3 Things You Must Know About Ferrari Before You Buy the Stock

(NYSE: RACE) just reported financial results for the first quarter. They were positive as revenue and adjusted diluted earnings per share rose 11% and 20%, respectively, compared to the year-ago period. But some investors might have been disappointed by the fact that management maintained its full-year outlook.

This unstoppable automotive stock has soared 188% just in the past five years, while the S 500 is up 82% during that time. However, the shares fell 6% following the latest announcement. Should you buy the dip on Ferrari? Don't make a decision until you know these three things first.

Of course, investors understand that Ferrari sells vehicles. It procures raw materials, hires a team of designers and engineers, and has a factory where its products are built. Then it sells these cars all over the world. Sounds boring, right?

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Source Fool.com