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Ferrari (RACE) Dips More Than Broader Market: What You Should Know

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The latest trading session saw Ferrari (RACE - Free Report) ending at $414.03, denoting a -1.31% adjustment from its last day's close. This change lagged the S&P 500's 1.23% loss on the day. Meanwhile, the Dow experienced a drop of 1.36%, and the technology-dominated Nasdaq saw a decrease of 1.4%.

The luxury sports car maker's stock has climbed by 0.69% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 10.64% and lagging the S&P 500's gain of 1.61%.

Market participants will be closely following the financial results of Ferrari in its upcoming release. The company plans to announce its earnings on May 7, 2024. The company's upcoming EPS is projected at $2.04, signifying a 17.24% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.74 billion, up 13.77% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.46 per share and a revenue of $7.14 billion, signifying shifts of +13.25% and +10.6%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ferrari. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.71% upward. As of now, Ferrari holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Ferrari is holding a Forward P/E ratio of 49.62. For comparison, its industry has an average Forward P/E of 12.91, which means Ferrari is trading at a premium to the group.

It is also worth noting that RACE currently has a PEG ratio of 4.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.82.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.

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

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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