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.

Средний индекс, незначительно упал. Рынок на стороне быков.

Medium index, slightly down. The market is on the bulls' side.

Слабый индекс, незначительно упал

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.
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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.
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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.
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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.

Ferrari Is Still Under $400. Here's Whether Long-Term Investors Should Pounce.

Has Ferrari Lost Its Mind?

Key Points
Ferrari is taking one of the brand's biggest risks, bringing its first full-electric vehicle to market.
The luxury carmaker's stock declined after its unveiling due to a negative backlash on its design.
Ferrari's Purosangue was also met with hefty pushback before turning into a massive success.
Ferrari (NYSE: RACE) is taking on a big risk launching the Luce, the company's first fully electric vehicle (EV). One part of the broader risk is that there might not be a market for ultra-high-end EVs, which was a reason rival Lamborghini canceled its first planned full EV. It was also a sizable risk for the brand to develop an EV when it drifts away from its heritage of racing-inspired designs and powerful, loud combustion engines.
If Ferrari's goal was to get everyone talking about the Luce, it was a resounding success. If Ferrari's goal was to convince everyone the Luce was a true Ferrari product design, the initial feedback was overwhelmingly negative. Ferrari's stock initially traded lower after the unveiling, but for savvy investors, Ferrari's risk presents an opportunity.
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 »
What are people saying?
That Ferrari's Luce was unveiled with a shocking design probably shouldn't surprise anyone, considering that the new four-door, five-seat "family car" was designed largely by auto industry outsiders Jony Ive and Marc Newsom. The backlash was intense and wasn't limited to social media, as even the Italian deputy prime minister, Matteo Salvini, weighed in, along with former Ferrari CEO Luca Cordero di Montezemolo.
Social media did what it does: create a plethora of unflattering memes and comments that compared the Luce with anything from a toaster to a vacuum, or famously failed designs in the past that rank as some of history's ugliest vehicles. Salvini questioned what Ferrari founder Enzo Ferrari would make of the Luce, and Montezemolo went as far as to suggest the Luce should be stripped of the automaker's famous prancing horse logo.
Things to consider
All is not lost, Ferrari enthusiasts and investors, and there are many things to consider. Enthusiasts, fans, and traditionalists hate change, and typically, negative opinions are much louder than positive ones. Let's also remember that the vast majority of loud opinions on social media aren't from potential Ferrari consumers.
It's important to keep in mind that when the Luce was unveiled, it was eyes-only -- not a single person got to test-drive it. That's a shame, because Ferrari went into the unveiling with essentially one arm tied behind its back, with critics and journalists unable to get behind the wheel and feel what a 1,050-horsepower vehicle with four independent motors can do on the road.
The Luce may not look like a Ferrari. Still, it should perform just as impressively with that amount of power, which propels the Luce from 0 to 100 km/h within 2.5 seconds, and an active suspension derived from the F80, a nearly $4 million supercar.
History is also filled with examples of initial reactions that didn't hold up over time. Even Ferrari has its own example with the Purosangue. The move was shocking at the time, considering Ferrari had actively refused to join the luxury crossover and SUV trend, preferring to stick with only sports cars. Eventually, Ferrari gave in -- mostly, as it refused to label the vehicle an SUV despite being its first-ever four-door four-seater -- and the Purosangue flipped initial criticism on its head and became a significant commercial and financial success, as well as a growth driver, with initial orders pouring in four times faster than Ferrari anticipated.
What it all means
Ultimately, while the backlash for Ferrari's Luce has been loud, investors would be wise to let the dust settle and remember what Ferrari still is. Ferrari is still a recession-resistant stock, as its core consumer base isn't as affected by financial downturns. Ferrari is still highly exclusive, and its products are not simple to purchase. Let's be honest: Ferrari will probably still sell out of the Luce from loyalists alone. Ferrari still boasts EBIT margins that have consistently improved over the past decade and hover around 39%, and the Luce in all likelihood won't cripple the company's highly lauded margins.
Ferrari is taking a risk with the Luce, no doubt, and a design flop certainly wouldn't be positive for its pristine brand image. But Ferrari as an investment has been about as rock solid as you can get, especially in the automotive industry known for thin margins, and bridges the gap between automakers and ultra-luxury products. Given the risk the Luce introduces and recent months of declining stock prices, Ferrari is giving investors a rare opportunity to scoop up shares at a lower valuation.
The Italian carmaker is still a fantastic investment, and that isn't likely to change anytime soon.
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 $449,393!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% 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 3, 2026.
Daniel Miller 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's Massive Risk Gives Investors Rare Opportunity

Key Points
Ferrari's Luce -- the ultra-luxury car maker's first full-electric vehicle -- just made its debut.
Even as Lamborghini pulls back on its full-electric vehicle, Ferrari is opting to lead the way.
Investors have yet to warm up to the Luce, and notable risks remain if demand fails to materialize.
Ferrari (NYSE: RACE) found itself in an interesting spot when it came to full-electric vehicles (EVs). One could argue the supercar maker, known for its racing heritage, was in a great position as its pricing power should enable its EVs to be instantly profitable unlike the vast majority being produced now.
However, Ferrari had to protect the emotional experience that consumers have with driving its supercars; the rumble of a V8 or V12 engine, the exhaust tones, and the dynamic agility that might be compromised with bulky EV battery technology. For those reasons, among others, Ferrari had delayed its first full EV, choosing to push hybrids instead.
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 »
Now the time has come, and Ferrari's first all-electric vehicle, named Luce, guarantees to be polarizing for both investors and consumers.
Uncertainty remains
Make no mistake, Ferrari is taking a risk launching the Luce, especially considering Lamborghini canceled its full-electric vehicle plan set to launch in 2030, noting there's almost no market for electric supercars currently.
"A lot of people won't admit that, but a lot of these CEOs know there's no market for these pure EV, high-end supercars." Karl Brauer, executive analyst for iSeeCars, told CNBC.
Ferrari has backed off its initial ambitious EV plans, noting back in October that it now expects EVs to make up roughly 20% of its sales, about half of what it previously expected. Further, Ferrari delayed plans for its second EV model until at least 2028. If the Luce were to launch with very little demand, it could have significant impact on Ferrari's impeccable brand that consistently ranks among the top across the globe.
That said, if any automaker can pull this off, it's certainly the iconic Italian supercar maker. "Ferrari has been one of the most successful companies in Europe, period," said RBC Capital analyst Tom Narayan, according to CNBC. "Not even in autos, just in general. It's been a smashing success."
This development also needs context. Consider that Ferrari sells only roughly 14,000 vehicles annually, and keeps a lid on its book order to keep exclusivity high, and supply just short of demand to support its pricing power and lucrative margins. In that reality, Ferrari only needs to sell between 500 and 1,000 Luce EVs annually for it to be a success, and that should be easily achievable for a company that has people lining up out of the door and waiting on long lists to get their hands on anything Ferrari.
What it all means
The highly anticipated, and likely polarizing, Ferrari Luce is also a notable departure from typical designs and the shock factor contributed to Ferrari stock's roughly 6% decline after the unveiling. In fact, this year has presented savvy long-term investors with a rare opportunity to start a position in the automaker that typically trades at sky-high valuations.
However, investors should note that Ferrari's consumer base may be more ready to adopt its full-EVs. Consider that in 2025, 42% of its global shipments were hybrids. Investors should also take the initial decline of Ferrari stock with a grain of salt, because consumers and traditionalists hate change; Ford Motor Company saw this exact scenario years ago with its iconic Mustang Mach-e, which was initially met with massive resistance and "hate," only for it to eventually outsell the traditional gasoline-powered Mustang.
There's certainly a downside if the Luce were to completely flop with Ferrari's consumer base, but even that speed bump wouldn't break the automaker, which is valued more like an ultra-luxury brand, rather than a traditional automaker. Further, Ferrari's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins check in near 40%, has a history of robust shareholder returns, boasts unmatched pricing power and a fortress of an economic moat built from decades of racing heritage and technology filtering to its supercars.
In all likelihood, when the dust settles from the Luce unveiling, Ferrari will keep winning, and so will long-term investors.
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 $465,733!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,313,467!*
Now, it’s worth noting Stock Advisor’s total average return is 985% — 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 May 29, 2026.
Daniel Miller has positions in Ford Motor Company. 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 Launches Most Polarizing Vehicle in History -- It's Time to Buy the Stock

(RTTNews) - Ferrari N.V (2FE.DE) revealed its first all-electric car, the Luce, in a bold move into the luxury EV market, even as demand for high-end electric sports cars has recently dipped.
This new four-door model, which translates to 'light' in Italian, was crafted with the help of Jony Ive and his design team at LoveFrom. Notably, it's Ferrari's first car designed to fit five passengers, targeting wealthy families who want a mix of high performance, luxury, and cutting-edge tech.
With a price tag of around 550,000 euros, about $640,000, the Luce is set to start deliveries in late 2026. It boasts over 1,000 horsepower thanks to four electric motors, one at each wheel, and can reach speeds over 310 kilometres per hour while offering a driving range of more than 500 kilometres.
CEO Benedetto Vigna mentioned that this vehicle is the product of five years of hard work. Ferrari's team believes the Luce is meant for those wanting a unique driving experience while still capturing the brand's signature feel, enhanced by electric vibrations and sounds.
On top of that, Ferrari aims to boost its presence in markets like China, where electric vehicles are becoming the norm, and taxes on large gasoline engines are hefty.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Unveils $640,000 Electric Luce On Luxury EV Future

Key Points
This car company’s robust brand supports ongoing pricing power, which leads to incredible profits.
Investors might be nervous about an upcoming product launch, even though the business exceeded analyst estimates in Q1.
Despite a winning long-term track record, this stock trades 36% below its peak, resulting in a compelling valuation.
It seems like all the attention in recent years has gone to the artificial intelligence trade. This is understandable. The poster child of this boom, Nvidia, is trying to close in on a mind-boggling $6 trillion market cap.
Investors should learn to expand their horizons, though. Even in areas of the market that might appear boring, such as the industrial sector, there can be worthwhile opportunities, like this special company. Continue reading to learn about the best industrial stock to own for the next 10 years.
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 »
These favorable traits highlight a high-quality business
The business investors should focus their attention on is Ferrari (NYSE: RACE), the Italian carmaker that stands out in the industry. There are notable factors indicating that this is an outstanding company.
Ferrari's success ultimately depends on its brand, which is recognized as a luxury one in the industry. The business intentionally limits the volume of cars that it makes and sells, supporting incredible demand.
This strategy leads to pricing power, with Ferrari cars costing as much as houses do. Some models even fetch seven-figure price tags. Consequently, the business generates impressive profits. Its operating margin came in at 29.7% in the latest quarter.
Perhaps an overlooked characteristic is that this company would likely fare well in an adverse economic scenario, something that can't be said about the mass market auto sector. Because Ferrari caters to an ultra-wealthy population -- a group that can probably still buy expensive cars in recessionary periods -- its financials don't experience much volatility.
Now is a great time to buy this market-beating stock
On May 5, Ferrari reported financial results for its first quarter, which ended on March 31. The company beat Wall Street analyst estimates on the top and bottom lines, and management reiterated full-year guidance. That's the good news.
But this didn't help boost the share price, which has been experiencing a notable decline for almost a year. Ferrari's stock trades 36% below its all-time record from July 2025. With the recent news, the market might not have been pleased with the company's year-over-year decline in vehicle shipments.
Investors could also be nervous about the upcoming launch of Ferrari's first fully electric car, called Luce. It's set to be revealed this month. A lot of attention will be paid to how customers perceive the new vehicle, as anything less than robust demand will be viewed as a failure.
However, the shares still possess a stellar long-term track record. In the past decade, Ferrari's stock is up 694%, crushing the 328% total return of the S&P 500 index.
Shares can now be purchased at a price-to-earnings ratio of 32. This is a compelling valuation that's 21% below the automotive stock's historical average. Ferrari looks like a smart buy-and-hold opportunity for investors with a 10-year time horizon.
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 $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!*
Now, it’s worth noting Stock Advisor’s total average return is 990% — 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 May 21, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari 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.

1 of the Best Industrial Stocks to Own for the Next 10 Years

Key Points
Despite lower deliveries, Ferrari topped analyst estimates.
Rival Lamborghini canceled its first full-electric vehicle, citing low demand.
Ferrari is supporting its residual values by focusing on value, rather than volume.
Despite the Iran conflict threatening to slow Ferrari (NYSE: RACE) in the first quarter, the iconic supercar maker still beat earnings estimates. Ferrari also confirmed its full-year guidance, suggesting its strategy to bring forward certain deliveries in other regions has mitigated any impact in the Middle East, which remains an important luxury goods hub. While Ferrari topped estimates, the stock continued its year-long slide lower.
What's got investors so anxious?
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 »
By the numbers
Ferrari delivered 3,436 vehicles during the first quarter, which was down a modest 157 vehicles from the previous year. Despite a slight decline in shipments, Ferrari posted a 3% increase in revenue to 1.85 billion euros, or $2.16 billion, topping analysts' consensus estimates of 1.83 billion euros. It was a similar story for adjusted earnings per share, which checked in at 2.33 euros per share, ahead of the 2.31 euros per share expected by analysts.
Part of Ferrari's slide lower could stem from investor concerns that pulling some deliveries forward to offset the disruption in Iran could hinder earnings for the rest of the year. However, Ferrari mostly squashed that notion when it confirmed its full-year guidance of 9.45 euros in adjusted earnings per share on net revenue of 7.5 billion euros. Further, Ferrari's strong sales mix and demand for personalization supported margins.
What's likely to have investors a bit anxious is the premiere of Ferrari's Luce, the automaker's first full-electric vehicle, in a couple of weeks. Ferrari is taking a risk that there will be demand for such a high-end electric vehicle, especially at a time when rival Lamborghini canceled its first full-electric vehicle, the Lanzador, and will shift the concept into a plug-in hybrid. Concerning investors, Lamborghini said interest in a full-electric vehicle in its target market was "close to zero."
What it all means for Ferrari stock
The Luce will be a true test of Ferrari's pricing and brand power as wealthy consumers generally buy a Ferrari knowing its residual value will remain high, but that could waver if demand for a high-end electric vehicle is weaker than expected. Ferrari's initial strategy will be to price the Luce at about 550,000 euros, according to Automotive News sources. That price tag will put the EV above the company's popular Purosangue, which starts at roughly 450,000 euros.
It's really a continuation of Ferrari's broader strategy to keep prices and values high, rather than targeting volume sales. Despite some uncertainty around the Luce premiere, Ferrari's order book extends into the end of 2027, and investors should expect consistent, strong results in the near term.
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Daniel Miller 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 Beat Estimates. So Why Is the Stock Down?

The following companies are expected to report earnings prior to market open on 05/05/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Eaton Corporation, PLC (ETN)is reporting for the quarter ending March 31, 2026. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.74. This value represents a 0.74% increase compared to the same quarter last year. In the past year ETN has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ETN is 32.00 vs. an industry ratio of 24.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Shopify Inc. (SHOP)is reporting for the quarter ending March 31, 2026. The internet services company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.22. This value represents a 22.22% increase compared to the same quarter last year. SHOP missed the consensus earnings per share in the 4th calendar quarter of 2025 by -7.32%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for SHOP is 93.88 vs. an industry ratio of 45.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Pfizer, Inc. (PFE)is reporting for the quarter ending March 31, 2026. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.71. This value represents a 22.83% decrease compared to the same quarter last year. In the past year PFE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 15.79%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PFE is 8.81 vs. an industry ratio of 15.40.
Duke Energy Corporation (DUK)is reporting for the quarter ending March 31, 2026. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.79. This value represents a 1.70% increase compared to the same quarter last year. DUK missed the consensus earnings per share in the 4th calendar quarter of 2025 by -0.66%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DUK is 19.19 vs. an industry ratio of 17.80, implying that they will have a higher earnings growth than their competitors in the same industry.
KKR & Co. Inc. (KKR)is reporting for the quarter ending March 31, 2026. The finance/investment management company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.12. This value represents a 2.61% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for KKR is 19.02 vs. an industry ratio of 13.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Cummins Inc. (CMI)is reporting for the quarter ending March 31, 2026. The engines company's consensus earnings per share forecast from the 6 analysts that follow the stock is $5.60. This value represents a 6.04% decrease compared to the same quarter last year. In the past year CMI has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 11.73%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CMI is 25.24 vs. an industry ratio of 25.20, implying that they will have a higher earnings growth than their competitors in the same industry.
American Electric Power Company, Inc. (AEP)is reporting for the quarter ending March 31, 2026. The electric power utilities company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.55. This value represents a 0.65% increase compared to the same quarter last year. AEP missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -0.55%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AEP is 21.63 vs. an industry ratio of 17.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Marathon Petroleum Corporation (MPC)is reporting for the quarter ending March 31, 2026. The oil refining company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.72. This value represents a 400.00% increase compared to the same quarter last year. MPC missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -3.22%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MPC is 9.36 vs. an industry ratio of 12.80.
Energy Transfer L.P. (ET)is reporting for the quarter ending March 31, 2026. The oil/gas company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.38. This value represents a 5.56% increase compared to the same quarter last year. The last two quarters ET had negative earnings surprises; the latest report they missed by -26.47%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ET is 13.12 vs. an industry ratio of 5.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Transdigm Group Incorporated (TDG)is reporting for the quarter ending March 31, 2026. The aerospace and defense company's consensus earnings per share forecast from the 4 analysts that follow the stock is $8.60. This value represents a 1.30% increase compared to the same quarter last year. TDG missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -0.22%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for TDG is 31.45 vs. an industry ratio of 39.80.
Ferrari N.V. (RACE)is reporting for the quarter ending March 31, 2026. The auto (truck) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $2.70. This value represents a 11.57% increase compared to the same quarter last year. In the past year RACE has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.05%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for RACE is 30.07 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry.
MPLX LP (MPLX)is reporting for the quarter ending March 31, 2026. The oil (production/pipeline) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.05. This value represents a 4.55% decrease compared to the same quarter last year. MPLX missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -3.74%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MPLX is 12.95 vs. an industry ratio of 23.00.
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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