BorgWarner Inc. (BWA) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been BorgWarner (BWA). Shares have been marching higher, with the stock up 13.6% over the past month. The stock hit a new 52-week high of $47.68 in the previous session. BorgWarner has gained 5.6% since the start of the year compared to the 13.4% gain for the Zacks Auto-Tires-Trucks sector and the 0.7% return for the Zacks Automotive - Original Equipment industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 30, 2025, BorgWarner reported EPS of $1.24 versus consensus estimate of $1.16 while it missed the consensus revenue estimate by 1.07%.For the current fiscal year, BorgWarner is expected to post earnings of $5.03 per share on $14.21 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $5.46 per share on $14.51 in revenues. This represents a year-over-year change of 6.8% and 2.11%, respectively.Valuation MetricsThough BorgWarner has recently hit a 52-week high, what is next for BorgWarner? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.BorgWarner has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 9.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.7X. On a trailing cash flow basis, the stock currently trades at 6.3X versus its peer group's average of 8.5X. Additionally, the stock has a PEG ratio of 0.93. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making BorgWarner an interesting choice for value investors.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, BorgWarner currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if BorgWarner passes the test. Thus, it seems as though BorgWarner shares could have a bit more room to run in the near term.How Does BWA Stack Up to the Competition?Shares of BWA have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Continental AG (CTTAY). CTTAY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of C.Earnings were strong last quarter. Continental AG beat our consensus estimate by 7.69%, and for the current fiscal year, CTTAY is expected to post earnings of $0.85 per share on revenue of $23.02 billion.Shares of Continental AG have gained 5.6% over the past month, and currently trade at a forward P/E of 9.42X and a P/CF of 4.36X.The Automotive - Original Equipment industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWA and CTTAY, even beyond their own solid fundamental situation.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BorgWarner Inc. (BWA): Free Stock Analysis Report Continental AG (CTTAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks