The Chart of the Day belongs to the sports car manufacturer Ferrari (RACE) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 3/21 the stock gained 2.07%.
Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers range, special series, Icona, and supercars; limited edition supercars and one-off cars; and track cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks; develops and sells a range of apparel and accessories; and operates franchised and owned Ferrari stores. The company also sells its products through a network of authorized dealers operating points of sale, as well as through its website. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 38.08+Weighted Alpha
- 24.84% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 10 new highs and up 5.75% in the last month
- Relative Strength Index 68.86%
- Recently traded at $276.71 with 50 day moving average of $265.15
Fundamental Factors:
- Market Cap $50.66 billion
- Revenue expected to grow 13.80% this year and another 8.00% next year
- Earnings are estimated to increase 20.70% this year, an additional 16.00% next year and continue to compound at an annual rate of 12.77% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 3 strong buy, 2 buy, 4 hold and 1 sell opinions on the stock
- The individual investors following the stock on Motley Fool voted 66 to 12 for the stock to beat the market with the more experienced investors voting 14 to 4 for the same result
- Value Line gives it their above average rating of 2 with price targets from $215 to $440 with a consensus of $328 for a 20% gain
- CFRAs MarketScope has a 4 star buy rating with a price target of $314 for a 15%+ gain
- Zack comments: A top-ranked player in the auto space Ferrari N.V. RACE, sports a Zacks Rank #1. Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimates for RACE’s 2023 sales and earnings imply year-over-year growth of around 14% and 19.8%, respectively.
- 21,510 investors monitor the stock on Seeking Alpha
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
