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Is Ferrari Stock Poised to Race Higher?

Benefiting from its strong brand and pricing power, Ferrari (RACE - Free Report)  stock is up a respectable +13% in 2025 and is sitting on gains of over +180% in the last three years.

Trading over $480, RACE is only 5% from its 52-week and all-time high of $509 a share, which makes it a worthy topic of whether the renowned sports car designers' stock could be in store for more upside.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Ferrari’s Strong Financial Metrics & Fleet Expansion

As illustrated by the green arrows in the above Price, Consensus and Surprise chart, Ferrari was able to exceed its Q1 expectations in May and has now surpassed the Zacks EPS Consensus for 19 consecutive quarters.

Most intriguing when highlighting its strong Q1 results was that Ferrari saw double-digit growth on all of its key metrics, including revenues, EBITDA (profitability), and free cash flow. Furthermore, Ferrari’s order book is full for the rest of 2025 due to overwhelming demand for its supercar “spider” models, which include the 458, 360, and F8.

Ferrari has also made significant strides in evolving its fleet into hybrid versions, embodying its Spider models, along with other popular models such as the 499P, 296 GTB, 296 GTS (Convertible Version), and the 296 Challenge which is a track-focused race car that features significant modifications for aerodynamics, handling, and performance.  

Notably, Ferrari plans to launch its first fully electric vehicle in October during its Capital Markets Day. This will allow Ferrari to compete in the supercar EV space against Stellantis’s (STLA - Free Report)   Maserati GranTurismo Folgore and Nio’s (NIO - Free Report)  EP 9, while potentially being ahead of Tesla’s (TSLA - Free Report)  long-awaited Roadster.  

 

RACE P/E Valuation & EPS Revisions

Although it’s expected, at 49.4X forward earnings, Ferrari stock does trade at a noticeable premium to the broader market and its Zacks Automotive-Original Equipment Industry average of 22.1X. However, RACE does trade nicely beneath its decade-long high of 68.7X forward earnings and closer to the median of 40.2X during this period.

Zacks Investment Research
Image Source: Zacks Investment Research

Helping to justify Ferrari’s P/E premium is that fiscal 2025 and FY26 EPS estimates are up over 4% in the last 60 days. Furthermore, Ferrari’s annual earnings are now expected to increase 6% this year and are projected to rise another 12% in FY26 to $10.89 per share.

It’s also noteworthy that FY26 EPS projections would reflect more than 100% growth over the last five years, with Ferrari’s earnings at $5.36 a share in 2022.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Bottom Line

Correlating with impressive fleet expansion and high demand for its supercars, Ferrari stock has made its way onto the coveted Zacks Rank #1 (Strong Buy) list. To that point, the trend of positive earnings estimate revisions does suggest RACE could have more upside in the near future, with many analysts remaining bullish on Ferrari’s strong operational performance, which prioritizes quality over quantity.

At the moment, the Average Zacks Price Target of $517 a share suggests Ferrari stock could eventually eclipse its all-time highs and offers 8% upside from current levels.


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