Back to top

Bear Of The Day: Ferrari (RACE)

Read MoreHide Full Article

Ferrari (RACE - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.

Let's face it, few of us will ever even know someone that owns a Ferrari, but I know David Bartosiak and he has owned 3 Corvettes in the last 4 years and it is his dream to own one.  I think he achieves the dream in a few more years... like maybe 10.

RACE has been on a huge run over the last year or two, but the brakes were pumped at the most recent earnings event.  

On a recent conference call, new CEO Camilleri reportedly described the targets set by his predecessor, Marchionne, as "aspirational" and said that they are accompanied by "risks and opportunities."

This caused a dramatic pessimistic investor reaction.  The company stated that they will update their strategy in the fall.

Estimates

Analysts, however, are not waiting for the fall. They are updating models and numbers are headed lower.  The Zacks Consensus Estimate for the current quarter slid from $0.93 to $0.77.  The full year number came in to $3.17 from $3.64.

The 2019 Zacks Consensus Estimate fell from $3.94 to $3.44.

When estimates fall like that, the Zacks Rank tends to follow.

Chart

 

Ferrari N.V. Price and Consensus

Ferrari N.V. Price and Consensus | Ferrari N.V. Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ferrari N.V. (RACE) - free report >>

More from Zacks Bear of the Day

You May Like