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.

Ferrari remains a rare case where a premium valuation is backed by truly outstanding profitability and solid liquidity. Across all key multiples, the company trades significantly above the industry median: P/E, P/S, P/B, and P/FCF are notably elevated, which limits the potential for further valuation expansion. At the same time, the dynamics of these multiples overall are not deteriorating dramatically: P/S and P/B have recently declined from higher levels, while P/E and P/FCF have fluctuated within a narrow range, suggesting stabilization rather than a new re-rating impulse. Profitability looks very strong: ROE, ROA, ROI, operating margin, and net margin are all well above the industry, confirming the quality of the business and its ability to monetize a premium brand. It is especially important that margins and profitability are not just high, but have remained stable over the years, without any noticeable deterioration. Revenue, EBITDA, operating income, and net income are also growing, supporting the company’s intrinsic value. Liquidity is very comfortable: the current ratio and quick ratio are many times above industry benchmarks, and cash on hand remains high, reducing short-term financial risks. The debt burden looks moderate, but not ideal: debt/equity and long-term debt are higher than one would like for such a rich valuation, although the overall leverage trend does not appear concerning. Equity and assets are growing, confirming the expansion of the business base, but growth rates are no longer high enough to justify an aggressive increase in the target price. Dividend yield remains modest, but stable and slightly improving, so it supports the investment case rather than acting as a re-rating driver. Overall, Ferrari’s fundamentals are very strong, but the current market valuation already reflects a significant portion of these advantages. Therefore, the base forecast looks somewhat overstated and calls for a moderate conservative downward adjustment rather than a revision toward stronger growth.

Ferrari N.V.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно вырос. Рынок не поддерживает быков.

Medium index, significantly up. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Ferrari demonstrates exceptional profitability and liquidity, but it trades at a very high premium multiple, so the target forecast appears slightly overstated.

Key Points
Over the past decade, Ferrari stock’s 742% gain trounces Ford’s 84% total return (which includes dividends).
A well-funded and highly ambitious entrepreneur has a significantly better chance at copying Ford’s business model from scratch than replicating Ferrari.
Investors will notice that earnings growth is a major driver of stock performance over time.
In the world of brand status, Ferrari (NYSE: RACE) is in an elite category. This statement holds up regardless of industry. Consumers around the globe aspire to own its luxury vehicles.
Ford Motor Company (NYSE: F), on the other hand, caters to a mass market audience. The Detroit car manufacturer, founded in 1903, has been a leader in unit sales. It has a strong position in SUVs and pickup trucks.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Over the next 10 years (and beyond), though, I predict that Ferrari will be a much more promising investment candidate than Ford. Besides looking at their historical track records, investors should consider other critical factors such as moats and profit growth. The better automotive stock is apparent.
History doesn't lie
While past performance is no indication of what the future holds, the wisest investors don't ignore track records. History doesn't lie.
Ford has put up a disappointing performance. In the past decade, its share price has increased by only 8% (as of Sept. 22). However, including dividends, the total return over that period is 84%, which is much better.
But this doesn't hold a candle to Ferrari's impressive showing. The Italian company's shares have climbed 742% over the last 10 years. Had you invested $10,000 in the stock in late September 2016, you'd have more than $84,000 today. This gain not only outpaces Ford's, but it's also much better than the S&P 500 index's total return.
Differentiation creates lasting value
If some highly ambitious entrepreneur had access to unlimited capital, design and engineering talent, raw materials, and regulatory compliance, I'd argue that it would be much easier to replicate Ford's business model from a standing start. Money would pour into research and development efforts, expanding manufacturing, developing a smooth supply chain, and sales and marketing to get a brand-new car on the market.
This isn't to say success is certain. However, Ford's lack of durable competitive strengths exposes it to the constant threat from industry rivals and new market entrants introducing vehicles that capture demand.
It would be almost impossible for that same entrepreneur to copy what Ferrari does. A rich racing heritage and first-class design and technical capabilities support the company's success. Because of these variables, Ferrari is viewed by consumers as an aspirational good or a collector's item more than a tool to get from point A to point B.
Ferrari has pricing power, something Ford doesn't possess. This is an obvious sign that the former has developed an economic moat. Ferrari intentionally caps the supply of cars that it produces and ships. Management's priority is to maintain the strength of the brand.
This is evidenced by the company's first fully electric vehicle, called the Luce, revealed in May. Initial reactions were of disappointment, raising questions about whether Ferrari had lost its edge. At a charity auction in August, though, an exclusive model of the Luce sold for $40 million. Demand is robust for anything this business makes.
Earnings growth is the driver
If you buy Ford today over Ferrari with the plan to hold the stock for 10 years, then you're likely making a bet that the Detroit carmaker will register faster profit gains. Since fundamental performance drives the stock in the long run, this is the assumption you're making.
Again, we can turn to history for valuable context. From the second quarter of 2016 to the most recent quarter (Q2 2026 ended June 30), Ford's net income went from just under $2 billion to $1.3 billion. This translates to a cumulative loss of 33%. That's nothing to be pleased about.
During that same 10-year stretch, Ferrari's net income soared 377%, boosted by steadily rising sales figures and exceptional margins. And that's precisely why the stock has performed significantly better than Ford. I expect this trend to continue.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 26, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: Ferrari Is a Better Buy Than Ford for the Next Decade

Key Points
Ferrari boasts nearly unmatched pricing power and brand image in the global auto industry.
Its margins dwarf those of its competitors and are similar to those of luxury businesses.
BYD's vertical integration is impressive and gives the company many benefits amid the competition.
Investors might not be able to find two automakers more different than Ferrari (NYSE: RACE) and Chinese electric vehicle (EV) juggernaut BYD (OTC: BYDDY). The two contrast significantly: Ferrari focuses on ultra-luxury supercars in high-end niche markets, and BYD has made a name for itself by undercutting competitors globally through vertical integration.
Despite their strategic differences, both have compelling advantages that bode well for savvy investors and both are widely trailing the broader S&P 500 over the past year. Here's why some investors back these companies, and why potential investors should take a deeper look.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Win on Sunday, sell on Monday
The first thing savvy investors understand about Ferrari is how unique it is in the automotive industry, which is known for being low-margin, capital-intensive, and subject to economic downturns. Those narratives bounce off Ferrari just as ineffective bullets bounce off Superman. The first example of this can be found in Ferrari's margins compared to the broader industry; it's simply operating on an entirely different level.
Not only does Ferrari's operating margin dwarf the competition, but you'll notice in the graph that its margins have consistently improved over the past decade. This tells investors that Ferrari's economic moat and competitive advantages are strengthening. Ferrari has nearly unmatched pricing power and can even generate demand for vehicles priced into the millions of dollars for special variants such as the F80.
Further, the ultra-luxury vehicle maker boasts a high rate of repeat and loyal customers, often because to get in line to purchase more rare editions, you need a track record of prior purchases. It's not all that simple to just buy a Ferrari.
Ferrari also boasts high barriers to entry because the company's historic racing division consistently passes down racing technology to use in its street-legal vehicles, with a long list of patents and engine technology that few can replicate, or have the brand name to sell into retail markets.
One reason Ferrari's stock lost momentum was the unveiling of its first-ever full-electric vehicle, the Luce. The Luce design faced an onslaught of criticism and jokes, with even former Ferrari Chairman and President Luca di Montezemolo suggesting the company remove the prancing horse logo from the new supercar. Then Ferrari did what it essentially always does and sold out of its entire production target for 2026 within a couple of months, according to the Financial Times.
Many investors might skip over the automotive industry due to its low margins, but savvy investors know that Ferrari flips the negative automotive narratives on their head, continues to have impressive competitive advantages, and will have no issue amid the transition to EVs.
All about vertical integration
Another unique automotive stock that savvy investors are backing is the juggernaut EV and hybrid maker out of China: BYD. Already, the EV maker's growth has been explosive, surpassing Tesla last year in EV sales (not including BYD's hybrids), and when adding its hybrid sales, passing Detroit icons Ford Motor Company and General Motors to become the fifth-best-selling automaker by volume in the world.
BYD isn't resting on its achievements and, if anything, is making another aggressive push with the target of catching Toyota Motor's global sales volume of about 11.3 million vehicles, by 2031. Make no mistake, this will be a tall task, but BYD has posted strong growth globally despite a domestic Chinese market that is stuck in a brutal price war and decelerating. BYD has managed to ramp up its exports and get its foot in the door of key markets overseas, and expects its exports to nearly double in 2026 compared to the prior year.
Perhaps the most distinctive aspect of BYD for savvy investors is its extensive vertical integration. Legacy automakers have historically relied on large networks of third-party suppliers, but BYD took a different approach and produces almost all of its vehicle components in-house, giving it a cost advantage and ability to undercut the competition across the globe.
Further, manufacturing its own lithium iron phosphate (LFP) batteries as well as its own semiconductors, electric motors, drivetrains, and electronic control systems gives it protection from global supply chain disruptions, which the industry has seen recently in microchips and other speed bumps.
Both are long-term buys
While Ferrari and BYD operate at wildly different ends of the automotive spectrum, both have compelling advantages, whether it's pricing power and brand image or extensive vertical integration and mass-market volume growth potential. Due to Ferrari's Luce backlash and the ongoing price war in China hindering BYD's domestic sales, both are lagging the broader market gains over the past year. But that won't last forever, and savvy investors are taking notice.
Should you buy stock in BYD Company right now?
Before you buy stock in BYD Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BYD Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $389,154!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,303!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 23, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.

The Elite Portfolio: Why Savvy Investors Are Backing These Overlooked Stocks

Key Points
Changing macroeonomic variables have minimal impact on the success of a company like Ferrari.
Over the long term, steadily rising sales and profits have contributed to impressive shareholder returns.
As this auto stock trades 20% below its record high, opportunistic investors should consider adding it.
It's hard to believe that the Federal Reserve could be under a brighter spotlight. However, since Kevin Warsh became chair, it seems the central bank has been under more scrutiny from the investment community. Everyone wants to know which direction interest rates are heading.
Are you thinking about the impact the Federal Reserve's decisions will have on your portfolio in 2026 and beyond? This is a prominent topic on many investors' minds right now. You're not alone.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
There are certain businesses that are better positioned to keep thriving regardless of monetary policy. With this in mind, it may be time to consider buying this leading automotive stock, which has been a perennial winner historically. Shares have climbed 758% in the past decade (as of Sept. 16), turning $10,000 into $86,000 today.
Driving in the fast lane
Following its meeting on Sept. 16, the Federal Reserve announced it would increase the federal funds rate. It now sits within a range of 3.75% to 4%, up 25 basis points from the prior level. This was hardly a surprise to the market. The move was made to combat inflationary pressures.
The CME Group's FedWatch tool now puts the odds that the fed funds rate will stay put or be higher after the December meeting at 88%. Investors believe a tighter monetary policy is on the horizon.
In a higher-for-longer rate environment, or if rates rise over the rest of this year, investors should take a closer look at Ferrari (NYSE: RACE). This is a fantastic company with favorable traits. In fact, the business does well in most economic climates.
The brand is paramount to Ferrari's success. Its supercars are produced and sold in limited quantities, always leaving the market wanting more. In addition to the company's rich racing heritage, the status and exclusivity support pricing power. Businesses that can raise prices without impacting customer demand don't need to worry about interest rates.
Ferrari's profits are the envy of the automotive sector. Selling extremely expensive cars, with some fetching seven-figure price tags, coupled with greater buyer interest in personalizations, aids in bottom-line performance. In the past five years, the business has posted an average quarterly operating margin of 27.5%.
This company isn't registering rapid growth. However, its gains are healthy and durable. The consensus view among sell-side analysts is that revenue will grow at a compound annual rate of 7.3% between 2025 and 2028 as the business slowly boosts production volume.
Growth can come from all geographic segments. And there is a lot of wealth out there. There are several million people in the world with a net worth exceeding $5 million. This is Ferrari's target demographic.
Furthermore, consumers like this aren't concerned about what the Federal Reserve or Kevin Warsh are doing. This results in steady demand for Ferrari.
The opportunity is now
Ferrari shares hit their peak in July 2025. Since then, they have fallen 20%. This presents an attractive opportunity for investors. This is an elite company that, as mentioned, has a brand-driven moat, is extremely profitable, and has durable growth potential.
Investors might initially get hung up on the stock's valuation. It trades at a price-to-earnings (P/E) ratio of 38.3. For virtually every other business, this kind of multiple would be considered extremely expensive. After all, Ferrari shares are at a 65% premium to the S&P 500 index.
But this is a special company. And the stock deserves a higher valuation. Over the past five years, shares traded at an average P/E ratio of 44.9. So, today's setup is compelling. A valid argument can be made that Ferrari's P/E multiple could be higher in five years, which introduces added upside for investors.
Shareholders don't have to spend one second thinking about interest rates or any other macro-related topics. Ferrari will continue to operate from a position of strength no matter what the Federal Reserve decides to do.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CME Group and Ferrari. The Motley Fool has a disclosure policy.

Thinking of the Impact Fed Rate Hikes Will Have on Your Portfolio? It's Time to Consider Buying This Perennial Winner That Turned $10,000 Into $86,000 in 10 Years.

Key Points
Institutional buying (inflows) of Ford stock in the second quarter alone already tops 2025.
Ford has long had questions regarding its recalls, warranty expense, and quality, but now there is evidence of improvement.
Ford Energy has the capability of adding incremental profits to the bottom line.
When all is said and done, the global automotive industry might evolve and transform more over the next decade than it has in the past century. Electric vehicles (EVs) are rapidly advancing; vehicles are becoming more software defined, enabling developments like over-the-air updates; automakers are investing heavily in artificial intelligence (AI) and driverless cars, and more services. And of course, subscriptions are adding value to the daily commuter. It's an exciting time in the industry, and margins should rise on the road ahead.
When investing in the automotive industry, names such as Tesla (NASDAQ: TSLA), Rivian (NASDAQ: RIVN), BYD Co., or the Italian juggernaut Ferrari (NYSE: RACE) probably jump to mind, but institutional money is actually pouring into legacy auto Ford Motor Company (NYSE: F). There was nearly $7 billion of institutional buying of Ford stock during the second quarter of 2026 alone, more than during all of 2025. Here's a look at what's likely driving the move into Ford stock.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Reversing a huge problem
Of course, there are plenty of variables and reasons that could be driving the renewed interest in Ford, but here are two major developments that could be behind it. First, we have to consider that investors and analysts are finally getting raw data that Ford is fixing one of its biggest and most costly problems: vehicle quality. Ford ranked above all competitors in a category it didn't want to win in 2025: manufacturer with most recall campaigns. Ford topped the list with 153 recall campaigns last year, covering nearly 13 million vehicles. Ford had more recall campaigns in the U.S. than any competitor during each of the past five years except in 2024 when Stellantis took the crown briefly.
Not all recalls are created equal, and over-the-air updates can cheaply fix a long list of vehicle issues, but if the vehicle needs physical repairs, it can get costly. Investors will remember Q2 2024 when Ford's total warranty and recall costs surged to $2.3 billion, a $700 million increase over the prior year. It sent pretax profits plunging and crippled Ford's ability to meet Wall Street estimates; the stock initially plunged almost 18%.
Here's the good news! While Ford has for years preached that correcting vehicle quality was a top priority, investors had to rely on the company's word about its internal metrics pointing in a positive direction. That changed when JD Power released its 2026 U.S. Initial Quality Study, which grades brands on "problems per 100 vehicles (PP100)." The lower the score the better. Ford ranked third overall, behind only Porsche and Genesis, and was easily the highest-ranked mass-market brand. The study average reported PP175, while Ford checked in with far fewer problems and a score of PP152. Only three years ago, Ford ranked 23rd in the same study, lending credibility to the idea that Ford is fixing one of its biggest long-term problems.
But wait, there's more
In addition to fixing its vehicle quality woes -- which will take time to filter into the massive number of older Ford vehicles on the road right now -- Wall Street also noticed Ford's newest ambition: Ford Energy. Ford stock soared nearly 50% in May alone before giving back roughly half of those gains since, following the announcement of Ford Energy, which would deliver battery energy storage systems (BESS) to large industrial customers and artificial intelligence (AI) data centers. The latter needs uninterrupted power and a system that helps cut costs by charging when electricity is cheaper and discharging when prices are peaking.
Ford is investing roughly $2 billion to repurpose its Glendale, Kentucky manufacturing plant to produce stationary storage systems capable of delivering 20 GWh of battery storage annually. The first deliveries to customers are scheduled for late next year, and Morgan Stanley analysts estimate that at full annual capacity, Ford Energy could generate between $500 million and $600 million in annual operating profits, or earnings before interest and taxes (EBIT).
What it all means
There could be many reasons why Wall Street's interest in Ford has surged, including the company's lucrative 4.1% dividend yield even after its share price rise. Or Wall Street could be optimistic about Ford's plan to refresh roughly 80% of its North America vehicle portfolio by volume by the end of the decade. However, two big reasons likely influencing Wall Street are that Ford is gaining traction by improving vehicle quality and that it is seeking new revenue streams from its EV and battery technology, which could boost margins above the notoriously low-margin narrative that haunts the automotive industry. Whatever it is, Ford is moving in a positive direction, and Wall Street has certainly noticed.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $412,074!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,314,319!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 17, 2026.
Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool recommends BYD Company and Stellantis. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

The Under-the-Radar Stock Big Money Is Quietly Buying Up

Key Points
The U.S. federal debt currently represents 123% of the country’s GDP, close to the highest level ever.
This precarious financial position supports persistent inflationary pressure and elevated interest rates.
Companies with pricing power that operate from a position of financial strength are in good shape.
Besides the artificial intelligence trade, investors have been obsessed with any macroeconomic news that hits headlines. And it's hard to find a story in recent weeks that captured the market's attention like the U.S surpassing $40 trillion in gross federal debt. By any measure, this is an absolutely mind-boggling number.
The debt balance has expanded by 377% in the past two decades. And it currently represents 123% of the country's total GDP figure. The Congressional Budget Office estimates that it will continue climbing, reaching $64 trillion by 2036.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors had better get used to hearing more about the U.S. national debt problem. Here's what this macro trend means for your portfolio in 2026 and beyond.
Nothing will change
The U.S. has the world's largest and most advanced economy, driven by dominance in the technology sector. It controls the global reserve currency in the dollar. And it has the most robust and liquid capital markets. These advantageous traits support the argument that the nation can keep borrowing indefinitely.
Of course, this can continue only as long as buyers of Treasuries trust that they will get paid back. So far, this hasn't been an issue. And things that appear unsustainable can go on a lot longer than people anticipate.
It makes sense for the government to embark on stimulative measures during recessions or other adverse shocks. This was precisely what happened during the global financial crisis toward the end of the 2000s, and to help boost the economy when the COVID-19 pandemic hit. The government steps in to keep things running.
What's interesting to see, though, is that the debt burden has kept rising even though the economy is on solid footing. Through the first 10 months of fiscal 2026, the Treasury Department ran a deficit of $1.8 trillion, 10% higher than in the same period last fiscal year. The U.S. spends more on interest payments than it does on national defense.
No matter what politicians say, the government isn't able and willing to cut spending. Just look at the DOGE (Department of Government Efficiency) initiative, which was by any account a failure.
And raising taxes isn't a popular campaign platform, unless politicians want to increase their chances of losing. This means that the debt will keep rising. Furthermore, this supports elevated inflation and interest rates. This will certainly be true relative to the environment we witnessed during much of the 2010s.
Own inflation beneficiaries
The investment implications are clear. In this kind of macro backdrop, investors should favor high-quality businesses, particularly those that have pricing power and impressive financials. This isn't necessarily a buy recommendation. But these are companies to dig further into here.
Apple (NASDAQ: AAPL) comes to mind. Its brand resonates strongly with consumers around the globe. Its hardware devices are always in demand, commanding premium prices. And the business is one of the most profitable in the world. On $364 billion in revenue through the first nine months of fiscal 2026, Apple raked in $110 billion in free cash flow.
Another great example is Ferrari (NYSE: RACE). This company doesn't behave like a typical mass-market car manufacturer. Ferrari intentionally caps supply, supporting robust demand and pricing power for its luxury vehicles. And its operating margin was a stellar 31% last quarter.
Investors might not view Visa (NYSE: V) and Mastercard (NYSE: MA) as having pricing power. However, they are certainly beneficiaries of inflation. As consumers are forced to spend more on goods and services, these payment networks are able to process higher volumes, which translates to revenue growth. It also helps that they are incredibly profitable, with net income margins that have averaged more than 45% in the past five years.
These four businesses are set up to continue thriving in the face of mounting U.S. national debt.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Ferrari, Mastercard, and Visa. The Motley Fool has a disclosure policy.

The U.S. National Debt Just Surpassed $40 Trillion. Here's What This Means for Your Portfolio in 2026 and Beyond.

Key Points
Despite strong Q2 results, Tesla's automotive segment has been hurt by macro and industry headwinds in recent years.
Ferrari's revenue and earnings beat analyst estimates in the second quarter.
A wide moat, proven pricing power, and durable financial performance are why the Buffett would appreciate Ferrari’s business.
Warren Buffett made his career as head of Berkshire Hathaway largely by finding businesses that he could own forever. Holding shares of companies that can increase revenue and profits in a steady fashion, known as compounders, can lead to tremendous long-term results. Individual investors should try to incorporate this philosophy into their portfolio strategies.
Buffett was never very fond of automotive stocks. But there's one carmaker whose shares have risen 746% during the past decade (as of Aug. 12) that might convince him that an attractive investment candidate can be found even in a difficult industry.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What market-beating stock am I referring to? To be clear, it's not Tesla (NASDAQ: TSLA), though you surely know its name.
Tesla's auto segment is unpredictable
During the 2026 second quarter, Tesla reported a 23% year-over-year jump in automotive revenue. Its electric vehicle (EV) deliveries rose 25%.
On the surface, these are great numbers. However, higher gas prices probably helped to boost the results, and that may not last.
And since hitting a peak in 2023, Tesla's auto revenue has failed to report consistent growth. Its gross margin has also been hurt by lower average selling prices.
The business is heavily exposed to macroeconomic conditions, primarily elevated interest rates. This can make buying cars more expensive for consumers.
Competition is also fierce in the EV market. Tesla is no longer the only manufacturer of these plug-in battery-powered cars. Legacy automakers have their own offerings. And foreign companies, especially those in China, also sell compelling EV models.
Ferrari's latest financial results beat estimates
Ferrari (NYSE: RACE) is immune to many of those same variables, macro pressures, and competitive forces that hurt Tesla and other mass-market auto businesses. Its operations are unique, as it behaves more like a luxury goods purveyor than a car manufacturer. Buffett would appreciate this setup, which runs counter to the natural cyclicality of the auto industry.
In Q2, Ferrari reported revenue of 1.9 billion euros ($2.2 billion), up 8.4% year over year. It also posted 2.62 euros in diluted earnings per share, 10% higher than the second quarter of 2025. These headline figures beat Wall Street expectations.
The company shipped 3.7% fewer cars in Q2 than it did in the year-ago period. But this didn't prevent operating income from rising 9.5%.
Ferrari's latest results were driven by higher-than-anticipated personalizations, as customers spend more money to tailor every detail of their cars. For the business, this trend can bolster incremental high-margin revenue. And it further differentiates Ferrari from the rest of the industry.
Meeting Buffett's requirements
There are three obvious reasons Ferrari would pass Warren Buffett's quality screen.
The presence of a wide economic moat is the first factor. Ferrari has arguably the strongest brand in the auto industry and one of the most recognizable names in any sector. This intangible asset is supported by management's relentless focus on keeping supply tight, which aids the exclusivity, prestige, and status that come with owning one of these supercars.
There is proven pricing power. These expensive vehicles are Veblen goods, meaning that demand for them could actually increase if the price tag goes up. The target demographic, customers who probably have at least a seven-figure net worth, view these cars not as utility products but mostly as collector's items.
Ferrari vehicles can cost hundreds of thousands of dollars at the low end. There are special editions, like the F80 released in 2024, that carried a sticker price of $3.7 million.
And lastly, as alluded to already, Ferrari's financial performance has been impressive throughout its history. Its operating margin during the past decade averaged a phenomenal 25.2%, a level that's surely the envy of the rest of the industry. And the financial gains are steady and predictable, as this is a recession-resilient business.
Individual investors should consider buying shares of Ferrari today.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Ferrari, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Market-Beating Auto Stock Up 746% in the Past 10 Years That Warren Buffett Would Agree Is a Compounder (Hint: It's Not Tesla)

Key Points
The automotive industry is evolving into a higher-margin business as software becomes a bigger part of the vehicle.
Ferrari has a long list of competitive advantages, and it's a buying opportunity after the Luce failed to impress with its design.
Stellantis has a big turnaround plan, and after shedding 70% of its value over the past three years, it offers significant upside.
The automotive industry is poised to potentially evolve more over the next decade than it has in the past 50 years -- arguably even longer.
A massive shift from internal combustion engine powertrains to electric vehicles (EVs) has also spurred the development of software-defined vehicles and driverless vehicles, and driven a rise in services and subscription offerings, which are rapidly changing how savvy investors view auto stocks as new high-margin businesses.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors looking to get in early on the evolving auto industry should start by considering these two stocks with massive upside potential.
No love? No problem.
Ferrari (NYSE: RACE) is a unicorn in the automotive industry with a long list of competitive advantages, lucrative margins that dwarf the industry, a powerful brand and racing heritage, and a loyal, ultra-wealthy consumer base that is less impacted by typical economic downturns, making the stock more recession-resilient. But over the past year, it has traded well below its average price-to-earnings ratio, allowing investors to buy an excellent business at a discount.
One reason for the recent pessimism surrounding Ferrari was the launch of its first full electric vehicle, the Luce, and the initial reaction to the unusual design, which was not at all flattering. Making investors more anxious was the fact that rival Lamborghini officially canceled plans for its first full-electric vehicle, the Lanzador, citing customer demand for a full-electric Lamborghini as "close to zero."
But Lamborghini's hesitation and internet backlash -- from people highly unlikely to be Ferrari customers anyway -- didn't slow Ferrari down. The company announced it has already sold every Luce it plans to build this year -- about 500 vehicles -- and it did so in less than two months, per the Financial Times. It sold out of the Luce allotment before a single one was even delivered; deliveries don't begin until October.
The Luce selling out isn't about the sales volume, but it does emphasize numerous competitive advantages that make it one of the top, if not the top, automotive stocks in the market. The Luce, with a base price of roughly $640,000, already sits near the top of Ferrari's price ladder and demonstrates the company's incredible pricing power, not to mention loyal consumers willing to buy nearly anything it produces. Branching into full EVs represents incremental volume and a bigger total addressable market, and Ferrari noted that many Luce buyers have never owned a Ferrari before.
At a time when most automakers are losing money on their EVs, Ferrari proves once again that it operates in a whole different world than traditional automakers. At its current valuation, it has plenty of upside for investors and far less risk than most auto stocks.
Big-time turnaround
Stellantis (NYSE: STLA), on one hand, appears to be an automaker nobody wants to invest in. It took massive charges on an EV strategy it pulled back on, has shed 70% of its value over the past three years, has posted seven consecutive years of annual sales volume declines through 2025, and has other issues. On the other hand, Stellantis has an excellent turnaround plan and is investing $70 billion to implement it over the next five years.
Stellantis' five-year strategic plan will have many moving parts globally. Two of the most important strategic initiatives are affordability and investing in North America, which remains its profit engine. The push for affordability comes with significant unmet demand for vehicles priced under $40,000, especially as the price of new vehicles continues to hit new record highs.
In a move that could quickly reverse its market share losses, Stellantis promised nine new North America vehicles priced under $40,000, and at least two priced under $30,000. Not only will these high-demand, more affordable vehicles help reverse market share losses, but they will also improve the automaker's poor factory utilization, which will support margin growth.
North America will be crucial to Stellantis' overall turnaround, and about 60% of the strategy's product and brand investments will be directed there to boost offerings and launch more lucrative vehicles from its Jeep and Ram brands. Stellantis is already gaining traction, with its recent launches returning the automaker's North American sales volume to year-over-year growth for the past four quarters.
Stellantis is focused on rebuilding profitability, reversing declining sales, and improving factory utilization to support margins. Because investors have drastically sold it off over the past three years, it might have the most upside amid its potential turnaround of any auto stock in the market.
Time to buy?
This is an interesting time for the automotive industry, with multiple shifts and evolving technology that is increasingly intertwined with lucrative software and even artificial intelligence (AI). Both Ferrari and Stellantis offer immense upside over the next five years, partly due to their recent sell-offs, and savvy investors looking to get into the evolution of the auto industry toward a higher-margin business would be wise to look more closely at those two overlooked stocks.
Should you buy stock in Stellantis right now?
Before you buy stock in Stellantis, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stellantis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
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*Stock Advisor returns as of August 11, 2026.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Hugely Overlooked Auto Stocks With Massive Upside

Key Points
This, despite revenue and profitability growth that was lofty for the auto industry.
The high-end auto maker also raised its annual guidance.
Expectations were high for the exceptional auto company Ferrari (NYSE:RACE) ahead of its second-quarter results, which were published Thursday morning. It didn’t quite meet those hopes, and the stock was down in price heading into the weekend.
It wasn’t down by much, however, which to me shows that investors still think well of it despite the quarterly misses. Let’s pop the hood to see what drove Ferrari during the period, and determine whether its shares are a buy.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: The Motley Fool.
Racing ahead
Ferrari booked nearly 1.94 billion euros ($2.23 billion) in the period, which bettered the year-ago quarter by 8%. That, despite a slight (4%) decline in total shipments, to 3,366 vehicles. Net income, both headline and adjusted for special and one-off items, rose by a slightly higher 9% to 463 million euros ($533 million), or 2.62 euros ($3.02) per share.
Analysts tracking the automotive company’s stock were expecting a more revved-up quarter, however. Their consensus estimates were 2.15 billion euros ($2.48 billion) for revenue and 2.85 euros ($3.28) per share for net income.
The quarter was marked by the introduction of a new vehicle from the storied Italian manufacturer, the all-new Luce electric vehicle (EV), which was unveiled in May. Ferrari had held off on entering the EV market for years, but even as EV sales have been shrinking lately, many consumers still prefer more environmentally friendly technology.
The Luce announcement wasn’t greeted warmly by many Ferrari-watchers and aficionados. That’s not particularly surprising, as fanbases can be very protective of what they consider to be a company or brand’s legacy. The classic image of Ferrari as a carmaker is a speedy vehicle powered by an engine furiously burning gasoline. It’s not a vehicle plugged into a charger. To a degree, lingering negative sentiment on the Luce’s introduction might have contributed to the post-earnings sell-off. Some folks are surely resistant to the company’s belated embrace of EV technology.
They might also have been dismayed by the shipment dynamics in the quarter. Not only did this metric decline overall, but it also fell in three of the company’s four tracked regions — Americas, mainland China, Hong Kong and Taiwan, and the rest of Asia-Pacific (APAC). The one gainer for the European company was Europe, the Middle East, and Africa (EMEA), which saw a 13% increase to 1,856 (comprising 55% of the total, incidentally).
Yet there were other elements about the quarter to like besides those increases in fundamentals. One was the composition of its foundational auto revenue (responsible for 84% of the total, with smaller contributions from sources such as sponsorships and the company’s share of Formula 1 World Championship commercial revenue). Ferrari said the double-digit increase was due to a “positive product mix” and an increase in auto personalizations. Lower depreciation, on the back of model change-overs, was a factor in the bottom-line boost.
Accelerated guidance
Those factors convinced Ferrari management that the coming quarters will be better than expected. The company raised its guidance for full-year 2026, lifting its revenue projection to around 7.6 billion euros ($8.7 billion) from 7.5 billion euros ($8.6 billion) previously. The company’s 2025 top line was 7.15 billion euros ($8.2 billion).
It also added a few euro cents to its adjusted net income per share forecast; this is now 9.68 euros ($11.14), up from at least 9.45 euros ($10.88). The new guidance is even more comfortably above Ferrari’s 2025 adjusted net income of 8.96 euros ($10.32) per share.
For an automotive company, Ferrari looks expensive at first on its valuations (like a forward P/E of almost 35). But we have to bear in mind two factors that help command that premium.
Firstly, as a maker of limited-run, very high-end specialty vehicles, the company stands out from mass-market peers like General Motors (NYSE:GM), Toyota (NYSE:TM), or even EV king Tesla (NASDAQ:TSLA). In fact, it’s priced more as a maker of luxury goods than a car company.
Second, in a business that often runs in tandem with economic cycles, Ferrari is quite recession-proof. Because it targets the very top of the car-buying market, its customers tend to set aside money for high-end autos no matter how the economy might be sputtering. The strong demand for Ferraris has never flagged significantly, as is apparent throughout the company’s history.
Given its uniqueness, the admirable strength and longevity of its brand, and its ability to post meaningful growth while being bold enough to advance its business (with the Luce, for example), Ferrari is a very attractive company. And even though that stock isn’t cheap, it’s a buy to me.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 2, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Ferrari a Buy After Its Latest Earnings Report?

(RTTNews) - Italian luxury sports carmaker Ferrari N.V. (RACE) reported Thursday that its net profit for the second quarter increased to 463 million euros or 2.62 euros per share from 425 million euros or 2.38 euros per share in the prior-year quarter.
Net revenues for the quarter increased 8 percent to 1.94 billion euros from 1.79 billion euros in the same quarter last year. It was up 11 percent at constant currency.
Shipments for the quarter totaled 3,366 units, down 128 units from last year.
Looking ahead for fiscal 2026, Ferrari now projects adjusted earnings of higher than 9.68 euros per share on net revenues of around 7.6 billion euros.
Previously, the company expected adjusted earnings of higher than 9.45 euros per share on net revenues of around 7.50 billion euros.
In Thursday's pre-market trading, RACE is trading on the NYSE at $395.12, up $9.70 or 2.52 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Q2 Net Profit Up 9%; Boosts FY26 Outlook

In trading on Monday, advertising shares were relative leaders, up on the day by about 3.9%. Leading the group were shares of Grandstand, up about 8.7% and shares of Groupon up about 6.8% on the day.
Also showing relative strength are vehicle manufacturers shares, up on the day by about 3.9% as a group, led by LiveWire Group, trading higher by about 68.5% and Ferrari, trading higher by about 4.7% on Monday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.