Ferrari (NYSE:RACE) is the Star Performer in the Automotive Sector

Ferrari (NYSE:RACE) is the Star Performer in the Automotive Sector

$RACE

FLASH: Ferrari stock is up over 45% from the December lows.

I see Ferrari (NYSE:RACE) marking all-time highs this year,but stock is pausing to refresh as some pundits are calling for profit taking.

So far this year it has been uneventful year, as Ferrari has been the star performer within the group.

The stock is up over 45% from its December lows Vs a much less impressive 10% return for its industry group in which it has no peers.

Toyota (NYSE:TM), Nissan (OTCPK:NSANY), and Fiat Chrysler (NYSE:FCAU) are barely up single digits, and Tesla (TSLA) is a disaster.

There isno disputing Ferrari is the leader of the group, and again, the Maranello Outfit has no peers.

The major auto manufacturers group has put up a 30% return since the Y 2016 lows, but luxury star Ferrari enjoys a return 10X+, at 325%.

This exceptional performance is thanks to a powerful earnings trend and consistent double-digit revenue growth.

Ferrari managed to put up average annual EPS growth of 34% between FY-2015 and FY-2018, but this growth has slowed a bit since. FY 2019 EPS are expected to mark a 3% increase based on current estimates, and FY-2020 EPS growth is expected to come in at 8%.

There’s no question that this growth is respectable and very positive.

Ferrari is introducing several new models this year and sells out before introduction, the demand is high world wide. Plus, the company has an active stock buyback program in place with it’s bid in the market.

Tune out the Noise, Ferrari has a way of surprising…

Ferrari is the Aristocrat of the automotive sector.

The iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Neutral to Bullish there is resistance now at 136.58 as some analysts are recommending taking profits in here and the stock is very oversold, Stochastics 1 of our Key indicators is Very Bullish in here.

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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