5 High Growth High Margin Stocks to Buy

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

EPS Next 5 Year Ratio According to FINVIZ.com: 26.23%

Profit Margin According to FINVIZ.com: 20.33%

Number of Hedge Fund Holders: 31

Based in Maranello, Italy, Ferrari N.V. (NYSE:RACE) is among the world’s leading luxury brands, focused on the design, engineering, production, and sale of the world’s most recognizable luxury performance sports cars. Its Formula 1 racing team, Scuderia Ferrari, is the most successful racing team in the history of Formula 1 having won 242 Grand Prix races, 16 Constructors’ World titles and 15 Drivers’ World titles.

On November 2, Ferrari N.V. (NYSE:RACE) released its results for Q3 2023. Its revenue increased by 24% y-o-y to €1.5 billion, while net income went up by 46% y-o-y to €332 million. The company also raised its guidance for FY 2023 revenue from €5.8 billion to €5.9 billion.

Following the earnings release, Evercore ISI Group analyst Michael Binetti initiated coverage of Ferrari N.V. (NYSE:RACE) shares with a price target of $375 and an ‘Outperform’ rating. The target price represents a potential upside of 11.79% based on the share price on December 21.

Like other stocks such as Booking Holdings Inc. (NASDAQ:BKNG), Alphabet Inc. (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT), Ferrari N.V. (NYSE:RACE) is among the 12 high growth high margin stocks to buy.