5 Best Auto Stocks To Buy Now

In this article, we discuss 5 best auto stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Auto Stocks To Buy Now. 

5. Ferrari N.V. (NYSE:RACE)

Number of Hedge Fund Holders: 33

Ferrari N.V. (NYSE:RACE) is an Italian automaker that designs, engineers, and sells luxury performance sports cars. On November 2, the company posted Q3 2022 results, reporting a non-GAAP EPS of €1.23, beating market estimates by €0.07. The revenue of €1.25 billion climbed 19.0% on a year-over-year basis, exceeding Wall Street consensus by €50 million. The total shipments of 3,188 units during the third quarter jumped 15.9% compared to the prior-year quarter.

On October 27, investment advisory HSBC upgraded Ferrari N.V. (NYSE:RACE) to Buy from Hold. Analyst Edoardo Spina issued the ratings update. 

According to Insider Monkey’s data, 33 hedge funds were bullish on Ferrari N.V. (NYSE:RACE) at the end of the second quarter of 2022, compared to 31 funds in the last quarter. Anand Desai’s Darsana Capital Partners is the largest position holder in the company, with 1.25 million shares worth $229.35 million. 

Here is what Ensemble Capital has to say about Ferrari N.V. (NYSE:RACE) in its Q1 2022 investor letter:

“Ferrari (7.3% weight in the Fund): As WE DESCRIBED a year ago in this letter, Ferrari’s chief marketing officer’s hardest job is not getting people to buy a Ferrari, but to tell some of them no. The company is in the business of selling rare, luxury products and so by design they greatly limited the number of vehicles they sell. This extreme constraint has led to a wait list of well over a year with a customer base so devoted to the company that even in the midst of the Financial Crisis of 2008-09, the number of vehicles they sold only declined by 4%. Their customers are so price insensitive, that the company often sells out of their limited edition super cars that sell for millions of dollars before they even announce the price. For a Ferrari collector the high prices are a feature, not a bug, as it is the price that makes Ferrari ownership so exclusive.”