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 N.V.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

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.

Monday Sector Leaders: Advertising, Vehicle Manufacturers

Key Points
Thanks to its incredible brand power, Ferrari possesses what is arguably the widest moat in the auto sector.
Ford Motor Company's profit growth is significantly weaker than what the Italian carmaker has registered.
Ferrari is deserving of a much higher price-to-earnings ratio than Ford.
Since hitting a record high of $511.75 in July last year, Ferrari (NYSE: RACE) stock has backtracked. Shares currently trade 28% below their peak (as of July 20). Investors were concerned with management's lower-than-expected long-term forecast revealed last October. And the company's first fully electric vehicle wasn't well received.
Ford Motor Company (NYSE: F) is currently winning the race by a mile. The domestic automotive stock has climbed 26% in the past 12 months. Investors cheered management's latest move of launching a battery segment to meet robust demand amid the ongoing artificial intelligence boom.
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 »
But I'm less optimistic about Ford. My prediction is that the Italian luxury brand will deliver a better return than the Detroit carmaker over the coming decade.
Ferrari has a superior competitive position
Ford was founded in 1903. That long history doesn't diminish the fact that this business doesn't necessarily operate from the strongest competitive position. This is generally true for mass-market automakers.
Competition is incredibly fierce. This comes from domestic peers. However, international rivals have also given Ford a run for its money, particularly Asian manufacturers.
And demand is highly cyclical. Consumer behavior, which is dependent on macroeconomic forces, can dictate revenue trends.
Ferrari's competitive position is excellent. It possesses arguably the widest economic moat in the auto sector. Its brand is the star of the show. The Ferrari name is globally recognized for its rich heritage of racing performance and exceptional design. This is a luxury brand.
That standing is bolstered by management's focus on keeping a lid on supply, intended to support outsize demand. Consequently, Ferrari has pricing power. Some of its limited-run models, such as the F80 unveiled in 2024, are produced in extremely low quantities and carry starting price tags in the seven figures.
The same demand dynamics that apply to Ford are irrelevant to Ferrari. The latter's customers, who are the wealthiest people in the world, are resilient to economic headwinds.
Profitability is what drives stock performance
Ferrari's brand strength directly hits the income statement. During the first three months of this year, it registered an outstanding operating margin of 29.7%, with credit going to the aforementioned pricing power. This is light-years ahead of Ford's 5.4%.
Besides margins, profit growth should grab investors' attention. In the past decade, Ferrari's diluted earnings per share (EPS) rose at a compound annual rate of 18.7%. This is a robust pace that has contributed to its share price gaining 787% over the last 10 years.
Ford's trend is much more disappointing. It posted diluted EPS of $0.61 in Q1 2016. That figure barely increased, coming in at $0.63 in the most recent quarter, equating to a 10-year annualized rate of 0.3%. This explains why Ford shares have risen by less than 3% in the past decade.
The overall automotive industry is extremely mature, limiting Ford's potential. But Ferrari has a much better growth runway. It sold 13,640 cars in 2025, up 50% from 9,119 in 2020. The niche focus adds greater revenue upside as it sells more vehicles over time.
Pay the premium
Valuation is one area where Ford comes out on top, and it's not even close. Its cheap valuation is certainly due to its very capital-intensive business, characterized by low growth and earnings.
Its shares trade at a price-to-earnings (P/E) ratio of 11.3, representing a massive 69% discount to Ferrari's multiple, which currently sits at 35.9. Investors shouldn't take this as a reason to avoid the stock, though, since this is such a high-quality enterprise.
Ferrari's P/E ratio has fallen by 31% over the past 12 months. Compared to the rest of the market, this doesn't appear to be a bargain opportunity. However, not all companies should be viewed in a similar light. Ferrari might even be deserving of a valuation expansion if it continues to deliver strong financial results.
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 $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — 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 July 22, 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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

Key Points
Ferrari's strict exclusivity drives its pricing and brand power, as well as lofty margins.
BYD's vertical integration keeps costs impressively low, enabling its overseas sales to soar.
GM has spent tens of billions of dollars to buy back shares and drive shareholder returns.
The narrative surrounding the automotive industry hasn't always been a great one for investors. The industry is known for being brutally competitive, highly capital-intensive, unpredictable, and cyclical. And worse than anything, it's known for razor-thin margins.
That said, those narratives are changing as vehicles and the industry evolve toward more technologically advanced automobiles, including autonomous driving technology and other high-margin services. The following three stocks have all thrived in their own unique ways and are poised to beat the market going forward.
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Ferrari (NYSE: RACE) is a unicorn in the sense that it flips nearly all traditional automotive industry stereotypes on their head. Not only does Wall Street see the stock -- and value it -- more as a luxury brand than a traditional automaker, but Ferrari also earns its historically lofty valuation in multiple ways. First, as you can see in the graphic below, it boasts gross margins above 50%, like many luxury stocks, and dwarfs those of competitors.
Ferrari's EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating margins are also 2 to 3 times higher than most of its competitors and are consistently rising. This emphasizes the company's ability to hold durable competitive advantages in an industry not known for having economic moats.
Another aspect of the automotive industry that Ferrari flips on its head is its resistance to economic downturns and cyclicity. That's driven by two factors: Ferrari's strict exclusivity and hyper-wealthy consumer base.
Because Ferrari limits the volume of production well below demand, there are always consumers lining up to buy a vehicle when the opportunity presents itself, regardless of the economic situation. That factor is only amplified by the fact that the ultra-wealthy consumer base is far more insulated from traditional economic downturns, changes in interest rates, and other factors.
Currently, Ferrari isn't cheap by automotive industry standards, but its valuation is cheaper than its average over the past five years. That's in part because of internet backlash about the design of its first fully electric vehicle (EV), the Luce -- but it's going to sell out anyway, and over 40% of Ferrari's shipments in 2025 were hybrids. Ferrari is built more for the future than people give it credit for, and it's been winning for a long time.
BYD
BYD (OTC: BYDDY) (OTC: BYDDF) is another global automaker juggernaut, only in ways different from Ferrari. BYD switched to selling only EVs years ago and has watched its reach expand globally and sales volume soar, even passing Tesla in global EV sales last year. It wasn't even particularly close, with BYD selling 2.26 million full EVs to Tesla's 1.64 million. And when you include plug-in hybrids, that number from BYD jumps to 4.6 million vehicles.
One big reason for BYD's success is its ability to undercut the competition on price without sacrificing its vehicle quality or advanced EV technology. BYD is able to keep its costs impressively low through its unparalleled vertical integration and growing scale. It manufactures its own Blade batteries and semiconductors and generates large cost efficiencies that position it better than competitors amid price wars, which China's market is currently facing.
These are wildly affordable and well-designed vehicles, and BYD's sales are surging overseas in Latin America, Southeast Asia, and Europe. In fact, because of China's current price war and brutal competition, BYD's export business has turned from a nice surprise to a primary growth engine. As recently as June, the company's overseas sales jumped nearly 95% year over year to a record 175,349 vehicles in only one month. BYD's foreign markets now generate 43% of total sales, which helps offset a 22% domestic decline in China as subsidies and tax changes weigh on the market.
BYD is thriving globally, and when the Chinese market turns around, perhaps after some much-needed consolidation, it will be as well positioned as ever to profit for its investors.
General Motors
A big advantage for General Motors (NYSE: GM) is its co-dominance in full-size internal combustion engine trucks and SUVs -- a dominance it shares with crosstown rival Ford Motor Company. These full-size trucks and SUVs cost only marginally more to produce than sedans and carry far higher price tags and much fatter margins. That's why Ford went so far as to end production of all sedans in the U.S. market, other than its iconic Mustang. But keep in mind that the Mustang Mach-E even outsells the traditional internal combusion version.
While Ford is also well-known for its lucrative dividend that often yields between 4% and 5%, General Motors takes a different approach to its rival: share buybacks. For years, while GM's price-to-earnings ratio traded in the single digits, the company spent tens of billions of dollars to buy back an enormous number of shares. The market finally caught on toward the end of 2025, pushing its valuation roughly 3 times higher.
GM also has its eye on the future, expanding its high-margin -- think tech company margins -- OnStar and Super Cruise products and services. GM is playing the long game with this strategy and is giving every new GM vehicle eight years of basic OnStar and, in vehicles with the capability, three years of Super Cruise. GM is embedding these long-term subscription packages, hoping to drive renewal rates of these high-margin services higher. Early signs are positive, as the attach rate has consistently landed in the 30% to 40% range after the initial prepaid period ends.
Top global autos
These three automakers are all global juggernauts in their own way. Whether you prefer the pricing and brand power of Ferrari, BYD's intense vertical integration and low cost efficiencies, or GM returning massive value to shareholders through buybacks, they are all positioned to continue doing exactly what made them top, unique automotive stocks going forward.
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 $397,351!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,304,257!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — 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.
*Stock Advisor returns as of July 16, 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Investors Should Stop Overlooking the World's Top 3 Auto Stocks

Key Points
Tesla is quickly transitioning from automaker to a technology and AI business.
Ferrari has separated itself from mainstream auto companies through lucrative pricing power and lofty margins.
Many investors may not know that roughly half of Ferrari's sales volume is already electrified via hybrids -- and it's prepared for the future.
To say Tesla has been a solid investment might be the understatement of the century. A $10,000 purchase during Tesla's initial public offering would be worth roughly $2.57 million now.
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 »
It's also fair to say that some investors might not want to take on the added risk from Tesla as it drives toward a future that includes humanoid robots, driverless vehicles, and artificial intelligence (AI). It's not the same electric vehicle (EV) maker it once was, for better or worse.
If that business transition has you reconsidering your investment options, there's another automaker -- arguably the best auto stock out there -- named Ferrari (NYSE: RACE) that warrants your attention. Here are three reasons to consider it if Tesla is no longer an investment you're comfortable with.
1. Money, money, money!
Ferrari has long separated itself from the traditional automotive industry investment thesis. The industry is known for being capital intensive, cyclical, and for having thin margins. As you can see in the graphic below, Ferrari's margins for earnings before interest, taxes, depreciation, and amortization (EBITDA) dwarf the mainstream automotive industry.
Ferrari's gross profit margins routinely check in above 50%, and often Wall Street values and views the automaker as a luxury goods stock. That's more than fair considering that Ferrari's pricing power and brand image enable it to deliberately limit production to drive scarcity and exclusivity. The result is that Ferrari simply doesn't need discounts or incentives to sell vehicles, and that means more money flows to the bottom line.
That's an important topic for Tesla investors because the company still operates in the mainstream automotive business, where discounts, price wars, and other factors can easily hinder margins. Not only does Ferrari generate much higher margins at any level you choose to look, but those margins are much more stable than Tesla's and consistently rising.
This is a good segue into what drives Ferrari's margins.
2. "One fewer car ..."
Another way Tesla can't match Ferrari is in the latter's brand image and pricing power, which help drive the previously mentioned lofty margins. Enzo Ferrari's famous mantra was to build "one fewer car than the market demands."
It's a simple concept that few can pull off, but Ferrari does it famously. While Tesla hopes to produce millions of vehicles for a mass market, the Italian automaker produces under 15,000 units a year, creating exclusivity and an emotional draw. It's why Ferrari is a lifestyle luxury brand, not a traditional automaker.
Here's an example of how powerful the brand already is: The company spends nothing on advertising, essentially. Instead, the Scuderia Ferrari Formula 1 team is the engine that powers its marketing and reach. It's not all show and no-go, either, because racing technology filters down into its high-end models, helping support their sky-high price tags.
Another example of how different Tesla and Ferrari are is that the former still needs to fuel demand through price cuts at times, or with other incentives such as financing. Ferrari, on the other hand, won't even let you buy its limited-edition top-tier supercars unless you have already purchased its other vehicles in the past.
Buying a Ferrari takes a lot of money, but it's not all about that -- the company has to invite you into the club. These factors, among many more, make its brand and the pricing power nearly unmatched.
3. A different consumer base
Many investors throw around the phrase "Ferrari is recession-proof," but to be fair, it's closer to "recession-resilient." Its buyers have ultra-high net worths and are thus highly insulated from traditional economic downturns, inflation, or moves in interest rates. They can afford multimillion-dollar hypercars even amid a global recession, and they give the company a much more stable business that avoids the auto industry's historical cyclicity.
The loyalty that the brand generates is as intriguing as anything else the company does. It even ranks its customers based on how many cars they currently own, how long they've owned them, and their participation in official Ferrari brand events. In return, only the most loyal multicar owners are invited to purchase extremely exclusive models, which are highly priced and sell out even before being publicly announced.
What it all means
Ferrari is just a different animal, and while it shares the industry with mainstream automakers, they really operate in different worlds. It's evident in the company's lucrative margins that continue to rise, its powerful global brand and prestige that support extreme pricing without any discounts and incentives, and its supremely loyal consumer base.
Those are all things Tesla wants to generate one day, but right now, Ferrari is an excellent investment if you want to buy Tesla but are unsure about its future direction.
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 $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — 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.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

Want to Buy Tesla? 3 Reasons to Buy This Luxury Automaker's Stock Instead.

Key Points
After Ferrari's Luce unveiling, the stock promptly sold off 6%.
Unbeknownst to many, Ferrari derives roughly half of its annual sales from hybrids.
Despite the chatter online, actual Ferrari buyers aren't skipping a beat.
It was always going to be a groundbreaking moment when Ferrari (NYSE: RACE) unveiled the Luce, its first-ever full electric vehicle. Ferrari pushed the boundaries a bit too far for some people, and the internet was ablaze after the May launch with memes and backlash revolving around the Luce's minimalist and un-Ferrari-like design, designed by industry outsider and ex-Apple designer Jony Ive's firm. The backlash was intense, and then Ferrari's chief marketing and commercial officer, Enrico Galliera, left roughly a month after the Luce unveiling.
The Luce launch is an important one, and it sets the precedent for how Ferrari transitions into a new electrified era, despite its history and heritage of high-end racing and the roar of gasoline-powered engines. There's already evidence that the Luce will be successful, and history reminds us many times over that a dustup-to-success phenomenon isn't unusual.
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 »
Numbers don't lie
Let's cover some simple numbers and timelines. The first hint that the Luce would be fine, as would sales and demand, was from Ferrari's CEO himself, Benedetto Vigna, who, per Bloomberg, confirmed that the Luce was receiving orders from existing and new customers and that the order book already extended toward the end of 2027. An order book soaking up production toward the end of 2027, for a new EV that starts deliveries this October, suggests Ferrari customers aren't the ones driving backlash on the internet (who would have guessed?).
The Chinese market perhaps missed the kerfuffle, because, according to CarNewsChina, all of the country's allotment of Luce vehicles starting at roughly $586,000 were sold "immediately." To be fair, there have since been conflicting reports that Ferrari may still be accepting orders in China, though it's unclear if that's due to additional supply or false initial reports. To be fair a second time, Ferrari could slap a logo on a cardboard box with four wheels, maybe only three, and almost certainly sell out of the small allotment of units.
Finally, while Ferrari's stock quickly sold off 6% the day of Luce's unveiling, since the day after, the stock is up over 10% while the S&P 500 has remained slightly lower.
History tells us this
History tells us this has happened plenty of times before. Let's start with Detroit automaker Ford Motor Company (NYSE: F), when it ditched the iconic Mustang design and moved to the electric Mustang Mach-e version. Mustang purists and fans cried foul and similarly set the internet ablaze. It was doomed to be a flop, many said. But by 2024 the Mustang Mach-e had sold 51,745 units for a 27% increase over the prior year, while the traditional Mustang had sold 44,003 units for a 9.5% drop compared to the prior year. In 2025, that growth trend would have been similar if not for the ending of the $7,500 federal EV tax credit, but even so, the electric Mustang still won the head-to-head sales battle by roughly the same number of units.
Another example: Volkswagen-owned Lamborghini launched the Urus in 2018 and faced wild criticism for taking a sharp turn away from its low-slung, aggressive, sleek hypercars to more of a luxury SUV. Then, however, the Urus became an absolute status symbol among the ultra-wealthy and essentially doubled Lamborghini's global sales volume. That example held true for Porsche's Cayenne as well as Ferrari's own Purosangue. Change is rarely fun, but sometimes it's essential.
What it all means
This all goes to say that if you're an investor interested in owning shares of arguably the best automotive stock in the world, don't let the backlash against the Luce dissuade you. Early evidence shows that the Luce will be fine, history tells us that this has happened many times before, and Ferrari still has many high-quality attributes of a strong business that can fight off typical automotive industry narratives such as low margins and cyclicality.
As you can see in the graph above, Ferrari's margins dwarf those of its automotive competitors, and Wall Street gives it valuations closer to those of high-end luxury stocks -- and rightfully so. Ferrari's business is also far less susceptible to economic downturns and industry cyclicality because, simply put, ultra-wealthy Ferrari consumers aren't impacted as much financially. Ferrari is a fine-tuned business machine that races and wins on Sunday and sells on Monday, and the stock is still a smart buy for those willing to dig into the research.
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 $418,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — 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 July 4, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Apple and Ferrari. The Motley Fool recommends BYD Company and 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.

Numbers Don't Lie: Ferrari Is Still a Unicorn and Still a Big Buy Despite Luce Backlash

Key Points
Automakers have negative narratives for being cyclical, capital-intensive, and low-margin.
General Motors and Ferrari have both broken free of historically low P/E ratios.
Buybacks have been critical to GM's valuation rise, and that could slow as the stock becomes more expensive.
Detroit automakers such as General Motors (NYSE: GM), Ford Motor Company (NYSE: F), and Stellantis (NYSE: STLA) (if you still count the latter) have long been plagued by low valuations. While Wall Street is slowly changing its perception of these automakers as investments, thanks to a more intriguing and lucrative future centered on driverless vehicle technology and increasing software monetization, automakers' valuations seldom rise above a modest 10 times price-to-earnings ratio.
Let's cover what holds valuations down and, with one simple graph, show how GM has finally broken free of this confinement.
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Stereotypes are changing
In the past, investors shunned automakers as long-term investments due to many negative factors. Those include the view that automakers were highly cyclical, leaving them exposed to boom-and-bust economic volatility; ballooning legacy costs such as pension and healthcare obligations; capital-intensive operations that left them with thin margins; and the "dinosaur" narrative, in which management was slow to adapt and sometimes arrogant.
Those narratives are slowly changing, but for the most part, automakers' valuations have stayed stuck in neutral -- that is, except for General Motors. A rare longtime exception to these low valuations was Ferrari (NYSE: RACE), which has long recorded absurdly high margins and broke free of being viewed as a traditional automaker long ago, and is treated more as an ultra-luxury stock. That's why the following graph is so telling for long-term investors, because finally, another automaker has broken free of these chains and, impressively, matched Ferrari's lofty valuation.
As you can see, especially over the past year, GM's valuation has rapidly approached Ferrari's lofty position, while the remainder of the automotive industry struggled to break a 10x P/E ratio.
How did GM break free?
One of the primary driving forces behind GM's rapid valuation increase is how it chooses to return value to shareholders. While crosstown rival Ford is heavily lauded for its often lucrative dividend yield, which generally checks in between 4% to 5% and in recent years has been boosted with an annual special dividend due to better cash flow, General Motors has taken a different approach and essentially bet on itself and repurchased massive amounts of stock on the cheap.
In fact, GM has spent a staggering $30 billion on share buybacks over the past five years and retired about 500 million shares over that span. Going hand-in-hand with share buybacks is that Wall Street is rewarding GM's free cash flow, enabling it to make these massive purchases: GM has generated roughly $53 billion in free cash flow since 2021 despite the COVID-19 pandemic, inflating prices, tariffs, and trade policy changes. The next graph shows just how drastically GM has reduced its shares outstanding and the price increase it helped drive.
One major drawback right now is that, because share repurchases have been a big driver of GM's improving valuation, it's become more challenging as the shares aren't nearly as cheap as they once were. Don't expect GM to pull back on its strategy just yet, but it could change the benefits the strategy has driven recently.
What it all means
Investors could certainly argue that Ford deserves a better valuation than it's currently receiving, especially given that it returns significant value to shareholders through its dividend and has seen a large boost in market capitalization following the unveiling of Ford Energy, which seizes on the growth in AI infrastructure and energy demand. However, Ford also has much work to do on its vehicle quality and has led the U.S. industry in massive recalls, which have increased warranty costs that dinged its earnings on a couple of occasions.
However, Ford's crosstown rival, GM, is doing something that only Ferrari has achieved, driving its P/E multiple nearly three times that of many of its competitors. That's because Wall Street is recognizing not only GM's impressive cash flow, but its reduced share count thanks to buybacks, as well as growing high-margin business and recurring revenue from digital services such as OnStar and Super Cruise. One major reason for investors to buy into GM over its competitors is that it's finally broken free of historically low automaker P/E multiples. These graphs may be simple, but they speak volumes.
Should you buy stock in General Motors right now?
Before you buy stock in General Motors, 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 General Motors 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 $385,055!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,228,089!*
Now, it’s worth noting Stock Advisor’s total average return is 902% — 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 July 1, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Ferrari. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft, General Motors, and 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.

The Simplest Graph Shows Exactly Why GM Is a Big Buy -- but There's 1 Huge Drawback

Key Points
Ferrari is trading far lower than its average P/E ratio in recent years.
Stellantis recently unveiled a $70 billion, five-year plan to drive growth.
Both of these auto stocks merit more investor attention now.
Most investors love a bargain. Finding sound long-term stocks trading on the cheap can be a great way to juice your portfolio gains. But stocks typically trade cheaply for a reason, and we've all heard this warning: "Don't catch a falling knife."
However, Ferrari (NYSE: RACE) is trading far below its historical valuations in part due to uncertainty surrounding its first full-electric vehicle (EV). And Stellantis (NYSE: STLA) has plunged for the past three years amid waning market share and a lack of compelling products.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The good news is Ferrari still has plenty to offer investors, and Stellantis has a $70 billion turnaround plan. Let's take a closer look.
Ferrari is rarely "cheap"
Let's get one thing out of the way immediately: Ferrari is a unicorn of an automotive stock. There simply aren't many companies that can replicate the brand power or racing heritage -- or even the technology that drips from its racing team to its retail supercar business.
Ferrari is unique in far more ways than just its brand and heritage, including the fact that the company keeps a lid on the volume of sales to ensure exclusivity remains a cornerstone for the automaker. The strict exclusivity -- remember, it's a lengthy and complicated process to even purchase a Ferrari -- helps drive pricing power and ensures there's never a surplus of available Ferrari vehicles.
That exclusivity, pricing power, and control over sales volume all help the automaker drive margins sky-high compared to mainstream automakers. In an industry known for razor-thin margins and for being capital-intensive, Ferrari shatters the stereotype, as you can see below.
Another bonus with Ferrari is that its consumer base is simply in a different world than mainstream automakers' target market. As such, Ferrari's ultra-wealthy consumer base is largely immune to mainstream economic downturns, which makes the stock and business more resilient during recessions.
For these reasons, among many more, Ferrari rarely trades at a cheap valuation. But the stock is at an interesting point in time, when last year's guidance through 2030 disappointed analysts -- we should keep in mind Ferrari has previously low-balled guidance only to outshine it -- and the recently unveiled electric vehicle, named Luce, made investors anxious with its design departure from traditional Ferrari designs. For those reasons, Ferrari is trading far below its usual valuation levels, as you can see below, giving investors a rare opportunity to scoop up shares more cheaply.
A turnaround plan with teeth
Stellantis CEO, Antonio Filosa, hasn't taken long to make an impression on investors. On May 21, Stellantis launched a $70 billion five-year turnaround plan, with a new identity focusing 70% of that global investment on a handful of core brands: Jeep, Ram, Peugeot, Fiat, and Pro One (commercial business).
There are many components to the massive turnaround plan, but one of the simplest might be the most effective and noticeable. As many following the auto industry understand, there's an affordability crisis as the average price of a new vehicle hovers around $50,000. It's a part of the market you could certainly argue is vastly underserved at the moment, and Stellantis sees opportunity.
More specifically, Stellantis plans to launch nine vehicles priced less than $40,000 in North America by the end of this decade. Not only that, but two of those will check in under $30,000. While these lower average transaction prices (ATPs) likely come with slimmer margins, Stellantis also has a strong need to regain lost market share, improve sales volume, and increase its production capacity utilization.
On the back of these new launches, Stellantis is targeting adjusted operating income margins of 8% to 10% in North America by the end of 2030. It also targets growing sales volume in the region by 35%, and revenue by 25%, over the same time frame. Stellantis expects production capacity utilization to reach 80% by the end of the decade; focusing on affordability will be a huge boost to all those efforts.
Should investors buy now?
While Stellantis and Ferrari are both automakers, they're on very different ends of the spectrum -- or really, Ferrari is in a world of its own. As both stocks have declined recently, Stellantis more steeply than Ferrari, there's an opportunity to scoop up shares of perhaps one of the largest turnarounds in recent automotive history in Stellantis, and/or shares of Ferrari at a rare discount due to uncertainty around its first full-electric vehicle.
Both are compelling opportunities and warrant being on investors' watch list for further research.
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 $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% 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 June 9, 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 Cheap Stocks to Buy Now Before They Rocket Higher

Key Points
Investors should appreciate this company’s steady financial performance, supported by pricing power and strong demand.
Ferrari shares have taken a beating since last summer, driving the valuation to an attractive level.
Since the stock reached an all-time high last July, Ferrari (NYSE: RACE) investors have bid the shares down 33% (as of June 5). During a capital markets presentation in October, the business forecasted slower-than-expected growth through 2030. Furthermore, investors don't seem upbeat about Ferrari's recent introduction, its first fully electric vehicle called the Luce.
Here's why the market is wrong about this supercar manufacturer.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The market is being short-sighted here. This is an outstanding company, whose revenue and diluted earnings per share have risen 83% and 110%, respectively, between the first quarter of 2021 and Q1 2026. While the pace of growth might slow, this overarching trend should continue over the long term.
The growth isn't eye-popping. But it's the consistency and predictability that are notable.
Plus, the Ferrari brand, the single-most important asset that supports the company's wide economic moat, is still robust. The business possesses incredible pricing power, driven by low-volume runs driving strong demand, leading to a trailing-five-year average quarterly operating margin of 27.2%.
The luxury automotive stock trades at a price-to-earnings ratio of 33.4. This valuation is at an 18% discount to the stock's historical average. And the multiple has contracted 34% in the past 12 months.
For investors who have been waiting patiently on the sidelines, it's time to get in the driver's seat. Ferrari is a smart buy.
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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% 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 June 8, 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Stock Is Down 33% Since July 2025: 1 Reason the Market Is Wrong.

Key Points
Ferrari’s first electric vehicle, the Luce, sparked online criticism because of its distinctive design.
The company’s strategic pillars, which rest on low volumes and high prices, remain firmly intact and support the brand.
At the current price-to-earnings ratio of 33.1, near a five-year low, investors should be wondering why they don’t own this auto stock.
In October last year, Ferrari (NYSE: RACE) announced its financial outlook for the rest of the decade. The forecast implied 5% annualized revenue growth between 2025 and 2030. Investors weren't pleased, overreacting and immediately sending the stock down 21% in a matter of days.
This kind of price action is surprising to see from such a successful business. Shares saw choppy trading over the next several months.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
And then the market once again showed its displeasure when Ferrari revealed the Luce, its first fully electric vehicle (EV), on May 25. There was no shortage of criticism on the internet, with the unique design getting all the attention.
Ferrari shares have now been trading under $400 since November. Here's whether long-term investors should pounce at the opportunity to own the Italian luxury brand.
Let's hear it for the Luce
The Luce was designed by outside consultancy LoveFrom, co-founded by former Apple chief design officer Jony Ive, so it makes sense that the look is completely unfamiliar to Ferrari fans. The performance, at 1,035 horsepower and a 0-to-62 mph time of 2.5 seconds, should quiet the naysayers. Also, at a starting price tag of about $640,000, it doesn't deviate from the company's strategy of producing a low volume of expensive cars.
At the end of the day, this is uncharted territory for Ferrari, as it's new to the EV arena. But the Luce can expand the company's addressable market, as it has four doors, five seats, and a sizable trunk that might cater to a larger demographic than typical racing enthusiasts. Even if this car is a total flop, which I don't expect, it probably won't make a big dent in Ferrari's fundamentals.
Ferrari's brand still stands for exclusivity, luxury, and incredible performance. These key tenets haven't changed. Historically, they supported strong pricing power. There's no reason to believe this won't be the case in the years ahead.
The valuation has gotten attractive
This automotive stock, which is still up 691% in the past decade (as of June 3), currently trades 33% below its record from July last year. Market sentiment has shifted gears, with Ferrari shares driving in reverse.
This dip doesn't reflect the company's robust profitability. Ferrari reported an operating margin of 29.7% in the first quarter of 2026, a top-tier figure that is unheard of in the industry.
Unlike the vast majority of businesses, it can deliberately control supply so that customer demand is always insatiable, making its operations stable. Ferrari also serves the wealthiest clientele on the planet, supporting its resilience during recessions.
The current price-to-earnings ratio of 33.1 is close to a five-year low. It's time for long-term investors to pounce on the opportunity to buy Ferrari.
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 $439,847!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,342,065!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — 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.
*Stock Advisor returns as of June 6, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Ferrari. 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.

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