StockCall Review on BorgWarner and Lear: Auto Parts Manufacturing Stocks on the Roll

 StockCall Review on BorgWarner and Lear: Auto Parts Manufacturing Stocks on
                                   the Roll

  PR Newswire

  LONDON, February 15, 2013

LONDON, February 15, 2013 /PRNewswire/ --

The auto sector is getting back to its feet and along with it ancillary auto
part segment has also been blooming. The increase in auto demand lead to an
increase in demand for auto parts as well. The effect is clearly visible on
stocks like Lear Corp. (NYSE: LEA) which has shown considerable growth this
year. The company also plans to pay higher dividend. However, the story is not
same for all auto parts manufacturers. BorgWarner Inc. (NYSE: BWA) has been
facing lower demand. However, the company plans to boost its profits by
containing its costs. StockCall analysts initiated preliminary technical
research on BorgWarner and Lear Corp. These free reports are accessible by
signing today at

BorgWarner Reports Q4 Results

BorgWarner stock appreciated 5 percent so far this year. However, investors
can hope to receive a good value for their investment as the company is
planning to come up with a stock repurchase program. BorgWarner purchased 1.5
million of its shares during the fiscal fourth quarter and it is likely to
continue with the program. The free technical analysis on BorgWarner Inc. is
available by signing up at 

For its fiscal fourth quarter, the company earned $1.16 per share in net
income. It beat consensus estimate of $1.13 per share. However, its revenue
declined 3 percent to $1.72 billion. The company has subdued outlook for the
first quarter and it is looking to curtail its production to counter lower
demand. This is likely to have adverse impact on its stock price.

BorgWarner is keen to go the M&A route to grow, but it has not been able to
finalize the deals. The company attributed the failure to general weakness in
the economy. It is also looking to boost its margins in order to improve
profitability. The company currently has its operating margin at 10.9 percent.
BorgWarner aims to pull the margin up to 11.5 percent or higher. While the
company deals with lower demand, it seeks to cut its costs. The auto part
maker's efforts may provide a fillip to its stock price.

Lear Corp. Makes New High

Lear Corp.'s stock is on a bull's run and is trading near its 52-week high.
The stock appreciated 17 percent so far this year. It is also seeing increased
interest from hedge funds as according to the filed 13Fs, Marcato Capital
Management owns over 5 million shares of the firm. Hedge Fund interest is
generally a positive sign for the growth of a stock. Register now to download
the free research on Lear Corp. at 

Lear is an auto part manufacturing company and it specializes in electric
distribution and seat systems. The company increased its fourth quarter
revenue by 6 percent. It also expects to earn $4.81 per share in net income
for FY2013. The positive outlook ensures that the stock will get to see more

The stock's Price/Earnings ratio is in-line with the industrial average,
making it a reasonably priced buy. Lear also offers good dividend as it
recently increased its quarterly dividend by 21 percent. It currently pays 17
cents per share every quarter. The company's stock buyback program further
adds to the attractiveness of the stock. Lear management has already
authorized shares repurchase program worth $1 billion and it plans to buy $600
million worth of stock in 2013 alone. Overall, the stock offers something for
everyone. It combines good capital appreciation with healthy dividends.

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