Ferrari N.V. (RACE) Hits Fresh High: Is There Still Room to Run?

Company Performance - Ferrari shares have increased by 8.9% over the past month and reached a new 52-week high of $517.57, with a year-to-date gain of 21.8% compared to the Zacks Auto-Tires-Trucks sector's -8.4% and the Zacks Automotive - Original Equipment industry's 11.8% [1] - The company has consistently beaten earnings estimates, reporting EPS of $2.42 against a consensus estimate of $2.36 in its last earnings report [2] - For the current fiscal year, Ferrari is projected to achieve earnings of $10.27 per share on revenues of $8.2 billion, reflecting a 12.12% increase in EPS and a 13.56% increase in revenues [3] Valuation Metrics - Ferrari's stock trades at a high valuation, with a current fiscal year EPS estimate of 50.4X, significantly above the peer industry average of 13.3X [7] - The stock's trailing cash flow basis is at 53X compared to the peer group's average of 7.4X, and it has a PEG ratio of 5.67, indicating it is not in the top tier from a value perspective [7] Zacks Rank and Style Scores - Ferrari holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions, making it a strong candidate for investment [8] - The company has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] Industry Comparison - Visteon Corporation, a peer in the industry, has a Zacks Rank of 2 (Buy) and strong scores across Value, Growth, and Momentum categories [9] - Visteon is expected to post earnings of $7.78 per share on revenues of $3.67 billion for the current fiscal year, having beaten consensus estimates by 41.18% last quarter [10]