Ferrari (RACE) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, Ferrari (RACE) reached $333.30, with a -1.14% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
Shares of the luxury sports car maker have appreciated by 0.76% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 7% and lagging the S&P 500's gain of 2.08%.
The upcoming earnings release of Ferrari will be of great interest to investors. The company's earnings report is expected on February 1, 2024. The company's upcoming EPS is projected at $1.55, signifying a 25% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.61 billion, showing a 14.92% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Ferrari. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Ferrari is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, Ferrari is presently trading at a Forward P/E ratio of 41.45. This expresses a premium compared to the average Forward P/E of 11.2 of its industry.
Investors should also note that RACE has a PEG ratio of 2.58 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Original Equipment industry had an average PEG ratio of 0.67 as trading concluded yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
