f you’re wondering whether Ferrari stocks are in the race to win, then you need to consider the history, the impact of the pandemic and the possible return on investment.
Ferrari has earned the reputation for being the most famous brand in Formula 1 racing history and has become an icon in the sport.
As an exclusive car brand, people have invested in Ferrari for years – either by purchasing one of the limited vehicles produced each year or putting money towards Ferrari stocks.
But is it worth investing in Ferrari stocks today?
History of trading Ferrari stocks
COVID-19 pandemic had a negative impact on the automotive industry as a whole. By April 2020, sales had dropped 47 per cent in the United States, and a notable 80 per cent in Europe.
However, Ferrari stocks remained resilient.
By April 2020, Ferrari had dropped less than 7 per cent. Much of this resilience is credited to the exclusivity that the brand holds. Consider that in 2020, only 9,119 Ferrari vehicles were shipped, meaning that ownership remained exclusive and the trade valuation was high.
Further, an overwhelming majority of 16 Wall Street analysts gave Ferrari stocks a “buy” rating. In contrast, five gave it a “hold” rating and only two gave it a “sell” rating.
As a capital-intensive business, Ferrari has leveraged their high demand to maximise its pricing power, notably boosting its operating margin.
Are Ferrari stocks worthy of investment?
Ferrari securities were made available for public trading in October 2015 on the NYSE under the ticker RACE. As well as the MSE of Milan under a similar ticker.
Since then, Ferrari stocks have remained more expensive when compared to other automaker stocks. Some experts even consider Ferrari outside of the automotive sector.
Ferrari stocks have since been listed on exchanges around the world including Germany, the United Kingdom, and Switzerland.
While Ferrari proved its resilience and continued exclusivity during the pandemic, the top car stocks for Q1 2022 don’t even mention Ferrari. Instead, the best value car stocks are Porsche Automobil Holding SE (POAHY) while the fastest growing car stocks belong to Tesla (TSLA) with revenue growth of 56.9 per cent.
Even so, Ferrari has been making an annual dividends payment in the range of 0.6 to 1.5% each year since 2016. The trend is expected to continue for a couple more years. Alternatively, investors can buy Ferrari N.V. (RACE) stock in any dollar amount on the exchange.
As far as physical ownership is concerned, the cost of a new Ferrari doesn’t fall below $200,000, which makes the barrier to entry significantly high.
Financial trading platform for Ferrari stocks
History has shown Ferrari stocks to be resilient and consistent, despite the influence of external factors such as the pandemic. The exclusivity of the brand and the limited number of cars produced play a role in keeping demand and valuation high.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only