Ferrari (NYSE:RACE) Shares Gained 19% Over the Past Month or So

Ferrari (NYSE:RACE) Shares Gained 19% Over the Past Month or So

Ferrari (NYSE:RACE) Shares Gained 19% Over the Past Month or So

$RACE

A strong increase in Q-1 profits and a good month of F1 racing drove Ferrari’s stock higher in and the 1st 2 days in June.

Shares of Supercar and HyperSupercar maker Ferrari N.V. (NYSE:RACE) are rallying and racing higher, finishing Friday at 90.59.

The Street is asking the Big Q: Why the big gainer for the iconic Italian Ultracar maker?

The Big A: Ferrari’s q-1 earnings report on 4 May Beat, and Ferrari is Beating the pack in F1 racing, solidly ahead in the Drivers and Constructors Championships. Shareholder like that action.

Ferrari reported the best of earnings news in May.

That being a 60% Y-Y increase in profit, along with a 21.6% EBIT profit margin. The profit margin is HyperSuper for an a car maker. Showing the market participants that it has pricing power, pricing power that CEO Sergio Marchionne is fully exercising.

Ferrari’s profit growth and margin were the Big news, and full-year guidance was also stronger than many analysts expected. Add to that Ferrari’s champion F1 racing driver, Sebastian Vettel, brought home a 2nd-place trophy from Spain and won at the Monaco Grand Prix last weekend.

F1 racing is very serious and a powerful IR/PR driver.

Ferrari’s F1 racing team, The Scuderia, is not only the most widely followed sports teams in the world and a Key marketing tool for the brand, it’s also a huge generator of revenue via sponsorships, and Ferrari is at the Top of the Pricing List

 

CEO Marchionne has several profit growth drivers for this luxury brand. I will keep Corsa Clienti informed and updated on how those are driving forward when Ferrari reports its Q-2 earnings on 2 August.

There are no other carmakers on the Planet with the power of Ferrari in the markets: Consumers and Stocks.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 90.59 2 Jun 2017 1.99 90.43 90.84 89.5 762,100
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Very Bullish (0.61) Very Bullish (0.50) Very Bullish (0.62) Very Bullish (0.71)

Have a terrific weekend.

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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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