FLASH: Momentum investing means “buying high, but hoping to sell even higher.”
Ferrari (NYSE:RACE) is a company that is an momentum investment, we have seen high price change and earnings estimate revisions, 2 Key elements of momentum scoring.
Ferrari currently has a Strong Buy ranking here at HeffX-LTN, as it has been outperforming the market over the past 6.5 months.
Looking 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.
For RACE, shares are up 0.54% over the past week while the Automotive – Original Equipment industry is down 0.51% over the same frame. Shares are very good from a longer view too, as the monthly price change of 3.31% also compares well with the industry’s 0.13% performance.
Considering longer term price metrics, like performance over the last 3,6 and 12 months.
Shares of Ferrari have increased 22.82% over the past Quarter, and have gained 16.83% in the last year. On the other hand, the S&P 500 has only moved 2.97% and 8.25%, respectively.
Investors should also pay attention to RACE’s average 20-Day trading volume.
Volume is useful in many ways, and the 20-Day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a Bullish sign, whereas a declining stock on above average volume is typically Bearish.
RACE is currently averaging 306,285 shares for the last 20 days.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the FY. These revisions helped boost RACE’s consensus estimate, increasing from $4.12 to 4.13 in the past 60 days.
Looking at the next FY, 2 estimates have moved up, while there have been no downward revisions in the same frame.
Given these factors, we rate RACE a Strong Buy stock. So, if your are looking for a fresh pick that is set to soar, put Ferrari on the short list. And remember it pays a dividend.
Enzo Ferrari’s 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 Very Bullish, overhead resistance is lite at 176.44, and very strong support at 166.10, all Key indicators are Very Bullish in here. Ferrari finished at 167.51, -0.51 Wednesday in NY.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.
Latest posts by Paul Ebeling (see all)
- US-China Trade Deal Hopes “whet risk appetite,” Gold Falls - November 15, 2019
- The Street’s Key Stock Analysts Research Reports - November 15, 2019
- F1: Ferrari (NYSE:RACE) Has the Strongest Engine this Year - November 15, 2019