Ferrari’s (NYSE:RACE) Stock ‘Clean Air Ahead’

Ferrari’s (NYSE:RACE) Stock ‘Clean Air Ahead’

Ferrari’s (NYSE:RACE) Stock ‘Clean Air Ahead’


Shares of Ferrari (NYSE:RACE) are + 35% YTD, but they came off their highs to consolidate the last Bull leg that Topped at 149.85 a few weeks ago.

Ferrari finished Monday in NYC at 136.38, +1.02, or +0.75%, the market is closed.

And there looks to be more room for the company’s numbers to drive the the share price higher this year

Some analysts say that nearby risks are trade tensions and further out are changes like EVs and autonomous vehicles which could have some impact on the company. I do not see that for Ferrari.

Since the iconic Maranello Outfit’s IPO in October 2015 there has been a substantial multiple expansion as the share price increases have outpaced revenues and operational metric improvements.

Ferrari is an Aristocrat stock and commands a luxury PE ratio of about 40X.

That the company has done very well is no a surprise. A Ferrari is 1 of the ultimate luxury goods, and with the rise of the global elite there is a growing market for these Supercars, the supply cannot meet the demand.

In fact, 1 of the Key bits from the Q-1 Y 2018 results was that sales are growing at 2X digit (+16% Y-Y) pace in Italy where the stagnant economy is growing again. Less surprising is the 18% increase of sales in China.

I am Bullish Ferrari.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 135.67 9 July 2018 0.31 136.03 136.03 134.84 81,413
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (0.05) Neutral (-0.19) Neutral (0.14) Neutral (0.22)

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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