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Bull Of The Day: Ferrari (RACE

Bull Of The Day: Ferrari (RACE

Globe and Mail2 days ago
Ferrari (RACE) is a Zacks Rank #1 (Strong Buy) that has an D for Value and an A for Growth. A recent earnings beat has this stock in the spotlight. This luxury auto maker will report earnings again at the end of the month and with the economy remaining resilient we might see a boost in sales. If that continues the stock will grow into is rather high valuation. Let's learn more about why this stock is the Bull of the Day.
Description
Ferrari NV is a holding company, which engages in the design, engineering, production, and sale of luxury sports cars. The firm's models include the F12Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, the LaFerrari Hybrid, LaFerrari, and the FF four-wheel drive. It participates in car racing such as Formula One. The company was founded by Enzo Anselmo Ferrari in 1939 and is headquartered in Maranello, Italy.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Ferrari (RACE) has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 10.78% over the last year.
The most recent earnings print saw the company post $2.42 when the consensus was at $2.36. That 6 cent beat translates into a positive earnings surprise of 2.5%.
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Ferrari (RACE)).
The full year 2025 has seen a big move, going from $9.60 to $10.25 over the last 60 days.
2026 has increased from $10.81 to $11.61 over the same time period.
Growth
There is good growth projected for Ferrari (RACE). This fiscal year analysts are expecting $8.2B in revenue which would be good for 13.5% topline growth.
Next fiscal year, the consensus is calling for $9.04B and that would be good for 10.2%.
Valuation
The forward PE for Ferrari (RACE) is up there at 47.5x, but that number would drop with higher earnings. Given the solid revenue growth, that multiple could fall further in margins improve. Price to book is at 31.35x and that is high for an auto manufacturer so the value conscious investors will not be interested in this stock. Price to sales comes it at a lofty 16x.
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