1 of the Best Industrial Stocks to Own for the Next 10 Years

It seems like all the attention in recent years has gone to the artificial intelligence trade. This is understandable. The poster child of this boom, Nvidia, is trying to close in on a mind-boggling $6 trillion market cap.

Investors should learn to expand their horizons, though. Even in areas of the market that might appear boring, such as the industrial sector, there can be worthwhile opportunities, like this special company. Continue reading to learn about the best industrial stock to own for the next 10 years.

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These favorable traits highlight a high-quality business

The business investors should focus their attention on is Ferrari (NYSE: RACE), the Italian carmaker that stands out in the industry. There are notable factors indicating that this is an outstanding company.

Ferrari's success ultimately depends on its brand, which is recognized as a luxury one in the industry. The business intentionally limits the volume of cars that it makes and sells, supporting incredible demand.

This strategy leads to pricing power, with Ferrari cars costing as much as houses do. Some models even fetch seven-figure price tags. Consequently, the business generates impressive profits. Its operating margin came in at 29.7% in the latest quarter.

Perhaps an overlooked characteristic is that this company would likely fare well in an adverse economic scenario, something that can't be said about the mass market auto sector. Because Ferrari caters to an ultra-wealthy population -- a group that can probably still buy expensive cars in recessionary periods -- its financials don't experience much volatility.

Now is a great time to buy this market-beating stock

On May 5, Ferrari reported financial results for its first quarter, which ended on March 31. The company beat Wall Street analyst estimates on the top and bottom lines, and management reiterated full-year guidance. That's the good news.

But this didn't help boost the share price, which has been experiencing a notable decline for almost a year. Ferrari's stock trades 36% below its all-time record from July 2025. With the recent news, the market might not have been pleased with the company's year-over-year decline in vehicle shipments.

Investors could also be nervous about the upcoming launch of Ferrari's first fully electric car, called Luce. It's set to be revealed this month. A lot of attention will be paid to how customers perceive the new vehicle, as anything less than robust demand will be viewed as a failure.

However, the shares still possess a stellar long-term track record. In the past decade, Ferrari's stock is up 694%, crushing the 328% total return of the S&P 500 index.

Shares can now be purchased at a price-to-earnings ratio of 32. This is a compelling valuation that's 21% below the automotive stock's historical average. Ferrari looks like a smart buy-and-hold opportunity for investors with a 10-year time horizon.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari and Nvidia. The Motley Fool has a disclosure policy.