Ferrari (NYSE:RACE) Performs on the Track and in the Market

Ferrari (NYSE:RACE) Performs on the Track and in the Market

$RACE

FLASH: Ferrari is the Star performer in the automotive sector

Notably, except for a brief pullback in Q-4 of Y 2018, Ferrari N.V. (NYSE:RACE) is running on all cylinders full throttle the tracks, and in stock markets since its IPO in October 2015

HQ’d in Maranello, Italy, founded in Y 1947, Ferrari designs, engineers, produces and sells luxury performance sports and racing cars. In addition to its racing and Supercar manufacturing operations, Ferrari licenses its brand to various producers and retailers of luxury and lifestyle goods.

Plus, the company operates 2 Ferrari-themed amusement parks: Ferrari World in Abu Dhabi, the United Arab Emirates and Ferrari Land at PortAventura near Barcelona, Spain.

Since opening its 1st Ferrari Store retail location in Maranello in Y 2002, the company expanded its operation to approximately 50 stores worldwide. Moreover, the Maranello Outfit maintains/supplies a network of 180 dealerships in 60 markets globally.

Since separating from its parent company Fiat Chrysler Automobiles N.V. (NYSE:FCAU) Ferrari has more than 2X’d its share price and has boosted its annual dividend payout every year.

Additionally, the company’s CEO Louis Camilleri declared last September the company’s plan to introduce 15 new car models and 2X its profit by Y 2022.

The company also announced its plans to introduce a FUV, a utility vehicle called the Purosangue, the thoroughbred.

The FUV is expected to share its drive-train with 60% of the Ferrari’s model lineup in Y 2022, which will offer better economies of scale and cost streamlining towards the higher profitability goal.

Another Key initiative involves expanding its powertrain lineup with smaller, more cost-effective and more fuel efficient V-6 engines. This will mark a major departure from the company’s traditional reliance on high-output V-12 and V-8 engines and should open additional markets for the company’s expansion.

Ferrari met or exceeded all it goals in FY 2018. The company boosted its volume more than 10% and delivered more than 9,000 vehicles in 1 year for the 1st time in its 70-year history. Additionally, net earnings increase 20% to $730-M and EPS increased 21% to $3.84 each.

The company’s expectations for Y 2019 are 3% net revenue growth to $3.96-B and 6% adjusted EPS advancement into the $3.96 to $4.18 range

Since its Y 2015 IPO, the company has increased its annual dividend payout every year. For its most recent dividend hike, the company enhanced its annual distribution 45% from $0.803 to the current $1.164.

Over the past 4 years, the company advanced its annual dividend payout amount nearly 125%, which corresponds to an average annual growth rate of 22.3%.

Since its 52 wk low on 24 December 2018, the share price has gained more than 42%. Furthermore, since the IPO in October 2015, the share price has risen more than 160%

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 140.58, then none, as the stock is very oversold, MACD and Stochastics 3 of our Key indicators is Very Bullish in here.

Stay tuned…

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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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