Why the Market Dipped But Ferrari (RACE) Gained Today
Ferrari (RACE) closed the latest trading day at $340.17, indicating a +1.44% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Shares of the luxury sports car maker witnessed a loss of 0.48% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 12.12% and underperforming the S&P 500's gain of 3.05%.
The investment community will be paying close attention to the earnings performance of Ferrari in its upcoming release. The company is slated to reveal its earnings 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. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 14.92% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Ferrari. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.5% fall in the Zacks Consensus EPS estimate. Currently, Ferrari is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Ferrari is presently being traded at a Forward P/E ratio of 42.29. This represents a premium compared to its industry's average Forward P/E of 11.51.
We can also see that RACE currently has a PEG ratio of 2.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.69.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 44% of all industries, numbering over 250.
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.
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
