Ferrari a Safe Haven from Fed Rate Hikes
The Federal Reserve's recent interest rate hike has investors wondering about its impact on their portfolios. However, certain businesses are better positioned to thrive regardless of monetary policy.
Ferrari is one such company that has been a perennial winner historically. Shares have climbed 758% in the past decade, turning $10,000 into $86,000 today.
The brand is paramount to Ferrari's success, with its supercars produced and sold in limited quantities, leaving the market wanting more. This supports pricing power, as businesses that can raise prices without impacting customer demand are less affected by interest rates.
Ferrari's profits are also impressive, with an average quarterly operating margin of 27.5% over the past five years. The consensus view among sell-side analysts is that revenue will grow at a compound annual rate of 7.3% between 2025 and 2028.