Down 29% In 6 Months, Is Ferrari Stock A Buy?

By Daniel Sparks – Mar 18, 2026 at 3:31PM EST

Key Points

Ferrari’s top line grew 8% on a constant-currency basis in 2025.
The company’s recent five-year financial targets imply a sluggish 5% annualized revenue growth rate.
With a multi-year order book and a massive repurchase program, the stock remains an attractive, durable investment.

The Ferrari logo with the Ferrari F80 in the background.

Image source: The Motley Fool.

A conservative roadmap

To understand the stock’s recent weakness, look no further than the company’s 2030 financial targets.

At its Capital Markets Day last October, management expects net revenue to reach approximately 9.0 billion euros by the end of the decade. Compare that to the 7.15 billion euros in revenue the company generated in 2025, and this implies a compound annual growth rate of just 5% over the next five years.

That is a noticeable step down from the double-digit growth rates investors have grown accustomed to in recent years.

But there is a good reason for this cautious approach. Ferrari’s entire business model relies on scarcity. By intentionally capping volume to protect its pricing power, the company ensures its brand equity remains pristine.

And the fruits of this discipline are clearly reflected in the company’s profitability. In 2025, Ferrari’s operating margin — or its operating profit as a percentage of total revenue — expanded by 120 basis points year over year to a staggering 29.5%.

For Ferrari, margin expansion this means earnings per is growing faster than revenue — a trend I think should persist for the company over the long haul.

Even more, Ferrari produced over 1.5 billion euros in industrial free cash flow last year. Compare that to the roughly 1.0 billion euros it generated in the prior year, and that represents a massive 50% year-over-year increase.

The F80 catalyst

While the five-year headline growth rate may seem uninspiring, the near-term product pipeline is packed with high-margin catalysts.

The most important of these is the newly launched F80 supercar. Deliveries of the highly anticipated hybrid flagship commenced late last year and should ramp up throughout 2026. As these ultra-expensive, multi-million-dollar vehicles roll out of Maranello and onto the income statement throughout the year, they should provide a robust tailwind to both revenue and earnings.

Capturing the unique predictability of Ferrari’s business model, the company has pre-sold all of its F80 units.

In fact, the company’s overall order book for its cars “extends toward the end of 2027,” said Ferrari CEO Benedetto Vigna during the company’s fourth-quarter earnings call.

Ferrari Stock Quote

NYSE: RACE

Ferrari

Today’s Change

(-1.61%) $-5.41

Current Price

$331.07

Key Data Points

Market Cap

$60B

Day’s Range

$330.99 – $336.06

52wk Range

$328.00 – $519.10

Volume

20K

Avg Vol

723K

Gross Margin

51.93%

Dividend Yield

1.01%

Time to buy?

Even after the recent haircut, Ferrari stock is not cheap. As of this writing, s trade at about 33 times earnings.

At this valuation, the market is still pricing in near-flawless execution.

Additionally, because of this rich premium and management’s modest 5% annualized growth target, investors probably shouldn’t expect the stock to deliver market-crushing returns from here.

Of course, that doesn’t mean the stock isn’t worth buying. Ferrari offers a unique combination of extreme brand loyalty, a multi-year order book, and a customer base that is highly resilient to recessions.

Further, the company is actively boosting its total holder yield. Earlier this year, the company said it would increase its dividend by 21%. In addition, Ferrari is executing a meaningful 3.5 billion euro repurchase program that will run through 2030. By reducing the overall count, this buyback should help drive earnings per higher even if top-line growth is modest.

Returns may not be exceptional over the next five years. But I believe Ferrari offers investors a decent way to diversify a portfolio beyond traditional technology stocks.

For investors looking to secure a potentially solid long-term return and a growing stream of dividend income, I think this dip is a great place to start building a position.