Back to top

Image: Bigstock

Ferrari (RACE) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Ferrari (RACE - Free Report) closed at $302.67 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.

Prior to today's trading, shares of the luxury sports car maker had lost 4.56% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 5.71% and the S&P 500's gain of 0.19% in that time.

Investors will be hoping for strength from Ferrari as it approaches its next earnings release. The company is expected to report EPS of $1.61, up 29.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.56 billion, up 23.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.05 per share and revenue of $6.35 billion. These totals would mark changes of +31.53% and +18.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ferrari. Recent revisions tend to reflect the latest near-term business trends. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Ferrari currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Ferrari's current valuation metrics, including its Forward P/E ratio of 42.43. This represents a premium compared to its industry's average Forward P/E of 14.67.

Investors should also note that RACE has a PEG ratio of 2.7 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry currently 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 104, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

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

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

Published in