Ferrari (NYSE:RACE) Stock is Beating the Market

Ferrari (NYSE:RACE) Stock is Beating the Market

$RACE

On Momentum Investing: Momentum investing is all about the idea of following a stock’s recent trend, which can be in either direction. In the ‘long’ context, investors will essentially be “buying high, but hoping to sell even higher.” And for investors following this methodology, taking advantage of trends in a stock’s price is Key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock characteristic, it can be tough to define.

Looking at Ferrari

Ferrari (NYSE:RACE) is currently is in the momentum stock Top tier category and is rated a Strong Buy because of it impressive track record as it has and still is outperforming the overall market.

Looking at RACE to see if this luxury sports car maker wil holds up.

Having a at a stock’s short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area according the acceptable guages.

Ferrari shares are up 3.44% over the past week to date, Shares are looking well long term too, as the monthly price change is + 6.72%

While any stock can see its price rise, but it takes a winner to consistently beat the market.

The longer term price metrics, such as performance over the past 3 months or 52 weeks are Key.

Over the past Quarter, Ferrari have risen nearly 25% %, and are up 13.56% in the last year. In comparison, the S&P 500 has only moved 12.64% and 11.26%, respectively.

Also take note of Ferrari’s average 20-Day Trading Volume. Volume is a useful item in many ways, and the 20-Day TV average establishes a good price-to-volume baseline, as a rising stock with above average volume is generally Bullish (and visa-versa Bearish) and Ferrari is averaging 298,819 shares for the last 20 days. And hang on Ferrari pays a dividend.

Earnings estimates are significant too and Ferrari is looking good there too.

Over the past 2 months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost the consensus estimate, increasing from $4.04 to $4.05 in the past 60 days. Looking at the next FY, 1 estimate has moved upwards while there have been no downward revisions in the same frame. Source Ferrari

So, should not come as a surprise then that Ferrari is an #1 HeffX-LTN Strong Buy stock. Ferrari should be on the short list of all momentum players.

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.

Ferrari is the Aristocrat of the automotive sector.

HeffX-LTN overall technical outlook for RACE is Bullish across the board, and there is very little resistance here and none above 140.26. All of our Key indicators are 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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