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Ferrari (RACE) Beats Stock Market Upswing: What Investors Need to Know
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Ferrari (RACE - Free Report) closed the latest trading day at $366.75, indicating a +0.82% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
Shares of the luxury sports car maker have appreciated by 8.29% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 6.26% and the S&P 500's gain of 4.91%.
The upcoming earnings release of Ferrari will be of great interest to investors. The company is expected to report EPS of $1.55, up 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.61 billion, up 14.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.07 per share and a revenue of $6.35 billion, indicating changes of +31.9% and +18.37%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ferrari. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 2.78% lower. As of now, Ferrari holds a Zacks Rank of #3 (Hold).
Digging into valuation, Ferrari currently has a Forward P/E ratio of 51.49. This denotes a premium relative to the industry's average Forward P/E of 13.36.
Meanwhile, RACE's PEG ratio is currently 3.21. 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. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.63.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons 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 (RACE) Beats Stock Market Upswing: What Investors Need to Know
Ferrari (RACE - Free Report) closed the latest trading day at $366.75, indicating a +0.82% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
Shares of the luxury sports car maker have appreciated by 8.29% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 6.26% and the S&P 500's gain of 4.91%.
The upcoming earnings release of Ferrari will be of great interest to investors. The company is expected to report EPS of $1.55, up 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.61 billion, up 14.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.07 per share and a revenue of $6.35 billion, indicating changes of +31.9% and +18.37%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ferrari. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 2.78% lower. As of now, Ferrari holds a Zacks Rank of #3 (Hold).
Digging into valuation, Ferrari currently has a Forward P/E ratio of 51.49. This denotes a premium relative to the industry's average Forward P/E of 13.36.
Meanwhile, RACE's PEG ratio is currently 3.21. 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. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.63.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons 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.