1 Growth Stock Down 21% to Buy Right Now

By Todd Shriber – Updated Mar 9, 2026 at 1:45PM ESTKey PointsFerrari stock has a flat tire, but it’s still one of the more attractive automotive growth stories.Key to the luxury carmaker's success is the strict limit it places on vehicle production.A recent earnings beat suggests there’s still plenty of gas left in the tank. Barring economic calamities comparable to the Great Depression or the global financial crisis, high-net-worth individuals don't dramatically alter their spending habits as the rest of us do. Garden-variety recessions, while painful for the middle class, typically don't dent affluent folks' desire for high-end items, travel, and the like. Given that the wealthy are, well, wealthy and that the U.S. economy is growing, statistically speaking, Ferrari (RACE 2.23%) should be a prime example of a consumer cyclical winner. Yet shares of the Italian sports car manufacturer are off 21% over the past year. That sounds even worse, given that a bear market is defined as a decline of 20% from a stock's most recent high. The check engine light is on for this automotive stock, but that may be an opportunity. Image source: Getty Images. Bear markets are unsettling, but those conditions can also nurture opportunity. Perhaps Ferrari management concurs, as the company has repurchased over $117 million of its shares since the start of this year. That's one sign that the opportunity may be knocking with this stock, and there are more to evaluate. Ferrari stock can accelerate While this is widely discussed with Ferrari, investors shouldn't discount the aura of exclusivity and the country club vibe, which are integral to the investment thesis. Average selling prices on new Ferraris range from $250,000 to $700,000-plus. In many parts of the U.S., those are home values. That's by design. Ferrari isn't Ford Motor Company or Tesla. It's not attempting to sell large numbers of automobiles. In fact, in its roughly 11 years as a publicly traded company, Ferrari's unit sales per model year have been relatively steady at around 1,000. From another perspective, the company is engaging in population containment. More Ferraris on the road diminishes the air of exclusivity, potentially damaging the fundamental case for the stock. Is it arguably tacky that buyers can access select Ferrari models only through invitation? Perhaps, but between that and the company's pricing power and its quality-over-quantity business model, it's clear that management is defending Ferrari's brand value. That's something for long-term investors considering this stock to chew on. ExpandNYSE: RACEFerrariToday's Change(-2.23%) $-7.82Current Price$342.26Key Data PointsMarket Cap$62BDay's Range$337.00 - $343.8852wk Range$328.00 - $519.10Volume22KAvg Vol750KGross Margin51.93%Dividend Yield0.97% Ferrari does have some commonalities with "ordinary" automakers. Namely, it has to keep its product lineup fresh. While its supercar cycle is a new model every three or four years, it also introduces more "attainable" models annually, which could be near-term catalysts for the stock. Emphasis on "near-term" because the convertible Amalfi Spider is expected to launch this month, and Luce, the manufacturer's first fully electric vehicle, could come to market this year. Ferrari has a fortress Investors who know history know there have been periods when legacy automakers, including the domestic giants, have tested shareholders' (and taxpayers') patience. Much of that negativity was attributable to flimsy financials. That's not a cause for concern with Ferrari. The company has one of the strongest balance sheets in the industry, and it has proven adept at generating cash flow. Ferrari also puts that cash to good use. It pays a dividend, and the 35% payout ratio implies the company isn't stretched thin by the payout. Something else investors can take to the bank is the automaker's commitment to trimming its share count each year. Read NextOct 10, 2025 •By Chris NeigerWhy Ferrari Stock Hit the Brakes This WeekMay 8, 2023 •By Jason Hawthorne3 Stocks That Show the Market Isn't Counting on a RecessionApr 18, 2023 •By Leo SunWhy Ferrari, Hermès, and Coca-Cola Are No-Brainer Buys Right NowAug 29, 2019 •By Daniel Miller3 Stocks to Own If You're Worried About a RecessionJan 31, 2019 •By Motley Fool TranscribersFerrari N.V. (RACE) Q4 2018 Earnings Conference Call TranscriptNov 8, 2017 •By Dan CaplingerThese 3 Stocks Have Doubled in 2017Stocks MentionedFerrariNYSE: RACE$342.38(-2.20%)-$7.71Ford Motor CompanyNYSE: F$11.97(-1.48%)-$0.18TeslaNASDAQ: TSLA$392.45(-1.08%)-$4.28*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.