Ferrari Outperforms the Stock Market: What You Need to Know


Ferrari (NYSE:RACE) closed at $302.67 in the most recent trading session, representing a gain of +1.21% from the previous day. This performance outpaced the S&P 500, which had a daily gain of 0.84%. In comparison, the Dow saw a 0.96% increase, and the tech-heavy Nasdaq added 0.81%.

However, over the past month, Ferrari’s shares had experienced a decline of 4.56%, which underperformed the Auto-Tires-Trucks sector’s gain of 5.71% and the S&P 500’s modest 0.19% increase during the same period.

Investors are eagerly awaiting Ferrari’s upcoming earnings release, hoping for strong results. The company is expected to report earnings per share (EPS) of $1.61, reflecting a significant increase of 29.84% compared to the same quarter last year. The latest consensus estimate anticipates quarterly revenue of $1.56 billion, marking a robust 23.93% growth from the previous year.

For the full year, analysts’ expectations are for earnings of $7.05 per share and revenue of $6.35 billion. These figures would represent year-over-year changes of +31.53% and +18.31%, respectively.

It’s worth keeping an eye on recent changes in analyst estimates for Ferrari, as these revisions often reflect current business trends. Positive estimate adjustments typically indicate optimism about the company’s future performance.

Research has shown that estimate revisions are closely linked to short-term stock price movements. Investors can leverage this information by using the Zacks Rank, which considers these estimate changes and offers a straightforward rating system.

Over the past month, the Zacks Consensus EPS estimate for Ferrari has moved 0.25% higher, and the company currently holds a Zacks Rank of #1 (Strong Buy).

Additionally, investors should be aware of Ferrari’s valuation metrics, including its Forward P/E ratio of 42.43. This indicates a premium compared to the industry’s average Forward P/E of 14.67.

Another important metric to consider is Ferrari’s PEG ratio, which currently stands at 2.7. This metric is similar to the well-known P/E ratio but takes into account the expected earnings growth rate. The Automotive – Original Equipment industry has an average PEG ratio of 0.71 as of the latest data.

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