Why This Stock Could Be Set to Surge

Updated

In the following video, Fool analysts Brendan Byrnes and Andrew Tonner discuss why auto-parts maker Borg Warner Automotive (NYSE: BWA) may be poised for a big run.

BorgWarner, a maker of turbochargers and dual clutch systems, has seen its share price get dragged down by a sluggish economy in Europe, where it does a lot of business.

But with a growing demand on auto manufacturers to produce more fuel-efficient vehicles, the company's future looks bright. The move to fuel efficiency will create a greater demand for turbochargers and other products BorgWarner makes, and the company is supplying those parts to just about every auto manufacturer. That means it can succeed no matter how well individual carmakers such as Ford (NYSE: F) or General Motors (NYSE: GM) do.


Borg Warner should also benefit from growth of car sales in China and India in years to come, Brendan says.

BorgWarner is a parts supplier that could be ready for big growth. But there are also opportunities in the automakers themselves. Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But Ford's stock seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.

The article Why This Stock Could Be Set to Surge originally appeared on Fool.com.

Andrew Tonner and The Motley Fool own shares of Ford. Brendan Byrnes owns shares of Ford and General Motors. Motley Fool newsletter services recommend BorgWarner, Ford, and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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