Our first pick is an automotive engineering company who beat estimates by two cents last quarter. And five analysts have increased their earnings forecasts for the company in the past 30 days. Our second recommendation is a sell for shares of a spin-off.
BorgWarner Inc. (BWA)
From AlphaProfit Sector Investors’ Newsletter
Engine and drivetrain component maker BorgWarner Inc. (BWA) is capitalizing on the global trend towards cleaner, more fuel-efficient vehicles.
BorgWarner’s first quarter sales rose 14% to $2.3 billion, beating analysts’ first quarter forecasts. Analysts expect the BorgWarner’s proprietary technology and diversified customer base to help its sales grow double-digits in each of 2016’s remaining quarters.
BorgWarner shares interest growth-at-a-reasonable-price investors. They trade at a low double-digit forward P/E versus prospects for EPS to grow 10% in the next 12 months. (Next earnings: Late July)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, May 2016