Here's the Reason BorgWarner (BWA) Stands Out as a High-Growth Stock

Maximizing Stock Market Opportunities with Zacks Premium

Whether you're new to investing or have years of experience, making the most of the stock market and investing with assurance are universal ambitions. Zacks Premium provides a variety of resources to help you achieve these goals.

This well-regarded investment research platform empowers you to make informed decisions by offering daily updates on the Zacks Rank and Industry Rank, access to the exclusive #1 Rank List, in-depth Equity Research reports, and advanced stock screening tools.

Subscribers also benefit from the Zacks Style Scores system.

Understanding Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores are additional metrics that evaluate stocks using three popular investment strategies. These scores are designed to help investors identify stocks with the highest potential to outperform the market over the next month.

Each stock receives a grade—A, B, C, D, or F—based on its value, growth, and momentum attributes. Higher grades indicate a greater likelihood of strong performance, with A being the highest and F the lowest.

The Style Scores are divided into four main types:

Value Score

Value investors seek out undervalued stocks before the broader market recognizes their potential. The Value Score uses metrics such as P/E, PEG, Price/Sales, and Price/Cash Flow ratios to pinpoint stocks that are attractively priced and offer significant discounts.

Growth Score

Growth-focused investors prioritize companies with robust financial health and promising future prospects. The Growth Score analyzes factors like projected and historical earnings, revenue, and cash flow to identify businesses poised for sustained expansion.

Momentum Score

Momentum investing is built on the principle that trends can be powerful allies. This approach leverages indicators such as recent price changes and shifts in earnings estimates to determine when a stock is gaining or losing momentum, helping investors time their entries and exits.

VGM Score

For those seeking a comprehensive evaluation, the VGM Score combines value, growth, and momentum into a single rating. This composite score highlights stocks that excel across all three dimensions and is especially effective when used alongside the Zacks Rank.

Integrating Style Scores with the Zacks Rank

The Zacks Rank is a proprietary model that relies on changes in earnings estimates to guide investors toward building successful portfolios.

Historically, stocks rated #1 (Strong Buy) by Zacks have delivered an impressive average annual return of +23.86% since 1988—more than twice the S&P 500's performance. However, with over 200 stocks holding a Strong Buy rating and another 600 rated as #2 (Buy) at any time, narrowing down your choices can be daunting.

This is where the Style Scores prove invaluable.

To maximize your chances of success, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If you’re considering a stock with a #3 (Hold) rating, ensure it also has high Style Scores to enhance its potential.

Always pay attention to the direction of earnings estimate revisions, as the Style Scores are designed to work in tandem with the Zacks Rank.

For example, even if a stock with a #4 (Sell) or #5 (Strong Sell) rating has high Style Scores, a negative earnings outlook suggests a higher risk of price decline.

In summary, owning more stocks with top Zacks Ranks and high Style Scores increases your likelihood of achieving strong returns.

Featured Stock: BorgWarner (BWA)

BorgWarner, headquartered in Michigan, is a global innovator in clean and efficient technologies for combustion, hybrid, and electric vehicles. Their product lineup includes four-wheel and all-wheel drive transfer cases—mainly for light trucks and SUVs—as well as automatic transmission and timing chain systems. These offerings are designed to enhance vehicle performance, efficiency, stability, and air quality, and are distributed worldwide to major automotive manufacturers.

BWA currently holds a #2 (Buy) Zacks Rank and boasts an A rating for its VGM Score.

The company is also attractive to growth-oriented investors. BWA has achieved an A in the Growth Style Score category, with projected earnings growth of 5.1% for the current fiscal year.

Over the past two months, five analysts have raised their earnings forecasts for fiscal 2026, and the Zacks Consensus Estimate has climbed by $0.13 to $5.16 per share. BWA has also delivered an average earnings surprise of +12.7%.

With its strong Zacks Rank and leading Growth and VGM Scores, BWA stands out as a compelling choice for investors.

Top Analyst’s “Single Best Pick to Double”

Out of thousands of stocks, five Zacks experts each select their top candidate for a potential 100% gain in the coming months. From these, Director of Research Sheraz Mian singles out one with the highest upside potential.

This particular company, which targets millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price could present a timely buying opportunity. While not every elite pick achieves extraordinary results, this stock may outperform previous Zacks selections like Nano-X Imaging, which soared +129.6% in just over nine months.