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Ferrari (RACE) Gains But Lags Market: What You Should Know

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Ferrari (RACE - Free Report) closed at $323.36 in the latest trading session, marking a +0.21% move from the prior day. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.61%.

Prior to today's trading, shares of the luxury sports car maker had gained 6.57% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 24.22% and outpaced the S&P 500's gain of 3.18% in that time.

Wall Street will be looking for positivity from Ferrari as it approaches its next earnings report date. This is expected to be August 2, 2023. On that day, Ferrari is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 17.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 13.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.63 per share and revenue of $6.33 billion, which would represent changes of +23.69% and +17.98%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Ferrari. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.53% higher. Ferrari is currently a Zacks Rank #3 (Hold).

Digging into valuation, Ferrari currently has a Forward P/E ratio of 48.67. This valuation marks a premium compared to its industry's average Forward P/E of 15.25.

Investors should also note that RACE has a PEG ratio of 3.1 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RACE's industry had an average PEG ratio of 0.71 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within 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-moving metrics, and many more, on Zacks.com.


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