Ferrari (NYSE:RACE) stock is up 25.6% since the turn of the year. Yes, it’s a company that makes cars, but it’s also a luxury goods manufacturer, and its stock has outperformed all of its major luxury peers this year. With its Q1 results disappointing investors, the surging share price has a lot to do with momentum and possibly the announcement that Lewis Hamilton would join the Ferrari F1 team for the 2025 season. Nonetheless, I’m neutral on this stock due to its high valuation.
Ferrari’s Q1 Results
Ferrari’s stock took a hit following its Q1 results in early May. The luxury car manufacturer reported earnings per share of €1.95, up from €1.63 in the same period last year. Its adjusted EBIT margin also improved by 100 basis points. While this surpassed the consensus estimate by €0.10, and revenue rose 11% to €1.585 billion, it wasn’t all rosy.
Investors’…
