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the stock shed roughly 17% of its value over the past month. The driving force behind the spiral lower wasn't current issues -- the company just posted a strong third quarter and raised 2025 guidance–– but rather the fact that the company set lower-than-expected growth through 2030. It's a classic overreaction by the market, and while the decline only brings Ferrari's price-to-earnings ratio down to a lofty 38 times, it's still a rare buying opportunity. Let's briefly cover Ferrari's strong third quarter and why it's still a strong buy.Ferrari only needed 3,401 total shipments during the third quarter to generate strong results. Net revenue jumped 7.4% to 1.77 billion euros during the third quarter, compared to the prior year, driving a 7.6% gain in operating profit (EBIT) of €503 million; margins remained a strong 28.4%. Investors would be wise not to take those margins for granted, as they are incredibly rare in the automotive industry. Ferrari's pricing power is elite.RACE Operating Margin (TTM) data by YCharts"We continue to advance with conviction and strong visibility on our development path. At our Capital Markets Day, we have defined a clear trajectory in the long-term interests of our brand, setting the floor for sustainable growth toward 2030," said Benedetto Vigna, the CEO of Ferrari, in a press release.Part of Ferrari's success during the third quarter was driven by its lucrative product mix that reflected strong deliveries of the SF90 XX and the 12Cilindri families, as well as an uptick in expensive options on personalization, which helped offset U.S. import tariffs that added to the cost of Ferrari's imports to its most valuable U.S. market.Aside from the core numbers and metrics, there were a few things of interest to investors. First, Ferrari isn't known for returning value to shareholders through its modest dividend, but it might not get enough credit for buying back shares.RACE data by YChartsFerrari is currently in the process of completing its multiyear share buyback program of roughly €2 billion announced in 2022. While investors and companies may sell for a number of reasons, this is a strong signal that Ferrari has confidence in its business and sees long-term upside in its shares.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,734.11 -3.38 (-0.05%)Dow 3047,147.48 -309.72 (-0.65%)Nasdaq22,900.59 +30.19 (+0.13%)Russell 20002,388.23 +5.25 (+0.22%)VIX19.83 -0.17 (-0.85%)Gold4,094.20 -100.30 (-2.39%)PortfolioSign in to access your portfolioSign inTop gainersCDTX Cidara Therapeutics, Inc. 217.71 +111.72 (+105.41%)SRRK Scholar Rock Holding Corporation 37.41 +7.34 (+24.41%)AVDL Avadel Pharmaceuticals plc 23.56 +4.32 (+22.45%)LGN Legence Corp. 40.27 +6.95 (+20.86%)CSIQ Canadian Solar Inc. 33.58 +4.96 (+17.33%)Top losersDGNX Diginex Limited 10.53 -2.97 (-22.00%)STUB StubHub Holdings, Inc. 14.87 -3.95 (-20.99%)HTFL Heartflow, Inc. 27.98 -2.96 (-9.57%)EOSE Eos Energy Enterprises, Inc. 13.80 -1.40 (-9.24%)CLSK CleanSpark, Inc. 10.96 -1.02 (-8.51%)Most activeNVDA NVIDIA Corporation 190.17 +3.31 (+1.77%)ONDS Ondas Holdings Inc. 7.18 +0.62 (+9.45%)OPEN Opendoor Technologies Inc. 8.12 -0.44 (-5.14%)TSLA Tesla, Inc. 404.35 +2.36 (+0.59%)PFE Pfizer Inc. 25.06 -0.73 (-2.83%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 96,394.56 +533.39 (+0.56%)ETH-USD Ethereum USD 3,232.20 +73.59 (+2.33%)XRP-USD XRP USD 2.27 +0.02 (+0.85%)SOL-USD Solana USD 142.97 +1.99 (+1.41%)BTC-EUR Bitcoin EUR 82,934.31 +458.91 (+0.56%)Top economic events