The most recent trading session ended with Ferrari (RACE) standing at $420.74, reflecting a -0.24% change from the previous trading day’s close. The stock outperformed the S&P 500, which recorded a loss of 0.65% for the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 1.16%.
The luxury sports car stock rose 9.5% in the past month, leading the Auto-Tires-Truck sector’s gain of 2.76% and the S&P 500’s gain of 3.4%.
Analysts and investors alike will be watching Ferrari’s performance in its upcoming earnings release. The company’s earnings per share (EPS) is expected to be $2, reflecting a 14.94% increase from the same quarter last year. Meanwhile, our latest consensus estimate calls for revenue of $1.73 billion, up 13.08% from the previous quarter.
For the annual period, the Zacks Consensus Estimates forecast earnings of $8.31 per share and revenue of $7.01 billion, representing changes of +11.24% and +8.59%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Ferrari. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive rating revisions reflect analyst optimism about the company’s business and profitability.
Our research demonstrates that these adjustments in valuations are directly related to near-term stock price performance. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides a reasonable rating system.
The Zacks Rank system, which ranges between #1 (Strong Buy) and #5 (Strong Sell), has an impressive record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there has been no change in the Zacks Consensus EPS estimate. Ferrari currently sports a Zacks Rank of #3 (Hold).
Investors should also note Ferrari’s current valuation metrics, including its Forward P/E ratio of 50.75. This represents a premium compared to its industry’s average Forward P/E of 13.1.
We can additionally observe that RACE currently boasts a PEG ratio of 5.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. By the end of yesterday’s trading, the Automotive – Original Equipment industry had an average PEG ratio of 0.86.
The Automotive – Original Equipment industry is part of the Cars-Tyres-Trucks sector. This group has a Zacks Industry Rank of 145, placing it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies in each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock metrics, and many more, at Zacks.com.
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Ferrari NV (RACE): Free Analysis Report
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