Ferrari N.V. (RACE) Hits Fresh High: Is There Still Room to Run?
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2025, Ferrari reported EPS of $2.42 versus consensus estimate of $2.36 while it beat the consensus revenue estimate by 1.99%.
For the current fiscal year, Ferrari is expected to post earnings of $10.27 per share on $8.2 in revenues. This represents a 12.12% change in EPS on a 13.56% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $9.04 in revenues. This represents a year-over-year change of 12.59% and 10.17%, respectively.
Valuation Metrics
While Ferrari has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ferrari has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 50.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.3X. On a trailing cash flow basis, the stock currently trades at 53X versus its peer group's average of 7.4X. Additionally, the stock has a PEG ratio of 5.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Ferrari currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ferrari passes the test. Thus, it seems as though Ferrari shares could still be poised for more gains ahead.
How Does RACE Stack Up to the Competition?
Shares of RACE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Visteon Corporation (VC). VC has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Visteon Corporation beat our consensus estimate by 41.18%, and for the current fiscal year, VC is expected to post earnings of $7.78 per share on revenue of $3.67 billion.
Shares of Visteon Corporation have gained 24.9% over the past month, and currently trade at a forward P/E of 14.69X and a P/CF of 7.9X.
The Automotive - Original Equipment industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RACE and VC, even beyond their own solid fundamental situation.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
Visteon Corporation (VC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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