5 Stocks Hedge Funds Are Talking About Right Now

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

2024 performance: 21.54%

Number of hedge fund holdings: 34

Established in 1942, Ferrari N.V. (NYSE:RACE) designs, engineering, produces and sells luxury performance sports cars globally. During the last 52 weeks, the stock price of Ferrari N.V. (NYSE:RACE) has increased by 48.02%. Analysts strongly recommend a buy rating for the stock due to its pricing and earnings power over time. The company delivered a YOY growth rate of 17.17% in 2023 and the estimated growth rate for the current year is 12.50%.

Ensemble Capital Management stated the following regarding Ferrari N.V. (NYSE:RACE) in its first quarter 2024 investor letter:

“Ferrari N.V. (NYSE:RACE): With the company’s utility vehicle, the Purosangue, sold out despite being priced much more aggressively than many investors expected, investor attention has been turning to the company’s long term ability to raise prices. With the business’s earnings power being regularly revised higher by investors who watched the company navigate COVID and inflation easily, the stock has been on a tear.

Ferrari has had a very successful run since we first bought shares in the company in 2017. It has been one of our most successful investments since, with shares rising over five times, and understandably so given how phenomenal this business is and how well it has been managed.

Initially spun out of Fiat (now Stellantis) in 2015, it was a rare jewel within the parent company, where its value was hidden among more standard and premium cars sold under brands such as Fiat, Alpha Romeo, Maserati, Chrysler, Jeep, and others. Under the leadership of the astute business manager Sergio Marchionne, who had run Fiat since 2004, Ferrari came to be recognized as the undervalued and unique asset that it was within its parent…” (Click here to read the full text)