Borgwarner (BWA): Juicy Buy the Dip Opportunity

Many of you will recognize Borgwarner (BWA) as a leading auto parts firm. And that is most certainly true. However, their February 11th earnings beat provided something even more interesting. 

Beyond the beat and raise earnings report they also shared news of an agreement with  TurboCell to supply a highly modular turbine generator system focused on AI data centers. 

Yes, this is not just one of the best run auto industry companies…but is now also a stealth AI play. 

This had analysts scrambling to increase earnings projections for the future which naturally raised the fair value targets. The average now being $68 with a street high of $82 from Deutsche Bank which implies 62% upside from the current price in the low $50’s. 

The Zen Ratings also smiles broadly on BWA given this stellar report card: 

Top 27% Value

Top 25% AI Factors

Top 21% Momentum

Top 16% Safety

Top 11% Sentiment

Top 10% Financials

Top 7% Growth

As you can see they rank well for all 7 component grades of the Zen Ratings. And thus with no weakness in sight the overall rating is not just A (top 5%). But actually in the top 1% of all stocks we review. 

Here is another feather in their cap. Once all the smoke clears from the Iran conflict and oil prices get contained, then the Fed will most likely be back on the rate cut path. 

Lower rates are good for all industrials because it lowers the massive cost of borrowing that goes hand in hand with manufacturing. 

Secondly, lower rates is a catalyst for more car buying which will no doubt result in extra growth for BWA. 

And third, when investors get back to loving AI stocks (which you know they will) then BWA gives us that extra oomph to climb up to that street high target of $82 and likely beyond in the months and years ahead. 

That is why I highly advise you to buy the dip on Borgwarner (BWA) today. 

What To Do Next?

Borgwarner (BWA) is just one of 20 stellar stocks found in my Zen Investor portfolio.

And that portfolio is up +10.54% so far in 2026…yes even as the S&P 500 is in the tank.  

How is that possible? 

Investors are running away from overvalued junk and clamoring towards undervalued stocks with strong fundamentals. 

EXACTLY what the Zen Ratings model focuses on. 

EXACTLY what I have been doing as an investor over the last 40 years.  

To learn more about my unique investment process…and how to get access to my current top 20 stocks…just click the link below: 

Discover Zen Investor & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.