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Ferrari (RACE) Stock Moves -0.24%: What You Should Know

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In the latest market close, Ferrari (RACE - Free Report) reached $309.07, with a -0.24% movement compared to the previous day. This move was narrower than the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.63%.

The luxury sports car maker's shares have seen an increase of 3.6% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 0.98% and the S&P 500's loss of 2.35%.

The investment community will be closely monitoring the performance of Ferrari in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. The company's earnings per share (EPS) are projected to be $1.64, reflecting a 32.26% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 23.41% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.01 per share and a revenue of $6.28 billion, signifying shifts of +30.78% and +17.1%, respectively, from the last year.

It is also important to note the recent changes 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.6% lower. Ferrari is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Ferrari is holding a Forward P/E ratio of 44.23. Its industry sports an average Forward P/E of 13.27, so one might conclude that Ferrari is trading at a premium comparatively.

It is also worth noting that RACE currently has a PEG ratio of 2.81. 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. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.72 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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