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. демонстрирует впечатляющие финансовые показатели, однако высокие мультипликаторы указывают на потенциальную переоцененность акций. P/E, P/S и P/FCF значительно превышают медианные значения по отрасли, что может вызывать опасения у инвесторов в отношении дальнейшего роста цен. С другой стороны, такие метрики, как ROE и ROA, остаются на высоком уровне и показывают положительную динамику, что говорит о высокой эффективности компании. Низкий уровень долговой нагрузки, высокие коэффициенты текущей ликвидности и быстрая ликвидность также положительно сказываются на финансовом здоровье. Однако рост доли долгов в структуре капитала может быть признаком повышенных рисков. Дивидендная доходность отсутствует, что также следует учитывать при оценке привлекательности акций для инвесторов, ориентированных на доходность. В целом, несмотря на сильные операционные результаты, высокая оценка акций может ограничивать дальнейший рост цен на фондовом рынке.

Ferrari N.V.

Key Points
Typical mass market car companies are defined by low profit margins and cyclical demand trends.
Ferrari's brand, supported by a rich racing heritage and intentionally scarce volumes, drives incredible financial performance.
Investors should consider taking advantage of a historically cheap valuation.
Ferrari (NYSE: RACE) has put together a winning return, with shares soaring 719% in the past decade (as of April 24).
However, investors might be discouraged by the company's share price slipping in the past nine months. They trade 32% off their record, which might force you to call the durability of Ferrari's success into question.
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Does this luxury stock still possess the widest economic moat in the entire automotive sector?
Mass market car makers aren't good businesses
When investors think of car companies, domestic names like Ford and General Motors probably come to mind first. Foreign manufacturers, like Toyota and Volkswagen, also deserve attention.
Due to these automakers having low growth, weak profits, high costs, capital-intensive operations, and cyclical demand, a valid argument can be made that these companies don't have moats.
But what about an electric vehicle (EV) stock like Tesla?
The Elon Musk-led company has developed significant manufacturing capabilities that should bring its costs down. And even though the company's main focus has now shifted to robotics, investors might believe that Tesla has built a highly regarded brand in the EV market.
But its pricing power has been undermined in recent years. This shows up in its declining margin profile.
Ferrari's success is dependent on the brand's strength
It's safe to say that Ferrari still has the widest economic moat in the worldwide automotive sector. And all the credit goes to its incredible brand. The Ferrari name and logo, which express exclusivity, status, and high performance, are impossible for rivals to replicate. The brand has been crafted over several decades. It can't be recreated overnight.
Ferrari's brand has a direct impact on the financial performance of this Italian supercar purveyor. Since management strictly emphasizes limited supply, with only 13,640 vehicle shipments in 2025, there is tremendous pricing power. Special models can command price tags in the seven-figure range. And Ferrari's order books fill up quickly, as consumers view these cars as collector's items.
And unlike mass market peers, Ferrari's demand isn't nearly as volatile. It helps that the company caters to the wealthiest people in the world who are somewhat insulated from economic shocks.
Brand strength supports incredible profitability. In the past five years, Ferrari's operating margin has averaged a jaw-dropping 27%. This is yet another reason that it shouldn't be grouped with the rest of the auto industry.
With the shares trading 32% off their record, as mentioned, the market is giving investors a rare opportunity to get in the driver's seat. The stock's price-to-earnings ratio of 34.9 is below its trailing 10-year average. I believe now is a good time to consider adding Ferrari to your portfolio.
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 $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% 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 April 28, 2026.
Neil Patel 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.

Ferrari: Still the Widest Moat in Auto?

Key Points
Mary Barra's nearly $30 million compensation in 2025 tops close Detroit rivals.
GM's targets and incentives are designed to align management and shareholder interests long term.
The automaker is performing well in nearly any metric, and its stock price has soared compared to mainstream rivals.
Like it or not, CEO pay in America continues to rise in comparison to the average employee. It's viewed as necessary to attract top talent in a highly competitive industry and to align shareholders' interests with management in creating long-term value through better product development, increasing market share, operational improvements to grow margins, and others.
Just recently news hit the markets that General Motors' (NYSE: GM) CEO, Mary Barra, was the highest-paid Big Three CEO, and one simple graph shows exactly why.
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How much are we talking?
Mary Barra earned $29.9 million last year, which was a total compensation package worth a modest 1.4% more than the prior year, according to a company filing. The modest increase was largely due to base salary and stock awards being nearly offset by nonequity incentive plan compensation falling 26% down to almost $5 million. Barra's base salary has been consistent at $2.1 million for a few years, and last year her stock awards jumped 11% to $21.6 million, the bulk of the compensation package.
Devin Wenig, chairman of GM's compensation committee, wrote in the SEC filing:
Together, the targets we set for our 2025 compensation program were intended to incentivize management to navigate uncertainty, continue to make great products that our customers love, and drive improved profitability. We believe that these clear and challenging targets rewarded management for delivering results that are fully aligned with our shareholder interests.
The one graph that can justify Barra's pay is a simple one, but it shows the progress GM has made in navigating uncertain trade policy, tariff changes, volatile electric vehicle (EV) demand, and many other speed bumps along the way.
GM has drastically outperformed rivals over the past three years, nearly tripling its closest competitor and trivializing Ford Motor Company's modest gain and/or Stellantis' 50% drop in value. It even greatly outpaced gains at Ferrari, which by many accounts remains one of the top auto investments out there.
Comparison check
Barra's compensation topped that of her closest rival, Ford Motor Company's CEO Jim Farley. Farley's total compensation jumped 11% last year to just over $27.5 million, which was the highest payout he has received since taking over the automaker in October 2020.
It's fair to note that Farley's payout increased at a time Ford reached only 64% of its earnings targets and rather reached the maximum of 200% of quality goals related to newer vehicles (with zero to three months in service).
That could have some investors scratching their heads, as Ford's number of recalls last year set historical records, and quality has been a consistent problem over recent years, even hindering earnings once in a while due to spikes in warranty costs.
For context, Ford obliterated the previous all-time record for the number of recalls, with 153 such campaigns, a record investors would rather leave in the dust. Ford's recalls covered nearly 13 million Ford and Lincoln vehicles, which was drastically larger than Toyota's and Stellantis' 3.2 million and 2.8 million vehicles, respectively. According to Ford, however, the company's internal metrics indicate the automaker is making significant progress on newer vehicles while mounting recalls are from older vehicles in the national fleet.
High-end CEO talent gets paid the big bucks; that much is clear. There are many ways to justify it, but it all comes down to aligning shareholder interests with management. GM has been performing incredibly well in just about any metric and has returned immense value with tens of billions in share buybacks in recent years. Investors might not like the high compensation packages, or perhaps it's a nonfactor, but GM's stock performance speaks for itself on the matter.
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 $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% 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 April 22, 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 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 Big Bucks Are Flowing at GM, and 1 Simple Graph Shows Why It's Worth Every Penny

Key Points
Polestar is unique in that European Volvo and Chinese Geely own significant stakes in the company.
Polestar may glean valuable insight with its connections and production in China.
The young EV maker is going on its largest product offensive in history.
For consumers, the name Polestar (NASDAQ: PSNY) likely doesn't ring a bell. Even for investors, it's not exactly a household name. That gives savvy investors an opportunity, as the global transition to electric vehicles (EV) is very much global, even if Polestar doesn't yet sell in the U.S. market.
Here's a brief introduction to Polestar, what makes the automaker unique, and whether investors should consider the young EV maker when looking for the next high-flying EV stock.
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 »
A brief introduction
Polestar is unique in a number of different ways. First, the company's story starts with motorsports -- not quite Ferrari, but intriguing nonetheless. The brand goes back to Swedish racing team roots founded in the 1990s, which later became Polestar Racing and, in 2015, was acquired by Volvo and turned into an electrified performance brand.
Another intriguing aspect of the company is that while it still maintains European backing, with Volvo still owning a stake in Polestar, it's now majority owned by Chinese automaker Geely. In fact, despite its European roots, Polestar primarily manufactures its EVs in China, with expanding production in the U.S. and South Korea.
The strategy is also unique in that it uses an "asset-light" approach by leveraging Volvo- and Geely-controlled facilities. Further, with Polestar's connection to Chinese automakers, it could find a treasure trove of insight into making advanced and more affordable EVs in the world's largest EV market.
So far, so good?
2025 was a record year for Polestar, for both good reasons and bad. On one hand, Polestar posted record retail sales, topping 60,000 vehicles for 34% growth compared to the prior year. That drove a higher 50% increase in revenue, which surpassed $3 billion.
On the other hand, Polestar's net loss widened to nearly $2.4 billion. In fairness, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved by nearly $300 million compared to the prior year, as the impact of $1.1 billion in impairment charges dinged its metrics.
The company also improved product and fixed costs while reducing head count to drive meaningful savings, improved its capital structure by raising capital and extending loan terms, and is on the cusp of its largest vehicle model offensive in its young history.
Polestar is a unique and intriguing young EV maker, but with low double-digit volume growth guidance for 2026, it has a very slim chance to ever match the acceleration of Tesla's scale in comparable years. Further, considering Polestar's presence in China, which is dealing with a brutal price war, cooling demand, and heading toward industry consolidation, savvy investors would be wise to let Polestar prove it has a clear path to bottom-line profits before considering it as a serious investment.
Should you buy stock in Polestar Automotive Uk Plc right now?
Before you buy stock in Polestar Automotive Uk Plc, 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 Polestar Automotive Uk Plc 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 $499,277!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,225,371!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 198% 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 April 22, 2026.
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.

Is This Overlooked EV Maker the Next High-Flying Tesla? Hint: There's Definite Upside.

Assessing the Rise of Chinese EV Manufacturers

Key Points
Ferrari’s pricing power and impressive margins don’t fit the description of a typical automaker.
With its limited vehicle supply, this company's primary objective is to keep demand elevated, which fosters brand vitality.
The market is presenting investors with a chance to buy shares at a price-to-earnings ratio that’s below the 10-year trailing average.
No investor likes to navigate a volatile market environment. However, this is the time to be aggressive. There could be lucrative opportunities, which might not have been attractive previously, that are worth a closer look.
Ferrari (NYSE: RACE) is one such business that should be on your radar. This luxury stock, up 759% in the past decade (as of April 13), trades 31% off its peak today. And it's well below $400 per share.
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 »
Is it time to buy Ferrari?
Ferrari is not like other automakers
The automotive industry is generally not a good place to look for long-term investment ideas. Cyclical demand, huge capital requirements, low growth and profits, and intense competition aren't favorable traits.
This is not the right way to describe Ferrari, though. The Italian car company should be viewed as a luxury brand, as its supercars are targeted toward the wealthiest people in the world. Besides an intense focus on its racing heritage that drives vehicle design, performance, and technical attributes, Ferrari's operating strategy emphasizes scarcity more than anything else.
The goal is not to sell as many cars as possible. The goal is to maintain the brand's status. This supports incredible pricing power. Ferrari's order book, which is accounted for until the end of 2027, fills up years before cars are delivered to customers, ensuring there's a deep waiting list. And some models, like the Ferrari F80, start out with seven-figure price tags. These are viewed as rare collectibles.
Don't take my word for it. Just look at Ferrari's financials. In the past decade, the company's gross margin and operating margin have averaged a jaw-dropping 50.8% and 24.7%, respectively. And its net revenue is up 149% during that time, demonstrating a stable ascent.
This stock is deserving of a premium valuation
Since Ferrari is in a league of its own in the auto sector, its valuation should not be viewed alongside others. This company deserves to be viewed in isolation simply because it's a unique operation that has proven its worth historically. Therefore, a valuation that looks expensive for peers might actually be a compelling entry point with this business.
I believe this is the case right now. Ferrari's share price is down 31% compared to its record high. The market punished the stock following management's announcement of long-term guidance in October 2025, which called for slower-than-anticipated growth through the rest of the decade. This drawdown was overblown.
Investors can purchase the stock today by paying a price-to-earnings (P/E) ratio of 35.2. This is a historically cheap valuation. In the past 10 years, the P/E multiple has averaged 41.1.
With the share price firmly below $400, the market is presenting investors with a rare opportunity to buy a dominant company with a powerful brand, pricing power, and steady financial gains. It's time to add Ferrari stock to your portfolio.
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 $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% 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 April 15, 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.

Should You Buy Ferrari While It's Below $400?

Key Points
How drastically the Iran conflict impacts automakers depends on the specific situation.
Ferrari will be more impacted due to its high-margin business in the ultra-luxury Middle East market.
Recent developments, including the Iran conflict, have sunk Ferrari's valuation -- giving investors a rare opportunity.
Despite a fragile ceasefire currently, there's still potential trouble brewing from the conflict in Iran. Mainstream automakers such as Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) don't do big business in the Middle East and remain relatively unimpacted by the current Iran conflict.
It's a different scenario for high-flying luxury stocks such as Ferrari (NYSE: RACE), which took a hit in the markets after the Iran conflict began. Dubai (in the United Arab Emirates) has been a massive driver of growth in recent years, and the rising Middle East tensions come at a crucial time in the luxury industry and for Ferrari investors. Here's how much it should concern you.
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 »
Not so luxurious situation
High-end and super-luxury automakers face growing uncertainty across the globe with demand in China and Europe slower, tariffs eroding profits in the U.S., and now the conflict in Iran disrupting a highly coveted luxury region. In fact, according to Bernstein, the Middle East was the fastest-growing luxury market last year. Former Aston Martin CEO Andy Palmer told Automotive News, "For a manufacturer of premium and luxury cars in particular, it's an utter disaster."
Sales in the ultra-luxury Middle East market are very high margin, and brands such as Ferrari, Lamborghini, Jaguar, Land Rover, and Porsche are watching closely to adapt to drastic and sudden changes in demand and distribution capabilities, leaving some to wonder if production cuts could be necessary if the conflict drags on for a few more weeks.
The good and bad news
For Ferrari investors in particular, there's a little more insight. While many luxury automakers don't disclose regional profit margins and some no longer publish global sales figures, Ferrari reported that the Middle East generated 4.6% of total sales in 2025. That's more important than the figure would seem, considering it's a larger market for Ferrari than China, and the Middle East accounted for a lesser 3.5% of Ferrari's total sales only a year earlier.
Despite being a fraction of total sales for Ferrari, supply chain constraints, rising air freight costs, and declining regional demand do present direct and immediate profitability risks. That said, Ferrari does have some flexibility with its long, stable-yet-flexible purchase order book and can redirect vehicles to other regions in many cases.
There is also a risk of further disruption as higher oil prices could weigh on luxury sales, and especially aspirational luxury customers who remain more sensitive to inflation and economic turmoil. Meanwhile, spending by wealthier consumers is more dependent on the stock markets, which could be more negatively impacted by higher oil prices spurring a downward trend in global markets. Between the recent Iran conflict and Ferrari's 2030 guidance disappointing analysts -- remember that Ferrari has a tendency to lowball guidance -- it's giving investors a rare opportunity to purchase the stock at a lower valuation.
What it all means
Ultimately, while the war in Iran is hitting ultra-luxury companies such as Ferrari, and is certainly disrupting highly coveted high-margin sales, investors should view this as a speedbump for now.
Ferrari has durable competitive advantages that span the globe, a brand image that took decades to curate and strengthen, and margins that handily beat the competition. The Iran conflict is a definite negative for Ferrari business, but investors should also see this as an opportunity to scoop up shares of a long-term winner at a time of uncertainty.
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 $550,348!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 191% 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 April 10, 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 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.

Iran Conflict Threatens Lucrative Luxury Stock -- Time to Panic, or Time to Buy?

Key Points
Ferrari is successfully maintaining a luxury image, offering very expensive cars.
It thereby enjoys a fat profit margin.
Its growth has slowed a bit recently, but it's still growing.
When I'm asked about the best auto-related stocks to own for the coming decade, two names come to my mind first: AutoZone and O'Reilly Automotive. Each has averaged annual gains of around 20% or more over the past 15 years.
But each seems overvalued at recent levels, too -- and it's important to not only invest in great companies, but to do so at good or great prices.
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 »
So here's a different automotive stock to consider: Italian automaker Ferrari NV (NYSE: RACE). While a Ferrari car can cost you $250,000 to $500,000 or more, a share of the company's stock was recently going for around $390. Ferrari stock has averaged annual gains of 23% over the past decade, and is down 27% over the past year (as of March 30).
Thus, the shares seem attractively priced, with a recent forward-looking price-to-earnings (P/E) ratio of 30 well below the five-year average of 41, and the price-to-sales ratio of 7.2 below the five-year average of 9.4.
So let's take a closer look at why you might invest in Ferrari. For starters, know that its stock has slumped due in part to worries about the effect of tariffs and to underwhelming projections from management. Revenue has been growing, but growth has recently slowed some.
In Ferrari's fourth quarter, revenue was up 7% year over year, with operating profit up 12%. Remarkably, the company's net profit margin was a hefty 21%. That points to Ferrari's business model, which is centered around selling fewer products at a higher price. This helps the company maintain an exclusive, luxury image. (Its upcoming F80 costs an eye-popping $4 million or so, and is already sold out.) Companies can succeed like that, but many others chase high volume and accept lower profit margins.
So give Ferrari some consideration, and remember that there are other promising auto stocks out there, and plenty of great growth stocks, too.
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 $515,294!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,077,442!*
Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 184% 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 April 3, 2026.
Selena Maranjian 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.

What Is One of the Best Auto Stocks to Own for the Next 10 Years? (Hint: An Upcoming Model Costs Nearly $4 Million.)

Key Points
As the retail auto industry consolidates, Carvana is positioned to thrive and expand.
Ferrari spent decades building its racing technology and a winning brand that would be near impossible to replicate.
Nvidia is becoming the backbone of booming AI development in multiple areas.
Buying stock in companies with competitive advantages and holding it forever seems like a simple strategy -- until it isn't. Consider that more than half of the current S&P 500 components weren't a part of the index two decades ago. In fact, since 1980, roughly one-third of them have turned over every decade.
Investors may remember in 2000 when Blockbuster said "no thanks" to buying Netflix for $50 million. By 2010, Netflix had disrupted the industry and sent Blockbuster packing into bankruptcy.
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 »
That's all to say that finding lucrative stocks to hold forever is not all that easy. The following three unique companies, however, may just be well-enough positioned to thrive indefinitely.
Bring on consolidation
Carvana (NYSE: CVNA) emerged from potential restructuring or bankruptcy scares over the past three years and has turned into a more efficient, vertically integrated, and profitable company as a result.
The good news is that the used-car industry is incredibly fragmented and poised to drastically consolidate in the coming years, and Carvana should be in position to thrive. Consider that there are over 43,000 used-car dealerships in the U.S., and the largest dealer brand's market share is 2.3%. And the aggregate market share of the top 100 used-car dealer groups barely tops 11%.
Industry consolidation is already happening, and when it accelerates, the better business models will almost certainly emerge as winning investments -- and Carvana is ready. Until recently, its business model was pure e-commerce with car "vending machines" sprinkled across the nation.
Its national vehicle acquisition strategy, optimized for large-scale inventory and seamless online transaction and pickup options, can build up scale much more quickly than traditional dealership groups -- and it does so at better margins (which are still growing with improved scale) than the largest dealership group, AutoNation.
Carvana has built a better mouse trap in an industry where scale matters and competitors are fragmented. It is poised to thrive amid industry consolidation -- all investors need to do is wait patiently.
Win on Sunday, sell on Monday
Even with Ferrari's (NYSE: RACE) overblown roughly 34% sell-off over the past six months, its stock has nearly tripled S&P 500 returns over the past decade. It is arguably the best automotive stock in the world, one of the best luxury stocks, and owns competitive advantages that would take decades to replicate, if ever.
Ferrari has done almost everything the opposite way from the traditional auto industry. For decades, it spent next to zero on traditional advertising, instead relying on racing results and reputation.
While traditional automakers prize high-volume and scale, Ferrari limits its sales and production to drive its exclusivity and pricing power to unthinkable heights. Auto investors loathe dealing with industry cycles and economic downturns, but the Italian automaker is resilient to both, thanks to its large, loyal, and wealthy customer base and long list of returning buyers.
The business consistently ranks among the world's most powerful brands, building its core image over a three-decade span between 1930 and 1960. It had a racing-first strategy, and after dominating many forms of competition in the Fifties and Sixties, the company slowly transitioned from a specialized racing team into a global luxury and performance brand.
If there's one graph that can summarize how impressive Ferrari's combination of competitive advantages are, it's a long-term graph of operating margins versus industry stalwarts.
Not only does its operating margins dwarf the competition, but you can also see consistent growth over the past decade, because the company is still building its brand, pricing power, and scale. Ferrari races and wins on Sunday, sells lucrative vehicles on Monday, and investors can take that to the bank for a long, long time.
A strong backbone
There are many reasons to buy into Nvidia (NASDAQ: NVDA) for the long term, including its high growth rates and exceptional gross and operating margins. And there's the fact that it is continuously topping analysts' estimates and expectations, the company's durable competitive advantages, and the built-in developer dependence on its ecosystem. Despite a huge market cap that tops $4 trillion, its valuation is considered fair by most analysts -- and even a bargain to some.
Right now, however, a primary reason to buy into Nvidia and hold forever is because of its dominance in artificial intelligence (AI), as it provides the graphics processing units (GPUs) that power AI data centers across the globe. Demand for its chips is strong, and with data center demand expected to grow substantially through 2030, the company is set up to become the backbone of AI infrastructure expansion.
Nvidia even has a growth story that revolves around automaking. The chipmaker's auto business is poised for significant growth driven by surging demand for AI in vehicles.
Driverless vehicles that are rising in levels of autonomy and more software-defined vehicles on the road set the stage for this segment of its business to become a much more significant part of the company's top and bottom lines for decades.
Buy forever
Buying and holding forever isn't as simple as many investors think, and it can honestly be a bit scary to imagine holding forever when the turnover of top businesses happens so frequently. That said, Ferrari, Nvidia, and Carvana are unique, with competitive advantages poised to last for a long time. Investors might be wise to start a position and watch these businesses do the talking.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, 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 Nvidia 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 $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% 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 March 30, 2026.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari, Netflix, and Nvidia. 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.

3 Lucrative Stocks to Buy Now and Hold Forever

The Nomura Focused Large Growth ETF is seeing unusually high volume in afternoon trading Monday, with over 699,000 shares traded versus three month average volume of about 69,000. Shares of LRGG were up about 1% on the day.
Components of that ETF with the highest volume on Monday were Nvidia, trading up about 1.4% with over 100.9 million shares changing hands so far this session, and AMAZON.COM, up about 2.8% on volume of over 22.7 million shares. Ferrari is the component faring the best Monday, up by about 4.2% on the day, while Costar Group is lagging other components of the Nomura Focused Large Growth ETF, trading lower by about 1.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monday's ETF with Unusual Volume: LRGG

Key Points
Ford dominates the market for pickup trucks and SUVs, but its shares are cheap for a reason.
Ferrari’s financial profile doesn’t resemble a typical car company, a nod to its incredible brand power.
The best stock to own has what it takes to generate a higher return over the next five years.
This year hasn't been the best for Ford (NYSE: F) and Ferrari (NYSE: RACE). The Detroit auto stock has seen its share price tank 10% (as of March 18) in 2026. The Italian brand is in the same lane, as its shares are down 11%.
Shares in both businesses are currently trading well below their peak prices, so this should prompt opportunistic investors to take a closer look under the hood. Is Ford or Ferrari the better industrial stock to buy right now?
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 »
Ford's leading position in trucks and SUVs doesn't mask its unfavorable fundamentals
Ford's F-Series pickups were once again the best-selling vehicles in America in 2025. This continued an incredible streak, now at 44 years, that they've held this position. Ford is a leader in the market for SUVs, as well. This is a good position to be in, since trucks and SUVs carry higher price tags and better margins.
However, this hasn't translated to a strong financial performance -- at least over the long term. Because Ford is a mass market auto manufacturer, its growth and profits are usually disappointing, compared to companies in other sectors.
For example, Ford's revenue is projected to increase at a compound annual rate of less than 1.8% over the next three years, according to analysts' consensus estimates. Also, its adjusted operating margin came in at 3.6% in 2025.
Without strong growth and profit gains, Ford doesn't have what it takes to generate winning returns for investors. That's true even though the stock's valuation is cheap, as it trades at a forward price-to-earnings ratio (P/E) of 8.1. Over the past decade, the shares have produced a disappointing total return of 50%.
Ferrari's superb financial performance is worth the premium price tag
During the last decade, Ferrari shares have climbed 674%, and right now, the luxury stock trades at a forward P/E of 29.6. That premium valuation might actually present an attractive entry point for prospective investors.
That's because Ferrari isn't a typical car company and caters to the wealthiest buyers. Therefore, demand is significantly less cyclical than the rest of the industry. Management doesn't try to sell as many vehicles as possible, focusing instead on scarcity and supporting the brand's value. This leads to incredible pricing power.
The financials reflect Ferrari's strategic priorities. Revenue increased 7% in 2025, despite shifting trade policies presenting a notable headwind. And in the past five years, the company's operating margin has averaged an unbelievable 27%.
Ferrari is clearly winning the race against Ford. It's an outstanding business due to its brand, pricing power, steady growth, and impressive profits.
Over the next five years and beyond, the Italian supercar company is poised to generate a higher return for shareholders. It's the better stock to buy over Ford.
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 $494,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,094,668!*
Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 186% 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 March 21, 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.

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