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Ferrari (RACE) Dips More Than Broader Markets: What You Should Know
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Ferrari (RACE - Free Report) closed at $298.79 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Heading into today, shares of the luxury sports car maker had lost 2.92% over the past month, lagging the Auto-Tires-Trucks sector's loss of 2.08% and the S&P 500's loss of 0.12% in that time.
Ferrari will be looking to display strength as it nears its next earnings release. On that day, Ferrari is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 29.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 23.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.05 per share and revenue of $6.35 billion, which would represent changes of +31.53% and +18.31%, respectively, from the prior year.
Any recent changes to analyst estimates for Ferrari should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% higher. Ferrari is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Ferrari is currently trading at a Forward P/E ratio of 42.92. For comparison, its industry has an average Forward P/E of 15.36, which means Ferrari is trading at a premium to the group.
Meanwhile, RACE's PEG ratio is currently 2.73. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ferrari (RACE) Dips More Than Broader Markets: What You Should Know
Ferrari (RACE - Free Report) closed at $298.79 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Heading into today, shares of the luxury sports car maker had lost 2.92% over the past month, lagging the Auto-Tires-Trucks sector's loss of 2.08% and the S&P 500's loss of 0.12% in that time.
Ferrari will be looking to display strength as it nears its next earnings release. On that day, Ferrari is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 29.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 23.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.05 per share and revenue of $6.35 billion, which would represent changes of +31.53% and +18.31%, respectively, from the prior year.
Any recent changes to analyst estimates for Ferrari should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% higher. Ferrari is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Ferrari is currently trading at a Forward P/E ratio of 42.92. For comparison, its industry has an average Forward P/E of 15.36, which means Ferrari is trading at a premium to the group.
Meanwhile, RACE's PEG ratio is currently 2.73. 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. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.