Strength Seen in Ferrari (RACE): Can Its 3.2% Jump Turn into More Strength?

Ferrari (RACE) shares soared 3.2% in the last trading session to close at $426.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 13.8% loss over the past four weeks.

Ferrari stock has climbed after the luxury automaker announced a 10% price increase on select models starting April 1 to counter new U.S. auto tariffs. Despite this adjustment, Ferrari stated it remains committed to its financial targets for the year, according to a Reuters report.

This luxury sports car maker is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +8%. Revenues are expected to be $1.81 billion, up 5.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ferrari, the consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on RACE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Ferrari is a member of the Zacks Automotive – Original Equipment industry. One other stock in the same industry, Adient (ADNT), finished the last trading session 10.5% lower at $13.51. ADNT has returned -10% over the past month.

For Adient , the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $0.32. This represents a change of -40.7% from what the company reported a year ago. Adient currently has a Zacks Rank of #3 (Hold).

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