Ferrari and Penske Are Considered Two of the Top Auto Stocks for 2019

02:09 12/27/2018

Italian luxury auto maker Ferrari is one automobile stock to keep your eyes on according to Consumer Edge Research’s Jamie Albertine, citing that the manufacturer plans to significantly expand its production over the next seven years. According to Albertine, it may also be a good idea to buy shares of Penske next year as the company focuses more on used vehicles as consumers opt for older models. Speaking on CNBC this week, Albertine said that brands like Ferrari and Penske could be some of the top auto stocks to buy next year. He said that Penske Automotive Group has begun moving into the used car retail business and is looking to attract customers seeking value on the used car market, allowing Penske to compete with platforms like Carmax and Carvana, It was in November when the analyst had said that higher used-car sales could extend into 2019 “in a major way.” “Penske’s getting into standalone used sales [with] a lot more force,” he explained on CNBC’s “Closing Bell." Albertine has seen a “pivot” among consumers “from new- to late-model used vehicles as the off-lease supply comes back to market.” As for Ferrari, Albertine noted that the car maker has increased production from the 9,000 units it makes annually to north of 14,000 a year. He also said that the company is planning to boost car production by as much as 55 percent over the next seven years. “From a brand perspective, [Ferrari has] one of the most protected customer-loyal brands in the history of luxury, broadly,” said Albertine. “So, again, focus on quality there, but also some key EBIT margin expansion [and] production expansion, over the ... near to medium term," he added. The analyst also considers General Motors a stock to watch.0

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