Core Insights - Value investors often use the price-to-earnings (P/E) ratio to identify value stocks, but for loss-making companies with negative P/E ratios, the price-to-sales (P/S) ratio is utilized to assess their true value [1] - The price-to-book (P/B) ratio, while less commonly used, serves as an effective tool for identifying low-priced stocks with high return potential [1] P/B Ratio Calculation - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with promising growth prospects [2] - A P/B ratio of less than one indicates that a stock is undervalued, while a ratio greater than one suggests it may be overvalued [5][6] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [3] - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [4] Limitations of P/B Ratio - The P/B ratio is particularly relevant for industries like finance and manufacturing but can be misleading for companies with significant R&D expenses or high debt [8] - A P/B ratio of less than one may indicate weak returns on assets or overstated assets, while a ratio above one could suggest the stock is a takeover target [7] Screening Parameters for Low P/B Stocks - Stocks with a P/B ratio lower than the industry median are considered attractive for potential gains [11] - Additional screening includes P/S and P/E ratios below industry medians, a PEG ratio less than 1, and a minimum stock price of $5 [12][13][14] Recommended Low P/B Stocks - AES Corporation (AES) is a global power company with a projected 3-5 year EPS growth rate of 11.2% and a Zacks Rank of 2 [15] - BorgWarner (BWA) specializes in clean technology for vehicles, with a projected EPS growth rate of 10.2% and a Zacks Rank of 2 [16] - EnerSys (ENS) manufactures industrial batteries, holding a Zacks Rank of 1 and a projected EPS growth rate of 15.0% [17] - PG&E Corporation (PCG) is California's largest utility, with a projected EPS growth rate of 15.9% and a Zacks Rank of 2 [18] - Keros Therapeutics (KROS) is a biotech firm with a projected EPS growth rate of 36.5% and a Zacks Rank of 1 [19]

Company Overview - BorgWarner, Inc. is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, producing products such as four-wheel-drive and all-wheel-drive transfer cases, automatic transmission, and timing chain systems aimed at improving vehicle performance and air quality [11]. Investment Potential - BorgWarner has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid investment potential [12]. - The company is forecasted to achieve year-over-year earnings growth of 5.8% for the current fiscal year, supported by seven analysts revising their earnings estimates higher in the last 60 days [12]. - The Zacks Consensus Estimate for BorgWarner's earnings has increased by $0.31 to $4.57 per share, with an average earnings surprise of +13.9% [12][13].

Company Overview - BorgWarner, Inc. is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, focusing on products that enhance vehicle performance and air quality [11] - The company produces four-wheel-drive and all-wheel-drive transfer cases, automatic transmission systems, and timing chain systems, primarily for light trucks, SUVs, and commercial transportation products [11] Investment Potential - BorgWarner has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid investment potential [12] - The company is particularly appealing to growth investors, with a Growth Style Score of A and a forecasted year-over-year earnings growth of 5.8% for the current fiscal year [12] - Recent upward revisions from seven analysts in the last 60 days have increased the Zacks Consensus Estimate for earnings to $4.57 per share, reflecting a positive outlook [12] - BorgWarner has demonstrated an average earnings surprise of +13.9%, further supporting its growth potential [12] Summary of Style Scores - The VGM Score combines value, growth, and momentum characteristics, making it a comprehensive indicator for evaluating stocks [6] - A stock with a strong Zacks Rank and high Style Scores is more likely to outperform the market, which applies to BorgWarner given its current ratings [9][10]

Company Overview - BorgWarner, Inc. is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, producing products such as four-wheel-drive and all-wheel-drive transfer cases, automatic transmission, and timing chain systems aimed at improving vehicle performance and air quality [12]. Investment Analysis - BorgWarner has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [13]. - The company has a Value Style Score of A, supported by attractive valuation metrics, including a forward P/E ratio of 9.59, which is appealing to value investors [13]. - Recent upward revisions in earnings estimates by six analysts for fiscal 2025 have led to an increase in the Zacks Consensus Estimate by $0.32 to $4.56 per share, with an average earnings surprise of +13.9% [13][14].