🏎️ Ferrari Gets Back in the Race

Happy Sunday to everyone on The Street. 

Hope you all had an amazing holiday week. (And final full week of the year!)

I don’t know about you, but I won my Holiday Bingo Card handily.

Here were the winning squares:

• Snowed on Christmas

• Opened Gifts Well Into the Afternoon

• Solicited for Meme Coin Investing Advice

• Family Member Had a Breakdown (I crossed that one out twice!)

• One Too Many Magic Cookie Bars

How many did you get? 😂

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Ferrari Is Getting Back in the Race

Good Start, Slow Finish

Ferrari (RACE) has hit some speed bumps lately. But, according to Barron’s, its stock may be off to the races yet again very soon.

The stock is up nearly 28% YTD, but it has lost more than 13% since peaking in late August, as luxury consumer spending has slowed. 

The firm argues that its newest car — which comes in at a cool $3.8 million — could bring with it a significant earnings boost, too, to the tune of a 30% rally. Evercore ISI’s Michael Binetti believes the stock could rise to $565.

Time to Buy?

The stock is currently trading at a very high 48x future earnings. But that is actually down from its high of 51.5x in October.

The company beat earnings in November, but the stock continued to drop nonetheless. Investors, accustomed to the company’s outperformance, were disappointed when the company didn’t improve its guidance following its earnings beat.

As a result, the stock is now trading at levels last seen in February. However, analysts believe Ferrari’s new F80, combined with its recent price trend, may present a potential buying opportunity.

Wall Street is Bullish

Ferrari’s new supercar has excited both car enthusiasts and investors alike. All 799 units were pre-sold, and the company aims to start shipping them at the tail end of 2025.

That is when the sales will appear in earnings reports — at which point, Barron’s suggests, it may be too late for investors to reap the rewards.

Analysts expect Ferrari’s EPS to grow 10% to $9.34 in 2025. Half of the analysts covering the stock have given it a Buy rating, while only 8% have marked it as a Sell.

In other words, it may be time to get back in the race, for Ferrari and its investors alike.

Sponsored By ProsperityPub

The Secret Dates Top Traders Love

Apple has shown consistent movement on certain dates over the years—do you know when? Stock Hotsheets reveal historically significant patterns for top stocks like Walmart and LULU. Find out more today.