Ferrari’s (NYSE:RACE) Stock Dip a Buying Opportunity

Ferrari’s (NYSE:RACE) Stock Dip a Buying Opportunity

Ferrari’s (NYSE:RACE) Stock Dip a Buying Opportunity


Ferrari (NYSE:RACE) stock price has seen strong growth since July 2016. There are just a hand full of analysts covering the world’s #1 automotive brand stock, and it rightfully commands a luxury Price/Earings ratio in the 40’s plus pays a dividend conferring on the iconic Italian supercar maker Aristocrat status in the market.

On 5 June RACE gaped open at 135.84 and sped to an all time high on 15 June at 149.85, since then it has be consolidating that run and filling the gaps, this is positive action in the stock as it sets up for the next run into the end of this year.

I have been covering Ferrari since its planned IPO and throughout its phenomenal run against most analysts expectations, overall they feel it is over valued as a car company, they do not get Ferrari.

The Big Q: Is Ferrari stock a bargain?

The Big A: Looking at Ferrari’s outlook and value based its most recent financial data and expectations, my take is Yes.

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.

Although value investors would argue that it’s the intrinsic value (automotive analysis’ calculate the intrinsic value at 95.45/share) relative to the price that matter the most, the more compelling investment is high growth potential at a cheap price for Ferrari.

With profit expected to grow by 46.84% over the next couple of years, the future seems very bright for Ferrari. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

As close of the 5 June 2018 gap open at 132.87 to 135.39 looks like a good entry point for on the dip

I am still calling the stock a 200 long term.

There is only 1 # 1, and Ferrari is it. Not far behind is Fiat-Chrysler (NYSE:FCAU).

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 137.07 26 June 2018 0.17 136.87 137.4 136.22 254,741
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (0.22) Neutral (0.12) Neutral (0.11) Bullish (0.42)

Stay tuned…

The following two tabs change content below.

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.

You must be logged in to post comments :