Core Viewpoint - Ferrari has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3] Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation observed between earnings estimate revisions and near-term stock performance [4][6] - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price movements [4] Ferrari's Earnings Outlook - The recent upgrade for Ferrari indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [5] - Over the past three months, the Zacks Consensus Estimate for Ferrari has increased by 8.4%, with projected earnings of $10.41 per share for the fiscal year ending December 2025, showing no year-over-year change [8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7] - Ferrari's upgrade places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]

Core Viewpoint - Ferrari N.V. announces the continuation of its multi-year share buyback program, with an eighth tranche of up to Euro 360 million set to commence on August 22, 2025, and conclude by December 18, 2025 [1] Group 1: Share Buyback Program - The eighth tranche is part of a larger Euro 2 billion share buyback program initiated during the 2022 Capital Markets Day [1] - The Shareholders' Meeting held on April 16, 2025, authorized the purchase of up to 10% of the Company's common shares within an eighteen-month period [1] - The repurchase authority will expire on October 15, 2026, unless extended or renewed [1] Group 2: Execution Details - Ferrari has entered into a non-discretionary buyback agreement for up to Euro 280 million on the Euronext Milan market, with a primary financial institution making independent trading decisions [6] - An additional mandate for up to Euro 80 million will be executed on the New York Stock Exchange, where Ferrari will provide purchase instructions in compliance with applicable regulations [6]

Earnings Performance - Ferrari reported quarterly earnings of $2.7 per share, exceeding the Zacks Consensus Estimate of $2.57 per share, and up from $2.46 per share a year ago, representing an earnings surprise of +5.06% [1] - The company posted revenues of $2.03 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.45%, compared to $1.84 billion in the same quarter last year [2] Market Performance - Ferrari shares have increased approximately 17.4% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.30 on revenues of $1.95 billion, and for the current fiscal year, it is $10.27 on revenues of $8.2 billion [7] - The Zacks Rank for Ferrari is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Ferrari belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Core Viewpoint - The market anticipates Ferrari to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Ferrari is expected to post quarterly earnings of $2.57 per share, reflecting a year-over-year increase of +4.5% [3]. - Revenues are projected to reach $2.04 billion, which is a 10.5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Ferrari is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.53%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP reading is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 [10]. - Ferrari currently holds a Zacks Rank of 1, enhancing the likelihood of exceeding the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Ferrari exceeded the expected earnings of $2.36 per share by delivering $2.42, resulting in a surprise of +2.54% [13]. - Over the past four quarters, Ferrari has consistently beaten consensus EPS estimates [14]. Industry Comparison - Modine, another player in the automotive industry, is expected to report earnings of $0.95 per share, indicating a year-over-year decline of -8.7% [18]. - Modine's revenues are anticipated to be $651.12 million, down 1.6% from the previous year [18].

Core Insights - The Driehaus strategy, known as "buy high and sell higher," is highlighted as an effective method for selecting top momentum stocks, with Intuit Inc. (INTU) and Ferrari N.V. (RACE) identified as current picks using this strategy [1][8]. Driehaus Strategy Overview - Richard Driehaus emphasized a preference for investing in stocks that are increasing in price rather than those in decline, which aligns with the philosophy of the American Association of Individual Investors (AAII) that uses the percentage 50-day moving average as a key criterion [2][4]. - The strategy incorporates momentum indicators such as positive relative strength and the percentage change in the 50-day moving average, indicating an uptrend when the stock price is above its 50-day moving average [3][7]. Screening Parameters - Stocks selected for the Driehaus strategy must have a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, with research indicating that these criteria enhance upside potential [5][9]. - Key parameters include: - Last 5-year average EPS growth rates above 2% [7] - Trailing 12-month EPS growth greater than 0 and above industry median [7] - Last four-quarter average EPS surprise greater than 5% [7] - Positive percentage change in the 50-day moving average and relative strength over 4 weeks [7]. Selected Stocks - Intuit Inc. (INTU) has a Momentum Score of B and an average earnings surprise of 12.2% over the last four quarters [8][10]. - Ferrari N.V. (RACE) holds a Momentum Score of A with an average earnings surprise of 10.8% across the last four quarters [8][11].

Core Viewpoint - Ferrari (RACE) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Ferrari, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a rise in stock price as investors respond positively to this trend [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Ferrari is projected to earn $9.30 per share, reflecting a 1.5% increase from the previous year, with a 1.1% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10].