Ferrari (RACE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Ferrari (RACE) closed at $350.53, marking a -0.25% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.07%.
Shares of the luxury sports car maker witnessed a loss of 5% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 1.59% and the S&P 500's gain of 3.98%.
The investment community will be paying close attention to the earnings performance of Ferrari in its upcoming release. The company is expected to report EPS of $1.55, up 25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 14.92% from the year-ago period.
It's also important for investors to be aware of any recent modifications 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Ferrari boasts a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Ferrari currently has a Forward P/E ratio of 44.15. This denotes a premium relative to the industry's average Forward P/E of 11.56.
Meanwhile, RACE's PEG ratio is currently 2.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 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.
To follow RACE in the coming trading sessions, be sure to utilize Zacks.com.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
