Impressive Results and Improved Guidance Lifted BorgWarner (BWA) in Q3

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy highlighted stocks such as BorgWarner Inc. (NYSE:BWA). BorgWarner Inc. (NYSE:BWA) is a leading provider of solutions for combustion, hybrid, and electric vehicles. The one-month return of BorgWarner Inc. (NYSE:BWA) was -1.37%, and its shares gained 27.70% of their value over the last 52 weeks. On November 19, 2025, BorgWarner Inc. (NYSE:BWA) stock closed at $43.11 per share, with a market capitalization of $9.329 billion.

SCCM Value Equity Strategy stated the following regarding BorgWarner Inc. (NYSE:BWA) in its third quarter 2025 investor letter:

BorgWarner Inc. (NYSE:BWA) (+31.8%) delivered impressive second quarter results that exceeded expectations and led management to raise full-year guidance. The company announced new turbocharger and high-voltage coolant heater programs in Europe and North America, including its first hybrid platform award, and expanded its electrification footprint in China with contracts for its electric cross-differential system and dual inverter. BorgWarner also raised its quarterly dividend by 55%, reflecting confidence in cash generation and shareholder returns. Continued momentum in electrification and disciplined execution supported the stock’s robust performance.”

Is BorgWarner Inc. (BWA) the Undervalued Cyclical Stock to Buy Right Now?

BorgWarner Inc. (NYSE:BWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held BorgWarner Inc. (NYSE:BWA) at the end of the second quarter, up from 34 in the previous quarter. In the third quarter of 2025, BorgWarner Inc. (NYSE:BWA) reported approximately $3.6 billion in sales, which was up 2% year-over-year, excluding foreign exchange. While we acknowledge the risk and potential of BorgWarner Inc. (NYSE:BWA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BorgWarner Inc. (NYSE:BWA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered BorgWarner Inc. (NYSE:BWA) and shared the list of best electric vehicle supply chain stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.