When searching for stocks to buy, I prefer companies backed by strong global trends. In theory, this should give top-notch firms plenty of room to grow for years to come.
One clear trend is that the global super-rich are getting richer. According to wealth intelligence firm Altrata, the number of billionaires hit a record 3,795 last year — the largest jump since 2020 — as the AI boom turbocharged wealth globally.
Here’s a high-quality luxury stock set to continue benefitting from this trend.
Luxury legend
Its name? None other than Italian luxury carmaker Ferrari (NYSE:RACE).
The Prancing Horse continues to experience healthy demand across all geographies, with its order book covering all of 2027. In other words, anyone walking into a dealership to buy a brand new Ferrari is looking at a delivery date in 2028 (at the earliest).
This is a textbook masterclass in manufactured scarcity. By keeping annual volume strictly capped at around 14,000 units, Ferrari ensures that demand and long-term resale value remain very high.
In Q2, net revenue grew 11% at constant currency to €1.94bn. Operating profit increased 16% at constant currency to €605m, translating into an industry-leading margin of 31.2%.
Personalisations continue to impress, and now account for over 20% of total revenues from the core vehicle division. These options (carbon fibre packages, bespoke paint, custom interiors, etc) carry high margins.
Meanwhile, shipments of the F80 are increasing, though production of this ravishing €3.6m+ hypercar is capped at 799 units. Still, you can do the maths to see that making 799 F80s at that price is well worth the effort.
Ferrari could easily make and sell more — the limited-edition car was originally three times oversubscribed — but strategically chooses not to.
Our North Star has been, it is, and will always be, scarcity and exclusivity.
CEO Benedetto Vigna.
EV backlash
In May, Ferrari released its first EV, the five-seater Luce. The design polarised opinion among Prancing Horse aficionados.
Personally, I was quite shocked. To me, the blue Luce looks like a cross between EVE — the robot from Pixar’s WALL-E — and a high-end Dyson air purifier. But one that starts at €550k — before personalisation!
However, proving the doubters wrong, Ferrari says initial Luce orders are coming from both repeat and new customers, with strong interest in China.
And crucially, the EV is an addition to the line-up. It was never designed to look like a traditional Ferrari and is marketed at non-petrolheads.
Besides, my opinion doesn’t really matter, as I’m not a client. Time will tell whether Ferrari EVs sell well or not.
Cheaper than before
As mentioned, Ferrari boasts margins other car firms could only dream about. So the market treats it as a luxury goods firm rather than a cyclical carmaker.
As such, the stock trades at a premium forward price-to-earnings (P/E) multiple of 33. While that may seem high, and adds risk if growth disappoints, it’s a discount from the 50 forward P/E multiple of a couple of years ago (when it was overvalued).
In October 2025, Ferrari guided for 6% annual earnings growth to 2030. I suspected this was conservative. Now, EPS is already tracking 8% higher for 2026, boosted by share buybacks.
While the stock isn’t cheap, I see Ferrari as a quality compounder, and a great way to consider playing the rich-getting-richer theme.
Should you invest £5,000 in Ferrari right now?
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Ben McPoland owns shares in Ferrari.
