Ferrari will report earnings on Monday before the open as the stock has completely rebounded from the selloff due to the Coronavirus shutdowns and made a new all time high last week.The company has fared well in this tough environment due to its supply of cash and the fact that it builds less cars than other manufacturers. The limited supply and high demand in a luxury market allows them to fair better than the average automaker as many of it's customers are still able to purchase vehicles despite the hard economic times.
The company had a short shutdown in May due to the coronavirus. Ferrari will receive less sposorship revenue due to less formula one races this year. Other parts of it's business should be able to offset this loss in revenue in the next few quarters according to company reports.
Ferrari's market cap surpassed the largest US auto manufacturers earlier this year even though the company produces less than 10 thousand cars per year. The companies stock price trades at a premium compared to it's peers, but it benefits in that it's sales are not tied to the mass market of it's competitors.
After breaking to a new all time high last week the stock has consolidated back down to the 20 day moving average. The previous higher low support level on the daily chart is at $174.22. The last weekly higher low level of support is at $164.23.
