Ferrari (RACE) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, Ferrari (RACE) closed at $437.97, marking a -0.37% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Heading into today, shares of the luxury sports car maker had gained 4.83% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 0.04% and the S&P 500's gain of 2.67% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Ferrari in its upcoming earnings disclosure. On that day, Ferrari is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 17.24%. Alongside, our most recent consensus estimate is anticipating revenue of $1.74 billion, indicating a 13.77% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.46 per share and revenue of $7.14 billion, which would represent changes of +13.25% and +10.6%, respectively, from the prior year.

Investors might also notice 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% higher. Right now, Ferrari possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Ferrari is presently being traded at a Forward P/E ratio of 51.99. This denotes a premium relative to the industry's average Forward P/E of 12.84.

We can additionally observe that RACE currently boasts a PEG ratio of 5.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.87.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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