5 Best Automotive Stocks To Invest In Now

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In this article, we discuss the 5 best automotive stocks to invest in now. If you want to read our detailed analysis of the automotive industry which highlights current trends and major players, you can go to 10 Best Automotive Stocks To Invest In Now.

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

Number of Hedge Fund Holders: 34

Only a handful of automobile companies have managed to navigate through major headwinds that the automotive sector has been facing lately, and Ferrari N.V. (NYSE:RACE) is one of them. This May the company released its earnings report which presented the company’s earnings for the fiscal first quarter of 2022. Ferrari N.V. (NYSE:RACE) reported earnings per share of $1.37 and beat EPS estimates by $0.12. Moreover, the company’s revenues grew 3.56% year over year and totaled $1.26 billion, beating market estimates by $6.99 million.

This April, UBS analyst Susy Tibaldi raised her price target on Ferrari N.V. (NYSE:RACE) to $263 from $260 and maintained a Buy rating on the share. Tibaldi contended that Ferrari N.V. (NYSE:RACE) is one of the best-positioned companies to remain resilient and actually remain profitable during inflationary periods given the company’s strong demand and pricing power.

Robust earnings, strong demand, and bullish analyst and investor sentiment make Ferrari N.V. (NYSE:RACE) an attractive automotive stock option to invest in now.

At the end of the fourth quarter of 2021, 34 hedge funds held long positions in Ferrari N.V. (NYSE:RACE) with stakes worth $1.42 billion in the company. This is compared to 27 positions in the previous quarter with stakes of $1.17 billion. The hedge fund sentiment for the stock is positive.

As of March 31, 2022, Ako Capital is the most prominent shareholder in Ferrari N.V. (NYSE:RACE) owning more than 0.95 million shares of stock, which equate to a stake value of $209.10 million.

Here is what Ensemble Capital had to say about Ferrari N.V. (NYSE:RACE) in its first-quarter 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.”