38.31
Quality & Growth
ROE
509.0%
ROA
201.2%
Gross Margin
1946.5%
Operating Margin
1002.5%
Revenue Growth YoY
—
Debt / Equity
0.69
AI Fundamental Assessment
P/E ratio of 34.2 (rich relative to a 15-40x range); Price-to-book of 2.5x; PEG ratio of 0.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 5.1%; Return on assets of 2.0%; Net margin of 2.9%; Gross margin of 19.5%; Current ratio of 2.13 (healthy short-term liquidity); Debt-to-equity of 0.69; Free cash flow per share is positive (5.98); Most recent quarter beat estimates by 10.3%; 5 consecutive earnings beats; EPS growth accelerating (-8.1% -> +14.5% QoQ); Average YoY EPS growth of 17.4%; Analyst estimates rising over recent quarters
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