When thinking about auto manufacturers to invest in, Ferrari (RACE) doesn’t immediately come to mind, if it comes to mind at all. However, this manufacturer of sleek and fast cars has been on an uptrend over the last 5 years as shares returned a whopping 212.11%.
The Short Story
Today the company hit a new all time high at $343.85/share which represents a 59.8% gain YTD on the back of earnings prowess and strong demand. Ferrari managed to beat earnings on all of its earnings reports in 2023 thus far to the tune of 7.76%, 3.56%, and 15.80% respectively. More on that, the earnings beats are a result of incredible demand for the automakers vehicles that stretch all the way into 2025 when the company plans on launching its first EV.
In addition, over the last 18 months, Ferrari has been extremely successful at charging more money for personalized additions to its vehicles at a time when its order book is at its highest levels across all geographies. As of right now, Ferrari has been selling through its gas and hybrid models at a record pace which has led to all Ferrari models (except for 1) being sold out in the coming months (according to CEO, Benedetto Vigna). Hybrid deliveries for the company represented 51% of total shipments in Q3 as the company gets serious about its transition to EVs. It’s been win, win, and more winning for the legendary car maker that has been quick on its feet in 2023.
With an EV debut on the horizon in Q4 2025, strong revenue and earnings growth, a quick ratio of 2.8, and a strong order backlog, it’s easy to see why market participants are flocking to this sports car manufacturer. Time will tell if this can continue into the future, but for right now, Ferrari is the only auto manufacturer hitting new all time highs in the stock market.