Ferrari (RACE) Suffers a Larger Drop Than the General Market: Key Insights
Ferrari (RACE) closed the most recent trading day at $343.29, moving -0.99% from the previous trading session. This change lagged the S&P 500's 0.56% loss on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Prior to today's trading, shares of the luxury sports car maker had lost 0.55% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 4.92% and lagged the S&P 500's gain of 1.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Ferrari in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.55, marking a 25% rise 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.
Investors should also note any recent changes to analyst estimates for Ferrari. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Ferrari is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Ferrari is currently exchanging hands at a Forward P/E ratio of 43.56. This denotes a premium relative to the industry's average Forward P/E of 11.03.
Also, we should mention that RACE has a PEG ratio of 2.72. 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. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.68.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
