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03 August 2021
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Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares?

The Motley Fool UK

03/06/2021 - 14:20

Both Rolls-Royce and International Consolidated Airlines Group shares have suffered in the pandemic. But as travel restarts, which stock looks better? The post Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? appeared first on The Motley Fool UK.


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  1. Is the Rolls-Royce share price cheap at 100p? (07/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE:RR) share price has struggled to make headway over the past couple of months. We did see an impressive rally late last year from 40p to around 135p. Recently, the share price has since fallen back to trade in a range between 100p and 110p. Given that shares were trading above 200p at the start of last year, does the current price make it a cheap buy? A tight trading range I think there are a few reasons why the Rolls-Royce share price is currently trading in a tight range around 100p. Firstly, I think a lot of investors are waiting on the sidelines for half-year results. These are due out on 5 August. This should provide a more detailed picture of how the business has coped in the period when lockdown restrictions were starting to end. In theory, this should support the share price if the planned outlook financials are raised. However, nothing is certain at the moment, and so some are likely keeping their powder dry until August. Another reason for the lack of movement recently could be due to the policy regarding Covid-19 restrictions. The anticipated freedom day in June has been pushed back to later in July. The international travel traffic light system hasn’t been the most efficient process. This has meant that the amount of flights and commercial aviation has been limited. Due to the ties Rolls-Royce has to this sector, I’m not surprised that the share price hasn’t been able to find a positive catalyst to move higher. Is the current Rolls-Royce share price fair? It’s hard to confidently say that the Rolls-Royce share price is cheap at current levels around 100p. This is because what is cheap to me might not be to someone else.  A traditional method would be to look at the price-to-earnings ratio. Usually, a low ratio could indicate that a stock is undervalued and cheap. However, Rolls-Royce made a loss last year, so the ratio is negative.  It’s also hard to rank Rolls-Royce against other companies as it depends on what sector I put it in. If I compare it to BAE Systems with a P/E ratio of 11.3, then I would say the share price looks cheap. What about if I compare it to an aviation company like International Consolidated Airlines Group? IAG has an even more negative P/E ratio than Rolls-Royce. So I could argue that IAG offers better value than the current Rolls-Royce share price. I could also look internally at Rolls-Royce. If the half-year results show a reduction in debt and good cash savings, this should help to boost the net asset value. In turn, this naturally should help to push the Rolls-Royce share price higher, as the fundamental value of the business has increased.  2021 net debt (pre-disposals) is expected at £4bn, but potentially getting back £2bn with disposal proceeds. Again, I’m going to have to wait until next month for an update on how well this is going. Overall, I think the Rolls-Royce share price is fairly priced around 100p right now. However, results next month will allow me to get a much better picture in this regard, depending on earnings and debt levels. The post Is the Rolls-Royce share price cheap at 100p? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading This is what I’m doing about the Rolls-Royce share price Should I buy Rolls-Royce shares today? Where will the Rolls-Royce share price go in July and beyond? Rolls-Royce shares are below 100p. Should I buy? The Rolls-Royce share price: 3 things that could give it a boost jonathansmith1 has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  2. Why is the Rolls-Royce share price having such an uncertain June? (21/06/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) is one of the few FTSE 100 stocks that, as my Motley Fool colleague Rupert Hargreaves pointed out, has essentially gone nowhere over the past 12 months. It’s pretty much flat since the start of 2021 too. But looking a little closer, we can see the the Rolls-Royce share price has actually been through a lot of short-term ups and downs. Looking at June alone, Rolls shares have lurched between a high of 113.5p and a low of 104p. That’s a swing of 9% from lowest to highest, and way more volatile than the Footsie. Similarly sized ups and downs have been going on for months. It’s as if investors keep wanting to get in, keep thinking maybe the time is ripe for the recovery to start… and then it doesn’t take off and fades again, until the next time. I know it’s dangerous to read too much into short-term share price volatility. And I would never make an investing decision based on what the Rolls-Royce share price has done over the past few months or so. But if my speculations on investor sentiment are anywhere near the truth, they’re really just reflecting my own thoughts. I like the company The thing is, I’ve liked Rolls-Royce for a long time. And it’s one company that I’d really like to buy a chunk of at a cheap price. The company had hit a tough patch even before the pandemic brought a near halt to aviation. I reckon that presented a good buy at the time for investors with a long-term horizon. But it’s history now. I really do think the Rolls-Royce share price will recover from its current hammering. The only thing I just can’t get my head round is how long it might take for a sustainable profits recovery to set in. Oh, two things — and whether Rolls has the liquidity needed to see it through to such times. If it hasn’t, we might see further falls. In the past month, I can’t help feeling the delayed lifting of the UK’s final Covid-19 restrictions has made investors a bit twitchy again. Right now, Boris Johnson has said it’s “looking good” for the new target date of 19 July to be met. But, well, he’s said a lot of things over the years. Rolls-Royce share price uprating? So what are my thoughts now about the next stage for Rolls as an investment? To turn my own sentiment sufficiently bullish, I think I’ll need to see a positive set of results. In particular, I want to see how the balance sheet and cashflow situation are looking. Once we see clearer developments on those fronts, if we see them, I can see the Rolls-Royce share price enjoying an uprating. When might that come? First-half results should be with us on 5 August, and that’s really not very long now. By then, we should have firmer news on the pandemic front. And, hopefully, a bit of confidence returning to the aviation business. I’ll be waiting at least that long before I finally decide, and possibly a good bit longer. I think there’s probably a 50/50 chance that I’ll end up buying Rolls-Royce shares one day. The post Why is the Rolls-Royce share price having such an uncertain June? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading What’s going on with the Rolls-Royce share price? Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  3. What’s going on with the Rolls-Royce share price? (19/06/2021 - The Motley Fool UK)
    Over the past 12 months, the Rolls-Royce (LSE: RR) share price has essentially moved sideways. The stock has returned -1.5% since this time last year. By comparison, the FTSE All-Share Index has returned 22%. This is a bit of an unfair comparison because the pandemic has severely impacted Rolls-Royce. It suffered one of the most substantial drops in revenue and profitability of any large UK company.  It makes more sense to compare the performance of the Rolls-Royce share price to that of other pandemic-hit businesses such as IAG, easyJet and Tui. But even compared to these stocks, Rolls has underperformed. The three firms outlined above have returned 11%, 24%, and 47%, respectively, over the past 12 months. Tui has achieved this performance even though it’s been bailed out three times by the German government during this period.   Looking at these figures, I’ve been wondering, what’s going on with the Rolls-Royce share price?  Improving outlook  Rolls’ largest division is its aerospace business. This involves the sale and maintenance of engines for the civil aviation industry. The company gets paid based on the number of flying hours its machines rack up. Therefore, when the aviation industry was effectively grounded this time last year, group revenues plunged.  Since then, the industry has started to recover. Air traffic around the world is currently around two-thirds of 2019 levels. As the outlook for the sector has improved, it’s had a positive impact on Rolls’ outlook. The company expects to be cash flow break-even in the second half of the year. This should draw a line under its pandemic losses.  Unfortunately, it seems as if the market is sceptical the company can hit this target. That appears to be the primary reason why the Rolls-Royce share price has underperformed.  It wouldn’t be the first time the company has missed targets. In the past, the group has repeatedly overpromised and underperformed. Therefore, I think the market doesn’t believe in management’s outlook.  Is the Rolls-Royce share price a buy?  I reckon this could be an opportunity for risk-tolerant investors. Despite its improving outlook, the stock still looks cheap. Although there’s always going to be the risk that the company will miss management’s growth targets.  With that being the case, I’d buy the stock for my portfolio today as a speculative recovery play. However, I’m well aware this isn’t a risk-free investment. I think there’s a very high chance the company will underperform this year. If it does, the stock could continue to languish.  That’s why I’d only buy a small speculative position for my portfolio. While I think the Rolls-Royce share price has recovery potential, the global travel and aviation industry outlook is incredibly uncertain. Unfortunately, there’s nothing the company can do about this uncertainty.  The post What’s going on with the Rolls-Royce share price? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? What’s happening to the Rolls-Royce share price? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  4. Rolls-Royce earnings: here’s what will help me decide to buy more shares (10/03/2021 - The Motley Fool UK)
    FTSE 100 stock Rolls-Royce (LSE:RR) will release its earnings report on Thursday 11th March at 9am. It is well expected that the company will report its biggest annual loss in history and go into depth about the detrimental impact the Covid-19 pandemic has had on the business. Nonetheless, I think there might be light at the end of the tunnel for Rolls-Royce shares. Here are the main reasons why I am re-entering Rolls-Royce albeit tentatively, as I think there is a chance that we see a positive rise of the share price after earnings. Rolls-Royce is expected to report its biggest loss ever The market is already expecting the company to have its biggest ever loss on record so that isn’t likely to spook the share price if it is indeed reported. In fact, International Airlines Group recently reported a loss of £7.5 billion and its share price rose 3.5%; I am hoping that we might see something like that for Rolls-Royce’s shares. Reasons the stock could rise I am hoping that the management comes out speaking upbeat on its recovery, especially in terms of its aerospace division. This division manufactures and services engines for the airline industry and makes up 50% of the company’s total earnings. Therefore, with the vaccination roll-out going better than expected in the UK and improving globally, this is positive for Rolls-Royce’s main revenue stream especially as more airlines are now travelling than they did in the fourth quarter. Additionally, I hope we hear more from management about this and that they provide upbeat guidance for the rest of the year, especially with foreign holidays from the UK set to be allowed from 17th May. Reasons Rolls-Royce shares could fall A key metric to focus on will be its liquidity position (cash). During the pandemic, the management team reacted quickly and raised money from a rights issue. They also took measures to cut-costs to make the business leaner, which I think has only made the company a more attractive proposition if it can survive this pandemic. However, if we were to hear that Rolls-Royce may need to do another round of financing, or if it raises concerns about its cash position being able to survive a longer-than-expected recovery, this could send the share price falling. Why I am buying Nevertheless, although the shares have recovered somewhat, they are still significantly down from Rolls-Royce’s pre-pandemic levels of over 600p. That’s why I think now, before its FY earnings, is a great chance to get into this stock. Therefore, I am buying more shares in this global brand in the hope of a boost after earnings, but I will be holding a little bit of money back in case a ‘buy the dip’ opportunity presents itself instead. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Rolls-Royce share price is rising. Should I buy shares now? Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today Joseph Clark holds shares in Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce earnings: here’s what will help me decide to buy more shares appeared first on The Motley Fool UK.
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  5. Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do (30/03/2021 - The Motley Fool UK)
    Rolls-Royce Holdings (LSE: RR) shares were the most popular choice with investors on share trading platform Hargreaves Lansdown last week. British Airways owner International Consolidated Airlines Group (LSE: IAG) wasn’t far behind, in second place by value. Both companies are ‘reopening stocks’, which depend heavily on air travel getting back to normal over the next year. I’ve been wondering whether I should buy one of them for my portfolio, or whether it’s too late to get on board this trade. What happens next? The IAG and Roll-Royce share prices have both risen by more than 100% from the lows seen in early October. Vaccine news in November put a rocket under these stocks, as it did with many others. Despite these gains, both Rolls-Royce and IAG are still trading at share prices 50% lower than in January 2020. At first glance, this might seem cheap. But I don’t think it is. The reason for this is that both companies have taken on extra debt and issued large numbers of new shares over the last year. They’ve been focused on survival. But as a potential investor, I’m focused on dilution. What this means is that from 2021 onwards, Rolls’ and IAG’s profits will be split among many more shares than in the past. This means that earnings per share will be much lower, even if profits return to pre-pandemic levels. The extra debt these companies have taken on also worries me. Debt payments always come ahead of shareholder dividends. These payments will now be bigger than they were before the pandemic. I think it could be a while before IAG and Rolls-Royce can start to pay attractive dividends again. Rolls-Royce shares vs IAG: what I’d buy The other concern I have as a potential buyer is whether these are really good businesses. Airlines have a long history of boom and bust. But before the pandemic, many investors — even Warren Buffett — were starting to think things might be different now. It turns out they aren’t. Airlines still have high fixed costs that are difficult to manage when demand is disrupted. And they still face very tough competition from multiple rivals. Mr Buffett ditched his airline stocks early last year when the likely impact of the pandemic became clear. In my view, Rolls-Royce is a better business than IAG. This is because Rolls-Royce offers essential products with few competitors and a large base of existing customers. These customers are tied into Rolls on long-term maintenance contracts. When flying restarts, airlines will have to start spending money with Rolls-Royce again. To sum up, I don’t think Rolls-Royce shares or IAG shares look particularly cheap today. But if I did invest, I’d certainly choose Rolls. I think the engine maker is much more likely to deliver attractive long-term returns for shareholders. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Rolls-Royce share price: amazing value for my ISA? 2 aerospace stocks I’d buy Rolls-Royce shares: Norway blocks its sale. Should I be worried? Should I buy Rolls-Royce shares for my portfolio today? Will the Rolls-Royce share price reach 150p this year? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do appeared first on The Motley Fool UK.
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  6. Will the Rolls-Royce share price ever get back to 200p? (08/06/2021 - The Motley Fool UK)
    If I look at a list of the most volatile stocks of 2020, Rolls-Royce (LSE:RR) would definitely be on it. From trading at highs just below 700p in February, it traded well below 100p in October. Yet so far in 2021, it has been a completely different story for the Rolls-Royce share price. It has been anchored around the 100p level for several months now. With a lack of any meaningful move higher, will the shares ever break back towards 200p? Last year versus now It’s important to differentiate between this year and last year when analysing the Rolls-Royce share price. The crash and volatility seen in 2020 was because of investors processing a lot of news about the company. It quickly became apparent that with global lockdowns, commercial aviation was going to take a hit. People simply would be unable to travel abroad, meaning passenger flying miles would decrease. This meant less maintenance and new engines were required from Rolls-Royce.  Even though other areas of the business (such as defence) didn’t suffer as badly, the size of the aviation arm of the company meant that the Rolls-Royce share price fell considerably by the end of Q1. The volatility for the rest of the year mirrored the state of the pandemic. Past performance doesn’t perfectly predict future returns, but it does give me some clues. Given that the volatility last year was due to concern by investors, the calm of the past few months tells me that investors are now more neutral. A catalyst for the Rolls-Royce share price? Neutral isn’t really what I’d want though if I held shares in Rolls-Royce right now. I’d be wanting to see it moving higher and trying to head back to 200p or above. The low price today could be a buying opportunity for me, of course. But right now, I don’t have enough information on where the price might go next to warrant me buying the shares, despite that low price.  From one angle, the next move could be higher given the fact that the Rolls-Royce share price has consolidated at current levels for a sustained period. This is a change from the falling price seen for much of 2020. The fact that the price has stopped falling, and is steady, does offer some positivity. From my point of view, to break higher I’d need to see a catalyst. For example, if summer overseas travel restrictions were lifted in the UK, I’d expect the share price to jump. Ultimately, any sign that airline operators will be increasing flights should be positive for Rolls-Royce. Aside from external news like the above, the internal health of the company could drive the Rolls-Royce share price higher. The half-year 2021 results are due out in the first week of August. If cost-cutting measures are on track to save the £1.3bn+ in annual cost savings targeted by the end of 2022, this would be a lift for the shares. More clarity on the restructure (lower capital spend in commercial aviation and more into power systems and defence) could also help. I think the current range around 100p could continue until we get more news out about summer travel plans and half-year results. If both sets of news are positive, then I think momentum could carry the shares to 200p by year end. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? What’s happening to the Rolls-Royce share price? Could the Rolls-Royce share price fall below 100p? This is what I’m doing about the Rolls-Royce share price! jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Rolls-Royce share price ever get back to 200p? appeared first on The Motley Fool UK.
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  7. The Rolls-Royce share price: 3 things that could give it a boost (29/06/2021 - The Motley Fool UK)
    The one thing that really could give Rolls-Royce (LSE: RR) a boost is an end to travel restrictions. But the reverse is happening right now amid a Covid-19 Delta variant surge. As a result, the Rolls-Royce share price ended Monday down 5.6%, as travel-related stocks declined across the board. Rather than opening up to British travellers, Spain and Portugal have both announced new restrictions. They include the need for vaccination certificates and negative tests, with quarantine as an alternative. Rolls-Royce isn’t the only one suffering, as TUI, International Consolidated Airlines, and the other airlines have all lost ground. We might see some respite should the UK’s restrictions end as hoped on 19 July. But while we still face continually changing pandemic uncertainty, I really can’t see the Rolls-Royce share price getting that one boost that it really needs just yet. Still, pandemic problems will surely only delay the Rolls recovery, won’t they? I mean, that recovery is sure to come, isn’t it? I’m convinced there will be a recovery, but I’m concerned over how long it will take. And the shape of the company that comes out of it could have an impact on Rolls’ long-term valuation. Debt, balance sheet What I’m getting at here is the balance sheet. And progress on that front is the next thing that I think could help the Rolls-Royce share price. Rolls is disposing of its Spanish subsidiary ITP Aero, for around €1.5bn, and that will surely help. The rescue package at Rolls got the company out of its crisis. But it involved taking on £7.3bn in new debt in the 2020 year. I think that’s manageable, providing the company can maintain sufficient liquidity to keep it going until the cash flow taps start opening again. If it can’t, we could see a further round of fundraising. And that would surely hammer the share price again. Right now, we’re looking at a race between Rolls-Royce’s business turnaround and the cash running out. The closer we get to knowing which will win, the greater the effect we should see on the share price. Rolls-Royce share price, medium term These are two nebulous issues, so is there anything more concrete? Well, first-half results are due on 5 August. And I expect the update will be one of the most keenly awaited in the FTSE 100 this year. And everyone will presumably be looking to the state of the firm’s balance sheet. With flying hours hardly changed so far this year, I’ll be looking for anything suggesting that possible further refinancing is on the cards. I’ll be hoping we don’t get it, and looking for upbeat outlook news. If the company makes optimistic noises regarding its balance sheet, and appears confident that it has enough liquidity, I think the shares could get a boost. I do see a strong long-term future for the company. But in the short-to-medium term, I fear events are more likely to have a negative effect than positive. I will not buy for now. The post The Rolls-Royce share price: 3 things that could give it a boost appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? Top British stocks for July Can the Rolls-Royce share price maintain its momentum? The Rolls-Royce share price is up 170%. Should I buy now? Will the Rolls-Royce share price rise in July? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  8. What’s going on with the Rolls-Royce share price? (12/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) is in a funk. Again. The Rolls-Royce share price is trading at below 100p levels today after managing to hold up above these levels for much of the past month.  Much progress for Rolls-Royce This is mystifying. The outlook for aviation is better now than it has been at any time in the past year. Supply and service of civil aircraft engines is Rolls-Royce’s biggest revenue source, so that is good news. Also, its other business segments are in a healthy place.  And Rolls-Royce also has plans in place for the future. It is in the process of forming a partnership with Cavendish Nuclear, an engineering company, to facilitate the development of Rolls-Royce’s small nuclear power plants. In another bid to support clean energy, the company is also set to launch the fastest electric plane.   To me, these look like developments with great potential as we move towards a cleaner, greener future. Whether or not they add to the company’s bottom line remains to be seen, but for now that is tomorrow’s question. Why the share price drop? So why the drop in share price? I think one glaring reason is that the pandemic continues. It is true that vaccinations are happening speedily. It is also true that the intensity of Covid-19 has declined. However, it is equally true that coronavirus cases are on the rise. And while we are all looking forward to ‘Freedom Day’ next week, there is also a possibility that restrictions may come back after the summer. The worst affected from this ongoing uncertainty, is of course the aviation sector.  It is no coincidence then, that Rolls-Royce is hardly the only aviation related stock to decline in the recent months. FTSE 100 airline giant International Consolidated Airlines Group and the FTSE 250 low-cost airline easyJet, are other casualties of this uncertainty.  With constant change in expectations, I can see why investors appear undecided about the Rolls-Royce share price. I had predicted as much, when I wrote about it in May. My takeaway was that its situation is volatile, and that is how it has stayed. Even though by last month, it was beginning to look like I might have been wrong. What would I do now? So what would I do about the Rolls-Royce stock now? I think it is a wait and watch situation for now. Unlike airline stocks, I have been particularly cautious about Rolls-Royce because even pre-pandemic its financial performance left a lot to be desired. So even if all goes back to normal, there is limited confidence in the company’s performance. This will also translate into limited share price increases.  Instead, if I want to buy stocks in the aviation pack, I think the likes of easyJet are a better buy for me. As a low-cost airline its bounce back can be faster.  The post What’s going on with the Rolls-Royce share price? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? This is what I’m doing about the Rolls-Royce share price Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  9. Where will the Rolls-Royce share price go in June? (31/05/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) has had one of the rockiest rides of the pandemic. Rolls has been up and down so far in 2021, going nowhere really in May. And we’re still looking at a fall of more than 60% over the past two years. Now, I’m going to say right up front, I’ve no idea where the Rolls-Royce share price is going to go in June. But we’re heading for developments that should affect the longer term. And I still can’t work out whether to buy Rolls-Royce shares as a recovery pick. For one, the next step in pandemic opening up is scheduled for 21 June. On that day, the government has pencilled in the removal of the final legal restrictions on social and business movements. Saying that, there’s that Indian variant thing. And the Prime Minister has already said we might have to wait a bit longer to get our full freedoms back. Further delays could see the Rolls-Royce share price weaken in June. Still, the opening up that we’re already enjoying is having its effect. In particular, sun-seekers are heading for the beaches again. And some travel-related shares are recovering. International Consolidated Airlines shares are up 26% so far in 2021, with easyJet not far behind with a 21% gain. TUI hasn’t had such a good year so far though, dropping a few percent. And the Rolls-Royce share price is down 4%. Rolls-Royce share price drivers It’s probably going to be a while before the travel sector recovery feeds through to Rolls-Royce. It’ll take time before engine maintenance requirements start to ramp up again. The other critical thing is that Rolls-Royce suffered big loss in 2020, and needed a major financial rescue package. There’s still cash on the books to keep the aerospace engineer going for a while yet. But will it be enough to last until profits return? The uncertainty behind that question must, surely, weigh heavily on the Rolls-Royce share price for at least a few months yet. At full-year results time, Rolls wasn’t in a position to make much in the way of predictions. That’s not surprising, as the company spoke of the uncertainties of the near- and medium-term outlook for civil aviation. It’s all about cash And we shouldn’t expect the cash situation to reverse in the current year. With those results, Rolls said it expects free cash flow to turn positive in the second half of 2021. But it still expects to suffer a free cash outflow of around £2bn for the full year. The company is hoping for positive free cash flow in 2022 of at least £750m. But that depends critically on the pace of recovery in flying hours, and the success of the firm’s cost-cutting strategy. I’m keenly awaiting first-half results due on 5 August. Any updates on the expected cash flow situation could drive the Rolls-Royce share price in either direction. In the meantime, any positive news from the aviation business in June and beyond would be welcome. I’m not buying yet. I’m going to wait for the clouds of uncertainty to clear a bit. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What’s happening to the Rolls-Royce share price? Could the Rolls-Royce share price fall below 100p? This is what I’m doing about the Rolls-Royce share price! As the Rolls-Royce share price remains cheap, I’d invest £3k Is it time to act on the Rolls-Royce share price? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Where will the Rolls-Royce share price go in June? appeared first on The Motley Fool UK.
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  10. Will the Rolls-Royce share price rise in July? (25/06/2021 - The Motley Fool UK)
    The Rolls-Royce Holdings (LSE: RR) share price has been grounded over the last year. As I write, the aero engine firm’s shares have risen by just 5% since June 2020. That leaves them well behind the 15% gain delivered by the FTSE 100 over the same period. I reckon investors have put Rolls in a holding pattern while they wait to see when air travel will really get started again. But with travel restrictions now being lifted more widely, will July be the month when the market takes a fresh look at Rolls-Royce shares? What do we know already? The last trading update from Rolls-Royce came in May. CEO Warren East said that flying hours during the first four months of 2021 were 60% below 2019 levels. This was pretty much as expected. Flying on long-haul routes has been supported by cargo demand and airlines preserving their airport slots by flying near-empty planes. East said that vaccination progress in the US and UK was “encouraging” but admitted the timing of a wider recovery was still “uncertain”. Rolls-Royce’s other business units were said to be performing as expected, with defence especially strong. A turning point? Rolls-Royce expects to start generating free cash flow “at some point during the second half of 2021.” When this happens will depend on how quickly engine flying hours recover, driving up billable revenue. I reckon this could be a key turning point for the Rolls-Royce share price. Free cash flow is essential to Rolls’ recovery. Without this, the group can’t start to repay debt. More widely, I think investors may be waiting to see if East can deliver on his free cash flow forecasts. Even before the pandemic, these targets were a key part of his turnaround strategy. The next trading update from Rolls-Royce is due on 5 August. I’ll be watching closely for any changes to the company’s forecasts. Rolls-Royce share price: up in July? At about 108p, Rolls-Royce stock has already risen by 170% from the lows of 40p seen when the company launched a £5bn refinancing last October. After such strong gains, is a recovery already priced into the shares? I estimate that Rolls-Royce’s current valuation is about 20% below the level seen at the end of 2019, including debt. If profits return to pre-pandemic levels, I can see some room for further share price gains. Broker forecasts also seem quite encouraging to me. Consensus forecasts for 2022 price Rolls’ stock on 25 times earnings. This multiple falls to 15 times earnings for 2023, when profits are expected to rise above 2019 levels. If international travel really takes off in July, then I think we could see Rolls-Royce’s share price move higher next month. However, I think a fair level of recovery is already priced into the stock. Any disappointments could cause the price to slump again. For this reason, I won’t be buying Rolls-Royce shares at current levels. I don’t think the potential rewards are big enough to outweigh the risks. The post Will the Rolls-Royce share price rise in July? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s why I’m avoiding Rolls-Royce shares Why is the Rolls-Royce share price having such an uncertain June? What’s going on with the Rolls-Royce share price? Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  11. Here’s why I’m avoiding Rolls-Royce shares (22/06/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares have not being doing too well lately. At the time of writing, shares in the engine maker stand at 107p. This is far below their pre-pandemic price of 235p and more than 75% below their highs of 436p in 2014. What happened? The effects of the pandemic are primarily responsible for the recent poor performance of Rolls-Royce shares. Global lockdowns have left air traffic at record lows. In turn, this has led to a steep decline in the demand for aircraft engines. This has hurt Rolls-Royce significantly as engines for commercial and business aircraft is its biggest source of revenue. Such a decline in demand was reflected in the poor performance of the company’s civil aerospace business segment, which generated just £5.1bn in 2020 compared to £8.1bn the year prior. Overall, revenues in 2020 declined 29% year on year from £16.5bn to £11.8bn. This performance translated to the bottom line with Rolls-Royce recording a loss of £3.4bn and a massive free cash outflow of £4.2bn. Light at the end of the tunnel? There is some positive news, however. Last year, the company announced a restructuring of the company designed to save £1.3bn. This should help the company reduce its losses in the near term. It also raised £7.3bn by selling new shares and issuing more debt. By doing so, the company has boosted its liquidity position making the prospect of near-term financial distress much less likely. There are also reasons to be optimistic about a recovery in the future. As the world becomes more vaccinated, the end of the pandemic is getting closer. When it does finally end, air traffic should recover to pre-pandemic levels, which should boost the demand for Rolls-Royce’s engines. In such a scenario, Rolls-Royce should recover strongly. Indeed, management are optimistic with their outlook. They estimate that the company will be free cash flow positive by the second half of this year and are targeting a positive free cash inflow of £750m in 2022. Am I buying Rolls-Royce shares? Despite these positive factors, I will not be adding Rolls-Royce shares to my portfolio. This is for a number of reasons. Firstly, any recovery in the demand for aircraft engines may take years. Eurocontrol, an air traffic control body, predicts that air traffic will not recover to pre-pandemic levels until 2024 at the earliest. Such a slow recovery means that the demand for Rolls-Royce’s engines will likely remain at depressed levels for a while. Secondly, the pandemic has left the company in a much worse position than it was before. In order to fund the huge cash burn, the company has had to issue a large amount of debt. Currently, the company has a net debt position (total debt less cash) of £3.6bn. This is huge for a company that is currently losing money. Lastly, the company was already struggling before the pandemic. This is demonstrated by the fact that the company failed to turn a profit in three of the five years leading up to the pandemic. This does not give me confidence for the long-term future of the company. For these reasons, I am not looking to buy Rolls-Royce shares any time soon. The post Here’s why I’m avoiding Rolls-Royce shares appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Why is the Rolls-Royce share price having such an uncertain June? What’s going on with the Rolls-Royce share price? Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Ollie Henry has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  12. 2 reasons to buy Rolls-Royce at $1.70 (19/03/2021 - Reddit Stocks)
    My thesis for buying $RYCEY (Rolls-Royce) is this simple line here: “In terms of their aims, management has a goal of developing low carbon solutions for hybrid, hydrogen, and electric powered craft"?????? 1.) I think 2021/22 might be a better year 2.) Free cash flow for these new green solutions 2 reasons to buy Rolls Royce   submitted by   /u/xsweeperx [link]   [comments]
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  13. The Rolls Royce share price is below 100p – so is it a buy? (20/07/2021 - The Motley Fool UK)
    I have to say that whenever the Rolls-Royce (LSE: RR) share price is below the rather arbitrary 100p per share level, I’m tempted to look into whether buying the shares is worthwhile. Well, that’s the case right now. At the time of writing the shares have dipped to around 90p. Hard to imagine that five years ago, the shares were 250p and at the start of 2020 they were 233p. A lot has changed since then. Are there reasons for optimism? One of the biggest potential reasons to be cheerful has to be around the resumption of travel. With many Britons double vaccinated, holidays could be back on the cards. Although restrictions in other countries and slower progress in long-haul destinations like Australia may hold back progress towards travel resuming as normal anytime soon. Rolls-Royce is likely to accelerate away from a reliance on commercial airlines and exciting new technologies like modular nuclear power stations, as well as more work in the defence industry, could make earnings more reliable and stable. Given how badly the shares have done, there’s the paradox that any good news – especially any pleasant surprises – could well see the Rolls-Royce share price do well. I suspect expectations are now so low that there could be significant upside. The CEO has been at Rolls-Royce since 2015, so there’s a steady hand at the helm. At this difficult time a settled and competent management team is absolutely vital and I think it’s reassuring to any investor. Once the worst of the pandemic is over Roll-Royce can once again target better cash flow. All that said, its chair is set to change later on this year, but hopefully by October we’ll be starting to see more air travel and Rolls-Royce getting off its knees. The bad news for the Rolls-Royce share price It’s much easier to find bad news. Revenues are unlikely to recover to anywhere near normal levels soon. In 2022 it’s forecast revenues will still be significantly below where they were in 2015. The company has been loss-making for the last few years and margins have fallen through the floor. Not all the problems with the Rolls-Royce share price can be blamed on the pandemic. Remember, the Trent engine problems meant the engineer was hemorrhaging money before anyone had heard of Covid-19. For now, given it makes so much money from how many air miles planes fly, Rolls-Royce remains at the mercy of the pandemic. Would I invest? That’s why on balance I think there are better investments than Rolls-Royce out there. Given the challenges the company faces, I think buying the shares is a gamble and one I’m personally unlikely to take. But if the shares dip even further, I may reconsider that view as a rather contrarian long-term investment. The post The Rolls Royce share price is below 100p – so is it a buy? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Can the Rolls-Royce share price recover in 2021? 3 FTSE 100 shares to buy after the ‘Freedom Day’ crash Will the Rolls-Royce share price keep falling? How low can the Rolls-Royce share price go? The Rolls-Royce share price falls again! Here’s what I’m doing about it Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  14. Could the Rolls-Royce share price fall below 100p? (27/05/2021 - The Motley Fool UK)
    One of the frustrating things for shareholders in Rolls-Royce (LSE: RR) in recent months has been its struggle to maintain altitude. The Rolls-Royce share price reached 127p in March. But since then it has moved markedly lower. Over the past year, it has lost 10% of its value. So might the shares might fall beneath 100p? Why has the Rolls-Royce share price been falling? One of the points to consider is what has been exerting downward pressure on the aerospace giant’s share price lately. The company is significantly exposed to air travel. The more hours planes with its engines installed fly, the greater its service revenue. Over the past couple of months, hopes of increased European travel have been dampened. I think that has affected the share price. Reasons to be bullish But I see some positive signs for the Rolls-Royce share price. For example, the company said this month that performance so far this year has been in line with expectations across all of its business units. That lack of nasty surprises should help restore some investor confidence in Rolls-Royce. The company has repeatedly said that it expects to turn free cash flow positive in the second half of this year. That would be big news, as lately it has been bleeding cash. If it is able to turn free cash flow positive, that will reassure investors about its liquidity. Last year, a rights issue was heavily dilutive. If shareholders are more comfortable about liquidity growing due to free cash flow, it could be positive for the Rolls-Royce share price. Will the shares fall below 100p? Despite what I regard as positive developments, the Rolls-Royce share price has been drifting downwards lately. If there are more reasons to doubt the speed and scale of European aviation recovery, I think that could easily push the shares below 100p. Any further delay to the free cash flow target would also hit the shares badly in my view. So, I don’t think the shares will necessarily stay above 100p. I could certainly see them falling below that level again. My move on the Rolls-Royce share price But I think the longer-term outlook for the Rolls-Royce share price remains good. Flying demand will come back, in my view – it’s just a matter of time. There are some promising signs outside Europe. Already in the US, for example, United Airlines has upgraded its second-quarter earnings forecast. Such improved demand should help Rolls-Royce. I still think the Rolls-Royce share price could get to 150p or higher this year. But I don’t like how sensitive the share price is to demand recovery in the aviation sector. It has no control over that so is effectively a hostage to fortune. For that reason, even though I do see potential upside, I’m not currently planning to buy Rolls-Royce shares. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading This is what I’m doing about the Rolls-Royce share price! As the Rolls-Royce share price remains cheap, I’d invest £3k Is it time to act on the Rolls-Royce share price? Can the Rolls-Royce share price stay above 100p? The Rolls-Royce share price has been ticking upwards. Is it time to buy now? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Could the Rolls-Royce share price fall below 100p? appeared first on The Motley Fool UK.
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  15. Are these 2 FTSE 100 travel stocks a bargain? (21/07/2021 - The Motley Fool UK)
    The FTSE 100 took a huge hit on Monday, losing £44bn in value as fears of a worldwide Covid-19 resurgence sparked a mass sell-off. The index fell 2.3%, closing at 6844.4, its lowest closing point since April. Travel stocks were hurt the most, down 3.5% to levels not seen since last year.  Two of the biggest losers were Rolls-Royce (LSE: RR) and International Consolidated Airlines Group (LSE: IAG). They have regained their losses over the past two days, but are still near historic lows. The Rolls-Royce share price is currently 97p, down from 1,088p in August 2018, while the IAG share price is 171p, down from 726p in June 2018. With international travel still up in the air, is the tremendous potential for growth in these stocks worth the risks? A brighter tomorrow The majority of Rolls-Royce’s revenue comes from its global reputation as a builder and repairer of civilian aircraft. A price recovery to the giddy days of 2018 is dependent on a strong recovery of the civilian aviation sector. This will be almost entirely down to how the global coronavirus situation develops over the next couple of years. While the Rolls-Royce share price is down 20% in the last month alone, there is reason to be optimistic. In the UK, every adult has been offered a first vaccine dose, with all restrictions lifted from 19 July. The situation is moving in Europe and the USA, but at least half of adults have had their first dose.  There are risks though; the company has been selling off assets to improve its financial position. In December, it sold its civil nuclear business to Framatome. In February, it sold Bergen Engines to TMH Group. It is currently trying to sell its 50% stake in AirTanker, a military aircraft provider. The plan is to release £2bn of equity into the business to help weather the ongoing storm. I think the key question is whether aviation restrictions end before Rolls-Royce runs out of money. If all goes well, international travel could bounce back sharply, with a corresponding share price increase. If not, the share price could sink even further. I think the risks of buying this FTSE 100 company could be worth the reward in the long term. Come fly with me IAG is the owner of both British Airways and Aer Lingus. Even more than Rolls-Royce, its recovery is entirely Covid-19-dependent. Although ‘Freedom Day’ came two days ago, the UK is still in the middle of a ‘pingdemic.’ One quarter of schoolchildren are off school, and employers have branded the current self-isolation rules ‘unworkable.’ Even with relatively high vaccination rates, the UK requires vaccinated French tourists to isolate. Meanwhile, vaccination rates abroad are still too low to facilitate mass air travel, with most countries still hostile to the idea of regular tourism.  I don’t think the numbers are looking good. IAG lost over one billion euros in the first quarter of this year alone. The second quarter earnings report is coming up next week, and it seems likely that a similar loss will be incurred. Yesterday it lost a court bid to force the UK government to explain how it justifies coronavirus rules restricting air travel. Even as a FTSE 100 stock, the uncertainty is too much for me to buy right now. The post Are these 2 FTSE 100 travel stocks a bargain? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Would I buy Rolls-Royce shares at 8-month lows? The Rolls Royce share price is below 100p – so is it a buy? Can the Rolls-Royce share price recover in 2021? 3 reasons why the IAG share price has crashed 3 FTSE 100 shares to buy after the ‘Freedom Day’ crash Charles Archer has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  16. If you haven’t yet, I recommend looking at this Rolls Royce Long ETF, as Rolls Royce is starting to pick up! Not a financial advisor. (23/02/2021 - Reddit Stock Market)
      submitted by   /u/CranusCranii [link]   [comments]
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  17. Will the Rolls-Royce share price keep climbing? (03/04/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has been climbing steadily over the past few months. Following this performance, year-to-date, the stock has increased in value by around 3%. Over the past six months, the performance is far more impressive. Since the end of September last year, the Rolls-Royce share price has increased in value by more than 130%. Unfortunately, the stock still has a long way to go to recover from its pandemic losses. Since the end of 2019, shares in the aerospace and defence contractor have lost around 56% of their value. However, past performance should never be used as a guide to future potential. And with the outlook for the business improving, I’m starting to wonder if the Rolls-Royce share price can continue to push higher and claw back some of its pandemic losses over the next few weeks and months.  Improving underlying trends When the company reported its full-year 2020 results in the middle of March, management declared that the worst was behind the business. It seems they were on the money. Since Rolls issued this statement, several large american airlines have announced they are boosting capacity for the rest of the year due to better-than-expected demand. The top 12 US domestic carriers flew 46% fewer seats overall in 2020 than in 2019. This year, carriers are expected to fly just 10% fewer seats than they did in 2019. What’s more, at least two airlines are planning to increase seat capacity in July and August by 20% compared to 2019 levels. The bulk of Rolls-Royce’s revenues come from service contracts connected to engine sales. These service contracts are linked to flying hours. So, the more time the company’s engines spend in the sky, the better. Many large US carriers plan to ramp up flying in 2021, suggesting that Rolls is past the worst. The company doesn’t supply every aircraft engine globally, of course, but it makes up about a third of the market.  Rolls-Royce share price: past the worst? All of the above doesn’t mean the company’s recovery is guaranteed, but it does seem to suggest there’s a tailwind behind the business. Therefore, I would buy the stock for my portfolio today, as I think the recovery is only just getting started.  That said, Rolls-Royce will have to overcome some significant challenges before its recovery is complete. The coronavirus pandemic is not over yet. In many regions around the world, international travel is still restricted. That could hold back growth. At the same time, the organisation has a lot of borrowing. Management is trying to sell assets to pay down debt, but this process is taking a while. Some of the group’s planned sales have also sparked security concerns. For example, Norway recently blocked the sale of Rolls-Royce’s Bergen Engines arm for this very reason.  These risks and threats could hold back the company’s recovery. However, on balance, I believe the stock looks attractive. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do The Rolls-Royce share price: amazing value for my ISA? 2 aerospace stocks I’d buy Rolls-Royce shares: Norway blocks its sale. Should I be worried? Should I buy Rolls-Royce shares for my portfolio today? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Rolls-Royce share price keep climbing? appeared first on The Motley Fool UK.
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  18. Rolls-Royce share price: I think we’ve seen the bottom (14/03/2021 - The Motley Fool UK)
    The Rolls-Royce Holdings (LSE: RR) share price has fallen by 25% over the last year. The stock is still down by 50% from its pre-pandemic levels. I’m not surprised the shares haven’t recovered fully. Rolls’ revenue fell by 37% last year and the group reported a £3.2bn loss. However, CEO Warren East has taken decisive action to raise cash and restructure the business. I expect these efforts to pay off, supporting a strong recovery over time. Now that the future looks more secure, should I buy Rolls-Royce shares? I’ve been taking a fresh look. What I learned from Rolls’ results Rolls’ best-known business is its civil aerospace division, which makes and supports jet engines for airliners. With most airlines grounded for much of last year, flying hours were down by 57%. Revenue from this business fell by 37%, leading to a £2bn operating loss. However, civil aerospace is only one part of this large business. I believe the other parts of the group could help support Rolls-Royce’s share price as the business recovers. The biggest contributor to profits last year was Rolls’ defence division. This business generated an underlying operating profit of £448m in 2020, up by 8% from 2019. Defence activity hasn’t really suffered in the pandemic, providing great stability. Another source of profits was the power systems operation. This makes engines for ships and other industrial markets. Power systems generated an underlying profit of £178m in 2020. Although this was 50% lower than in 2019, Rolls says demand is already recovering. Finally, the ITP Aero business, which makes parts for jet engines, delivered a £68m profit. Rolls-Royce is actually trying to sell ITP Aero at the moment and says it’s in conversations with a number of buyers. I’d guess they’ll be reassured by the ongoing profitability of this business, which is supported by defence revenue as well as civil aviation. Rolls-Royce share price: is it cheap? Although Rolls’ stock is still trading 50% below pre-pandemic levels, I’m not sure how cheap it really is. The reason for this is that the company issued 6.4bn new shares last year when it raised £2bn in a rights issue. This rescue fundraising increased Rolls’ total share count from 1.9bn to 8.3bn. The number of shares issued by a company is important when calculating earnings per share. Even if the total profit is flat, earnings per share will fall if new shares are issued. This is known as dilution. Rolls-Royce reported an underlying profit of £306m in 2019, giving underlying earnings of 15.9p per share. I estimate that earnings would fall to just 3.7p per share if the same profit was generated today. At the time of writing, Rolls-Royce’s share price is 114p. This values the stock at 30 times 2019 earnings, after dilution. Broker forecasts for 2022 suggest that next year’s profits will be at a similar level to 2019. That means the stock is valued on 30 times forecast earnings, too. For me, that isn’t cheap enough. Although I expect Rolls’ profits to rise above this level in the future, I don’t want to pay too much for future growth. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’m tempted by the Rolls-Royce share price. Here’s why I’m not buying FTSE 100 stock watch: will the Rolls-Royce share price recover? The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? Rolls-Royce share price: can it go back up to 200p? Why Rolls-Royce shares nudged higher today Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: I think we’ve seen the bottom appeared first on The Motley Fool UK.
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  19. International Consolidated Airlines reports FY results (26/02/2021 - Seeking Alpha)

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  20. Rolls-Royce shares: 1 reason to buy and 1 reason to sell (11/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) was one of the companies hardest hit by last year’s stock market crash. It didn’t really partake in the late 2020 recovery either. And the Rolls-Royce share price is still down around 65% over the past two years. Pandemic meant lockdown, lockdown meant nobody flying. Nobody flying meant no aircraft engine maintenance. Well, there was some, but well below normal levels. But with the end of Covid restrictions moving ever closer, many are heading off on their hols again. And that’s my chosen reason I’d think of buying Rolls-Royce shares. In a recovery situation, I want to see a troubled company’s business starting to pick up again. Or, at least, strong indications it’s about to happen any day now. I’m hoping we’ll see some hard evidence of recovery with first-half results, due on 5 August. Rolls-Royce share price: ready for the rebound? I think we might see a spark of interest in the Rolls-Royce share price in the days leading up to that. But in the meantime, I’m buoyed by the firm’s AGM statement from May. Chief executive Warren East said: “Looking ahead, we are confident that the significant restructuring actions we have taken in 2020 will deliver permanent cost reductions, positioning us well for the rebound in international air travel.“ So we have a leaner and more cost-efficient Rolls-Royce now, and that’s maybe not a bad thing anyway. I’ve always liked the company ,and from this direction it looks like a ‘buy’. But what’s the other angle, and why might I rate it a sell? In a word, cash. Rolls-Royce needed to take on a whole new financing deal just to keep going. Part of that involved raising around £2bn from disposals. But the company also raised £7.3bn from new debt and equity. That was in a year that resulted in a pre-tax loss of £2.9bn, and a free cash outflow of £4.2bn. Share price valuation Those are scary, scary numbers. And they make all previous valuation metrics utterly meaningless. With the degree of restructuring that’s been needed, we’re essentially looking at an an entirely new version of Rolls-Royce now. And it’ll surely take some time for markets to settle on a sensible long-term valuation. It’ll definitely take me some time to work out where I think the Rolls-Royce share price should be. I can’t see things settling this year. The company said it’s targeting positive free cash flow in the second half of 2021. And it hopes to reach at least £750m by 2022. If that comes off, my confidence will be boosted. But there’s still significant risk here. And my biggest fear is that the cash could run out and Rolls-Royce might need further financing. If that happens, a resulting combination of more debt and more equity dilution would throw all valuation measures further up in the air again. Hopefully, we’ll get a clearer idea of how the financial picture is looking once we have those H1 figures. Until then, I’m just watching. The post Rolls-Royce shares: 1 reason to buy and 1 reason to sell appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? This is what I’m doing about the Rolls-Royce share price Should I buy Rolls-Royce shares today? Where will the Rolls-Royce share price go in July and beyond? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  21. Does the Rolls-Royce share price make me want to buy in 2021? (21/04/2021 - The Motley Fool UK)
    As stock market crash stories go, the Rolls-Royce Group (LSE: RR) one is not pretty. But is there going to be a happy ending? Disappointingly, the Rolls-Royce share price recovery has gone off the boil a little, and the price is down so far in 2021. Over the past two years, the damage amounts to a painful 68% fall. Rolls-Royce depends on civil aviation for the biggest slice of its income. And while planes were grounded and engines didn’t need maintenance and repair, income for Rolls was hammered. It’s important to remember, though, that that’s not all there is to Rolls-Royce. The firm also has power systems and defence divisions. Still, the grounding of passenger planes was tough. But things are starting to look better now. Or are they? Folks in the UK seem to be super keen to book their holidays in the sun (almost as keen as they are to get back to the pubs, it seems). And the early 2021 recovery in the Rolls-Royce share price was surely based on anticipation of a sun-seeking summer. Some transport firms, including TUI, have made positive sounds about the prospects for international summer holidays this year. It might happen, and the Rolls-Royce share price could head upwards again. New Covid fears But fresh Covid-19 waves have already started around the world. And only this week, the British Prime Minister warned that we’re likely to see a third wave this year. I doubt it will be as devastating as those already past. But I won’t be booking any flights just yet. The prospects for 2021 don’t really matter too much for me anyway. No, I’m thinking of the longer-term future for the Rolls-Royce share price. About what things will be like in, say, five years. And whether the current valuation of the company suggests the shares are a bargain. And that’s where I’m just not sure. Firstly, Rolls-Royce did get itself into a sustainable financial situation. At least, I think it did, for now at least. Unless things get stretched and the company has to go back to the markets for a fresh injection of cash, that is. Is that likely? If the aviation business doesn’t get going again fairly soon and Rolls doesn’t see an improving income stream, I wouldn’t be surprised. Rolls-Royce share price progress? So when will we see the cash flows needed for sustained Rolls-Royce share price progress? Some observers suggest that aviation could get back to 2019 levels by 2024-2025. But those are among the more optimistic guesses. There’s increasing pressure from climate change too, with carbon emissions targets being brought forward. I wouldn’t be at all surprised if 2019 turned out to be a peak year for leisure flights, not to be equalled for a long time. So, on the one hand, I’m seeing a company that looks undervalued on the face of it, and that I’ve liked for years. And I think the Rolls-Royce share price could indeed have a strong future. But there are just too many uncertainties between now and next year for me. So no, I’m not going to buy in 2021. Maybe 2022. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 ways the Rolls-Royce share price could benefit from the reopening economy Is the Rolls-Royce share price undervalued? Is reopening important for the Rolls-Royce share price? Should I invest in Rolls-Royce or Aston Martin shares right now? This is what I’d do about the Rolls-Royce share price right now! Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Does the Rolls-Royce share price make me want to buy in 2021? appeared first on The Motley Fool UK.
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  22. Rolls-Royce shares: 3 reasons why I’m optimistic for 2021 (17/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR) shares have enjoyed a decent start to 2021. The share price is up around 15%, over a period when the FTSE 100 index is only up around 3%. This outperformance has coincided with the release of full-year results, the UK vaccination initiative gaining momentum, and other factors. Over a broader one-year period, the share price is still down over 50%, but I think there are several reasons to be more optimistic for 2021. Full-year results The first reason I’m optimistic for Rolls-Royce shares might sound strange. It’s actually relating to the full-year results that came out last week. The loss before tax was £2.9bn, an exceptionally large figure. Even though this figure was well-reported in the news, Rolls-Royce shares traded sideways on the release date.  Normally I’d expect a share price to plummet on such a bad figure, but it got me thinking. Rolls-Royce shares are already heavily down from 2020. Regular trading updates made investors aware of the bad situation within the company. So really, it was no surprise when the final figure came out. In effect, the share price didn’t fall because it was expected. So if I can discount the loss, what else was there to think about? Well the company cut £1bn in costs during the year. It raised £7.3bn in new capital, and expects to generate £2bn from selling off different assets. From that angle, 2021 looks positive.  A second reason I’d look to buy Rolls-Royce shares is the diversification of the business. For a while, I thought of the business only operating in the civil aviation space. Although this is the largest area, it’s not the only one. The results showed that good profits were made from its power systems and defense arms. In fact, the revenues generated from these two areas combined were larger than from civil aerospace. Going forward into 2021, if these areas can continue to grow, and civil aerospace recovers, Rolls-Royce shares could see a strong move higher. The business would be firing on all fronts, something it hasn’t been able to do in the recent past. Sentiment helping Rolls-Royce shares The final reason I like Rolls-Royce shares is the correlation between positivity and the rising share price. When I mean positivity, I’m talking about the sentiment regarding the pandemic. Here in the UK, the vaccination rollout is marching on. In the US, President Biden has also set out an ambitious timeframe to get people vaccinated. The more this continues, the quicker international travel and flying will start again. On balance, there are still reasons to be cautious with the stock. For example, the impact of the pandemic is likely to linger for some time. It’s not as though anyone can click their fingers and restore the billions lost in 2020 overnight. It’s going to be a slow road to recovery, and one that could weigh on Rolls-Royce shares for a while still to come. As a long-term investor, I can look past this. I would look to buy the stock, even with the knowledge that the recovery won’t be overnight. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’d buy Rolls-Royce shares despite the big 2020 loss Rolls-Royce share price: 2 reasons why I’d buy after earnings The Rolls-Royce share price is above 100p: what next? Rolls-Royce share price: I think we’ve seen the bottom I’m tempted by the Rolls-Royce share price. Here’s why I’m not buying jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce shares: 3 reasons why I’m optimistic for 2021 appeared first on The Motley Fool UK.
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  23. Sell in May and go away? Here’s what we’d have missed (30/05/2021 - The Motley Fool UK)
    The investing saying that we should “Sell in May and go away” is a common one. The idea is that stock markets drift a bit during the summer when people have better things to do. And they get serious again once the days start getting shorter. There is evidence that the summer months are weaker than the rest of the year, on average. And in 2020, it might have been better to switch off from the stock market for other reasons. But what about investors who sold out at the beginning of May this year? What might they have missed? There are some nice gains at Lloyds Banking Group, for one thing. The Lloyds share price has been climbing all year, up more than 35%. And the momentum carried on through May. Lloyds shares are still down since the pandemic, and it’s been a tough five years. But would I sell in May, just when my shares are finally starting to pick up? What the rest of the summer still holds is anybody’s guess. But with Lloyds dividends coming back, I’d still be a buyer now and not a seller. Not all shares have kept on going up, mind. Argo Blockchain has been big in the news in 2021, as it chased the Bitcoin price upwards. But it’s been a poor May for Argo shareholders, following several previous poor months, as the shares have declined. Selling in February might have been better, with hindsight. So sell in May? If someone gave me some Argo Blockchain shares, yes, I’d sell them. In May, or in any month. Dump before the summer? The UK’s airlines have picked up in 2021, with International Consolidated Airlines ahead more than 20%. And easyJet is not far behind. It’s all been down to the opening up after lockdowns, as people turn their thoughts to sun and sand. The airlines have had a pretty mixed month in May, mind, so what’s next for them? I’ll make no short-term guesses. But I also wouldn’t sell just ahead of the summer holiday season. Related to the airline business, the Rolls-Royce share price hasn’t gone anywhere in May. In fact, it’s close to flat overall since the start of 2021. But if I owned Rolls shares, would I have wanted to sell in May? Ahead of the summer season when we might see things perk up as planes get flying some more? Not a chance. An alternative to “Sell in May“ These share price movements I’m talking about are all very short term. They say absolutely nothing about where the shares will go in the longer term. So no, I wouldn’t base any investment decisions on short-term moves, and this look at them is just for a bit of fun. But I do have a variation on the “Sell in May and go away” theme. Whenever I invest, I only buy shares when I feel I’d be happy to “Buy now and go away for five years.” That’s my minimum investing horizon. And to follow Warren Buffett’s advice, if I wouldn’t hold a share for five years, I wouldn’t hold it for even five minutes. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 FTSE 250 growth stocks to buy 3 reasons I like Royal Mail shares 3 cheap FTSE 100 shares for my investment portfolio The Aviva share price is up 50%! Yet it’s the 6.5% yield that really tempts me What’s going on with the BP share price? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Sell in May and go away? Here’s what we’d have missed appeared first on The Motley Fool UK.
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  24. The International Airlines Group (IAG) share price has been rising. Should I buy the stock now? (07/04/2021 - The Motley Fool UK)
    The International Airlines Group (LSE: IAG) share price is up over 40% so far in 2021. Over the past year, the British Airways owner’s shares have risen by around 30%. This improved momentum suggests to me that a lot of bears may have changed their view on the shares. Let’s have a look at the prospects for further rises in the International Airlines Group share price. Reopening should boost air travel demand A key driver for the share price recovery seems to have been the expectation that as vaccinations roll out, demand for air travel will recover. Meanwhile, while passenger demand remains below normal, the cargo business has been a helpful contributor. In the fourth quarter, for example, the company operated 969 flights just for cargo. But risks remain for the IAG share price. Passenger demand may recover only slowly. Some may never come back at all, as people decide to holiday in their own countries. Survival could improve industry economics It’s been a brutal time for the airline industry. From the collapse last year of Flybe to the insolvency of the company’s own Level Europe brand, the airline industry in the UK and overseas has been hard hit by the pandemic. One upside of that is that once the dust settles and demand returns, it may be easier for legacy airlines than it was before. Less competition could mean more pricing power and higher profit margins. With its strong collection of brands, IAG is well positioned to benefit from any such swing in structural economics for the aviation industry. That could help the IAG share price. But it could help low-cost competitors like Ryanair even more. Better industry economics don’t necessarily mean better prospects for International Airlines Group. Cost control could help the IAG share price For years even before the pandemic, International Airlines Group was a ruthless cost cutter. That has been a useful skill for survival during the past year. From cashing in its art collection to considering selling its headquarters, the company has made moves which are doubtless painful but help its financial position. A combination of cost cutting and cash raising means the company continues to have strong liquidity. It started this year with €8.1bn of liquidity. That puts it in a strong position even if the aviation recovery takes longer to materialise than many people expect, in my view. It also can help the company’s future profitability. Even with strong liquidity, speedy demand recovery is needed to stem more losses. The IAG share price looks cheap for a reason The company’s best profit from continuing operations in the past few years was in 2018. International Airlines Group earned €2.9bn. Liquidity raising over the past year has diluted shareholders. With the current share count, €2.9bn would equate to around 58c earnings per share. That’s about 50p, suggesting that even after the IAG share price rise, the shares trade on a prospective price-to-earnings ratio in the low to mid single digits. That sounds tempting. But that rests on the company restoring its former profit level. Right now that is far from given. A lot of factors remain outside International Airlines Group’s control. That is why I am not planning to buy IAG shares. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do Buy the dip? This is my view on the IAG share price today FTSE 100: this is what I’d do about the IAG share price today! If I’d bought IAG shares a decade ago, here’s how much I’d be in profit christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The International Airlines Group (IAG) share price has been rising. Should I buy the stock now? appeared first on The Motley Fool UK.
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  25. The Rolls-Royce share price is rising. Should I buy shares now? (10/03/2021 - The Motley Fool UK)
    Shares in Rolls Royce (LSE: RR) have moved around a fair bit lately. The share price is up 10% so far this year. In this past month alone it’s put on 20%. That performance hasn’t been enough to get the Rolls-Royce share price back to where it was, though — it’s still 40% lower than this time last year. Here I will look at why the share price has been rising and consider whether I ought to add Rolls-Royce to my portfolio right now. The Rolls-Royce share price received a vaccine boost The company’s recent share price increase has coincided with growing vaccination roll out. As an aeroplane engine maker and servicer, the company’s fortunes are tied to demand for air travel. Rising vaccination rates ought to see more countries ease travel restrictions. That is good for Rolls-Royce, as the greater utilisation of engines, the higher the demand for servicing. However, while vaccination rates are rising, air travel is still nowhere near its normal level. The company clearly expects demand to increase. It said it should be cash flow positive in the second half of this year. However, its prior estimate of how fast air travel would return was adjusted downward. I think it is too early to say with any certainty whether air travel demand will actually come back to anything close to normal levels even by the end of this year. The company has substantial liquidity so should be able to ride out the storm even if it doesn’t turn cash flow positive in the second half. But that liquidity has come at a cost, most notably a large dilution of shares in last year’s rights issue. The challenge to the Rolls-Royce share price isn’t just about demand from airlines. I think it also reflects some investor nervousness that the company’s much-enlarged share float reduces the benefit to the shares even if the business does recover fully. Hunting for better options I find some aspects of the investment case for Rolls-Royce persuasive. It has a well-admired engineering expertise and reputation. The aircraft engine market is expensive and difficult to enter, so players like Rolls-Royce have a position of strength. Its installed base of engines virtually guarantees service revenues for years and sometimes decades to come, although a demand shock such as a future pandemic could affect them. In that sense, the company comes close to having the sort of economic moat Warren Buffett appreciates. But the pandemic has shown up some weaknesses in the company’s business model too. It is highly sensitive to demand, which is largely outside its control. Even with budget savings such as the elimination of 7,000 positions last year, the fixed costs of developing and servicing plane engines are high. That is one reason I think the Rolls-Royce share price is still well below its former level, even after the recent increase. Life getting back to normal will improve business prospects for the company. But for pandemic recovery picks I am more attracted by pub operators like J. D. Wetherspoon or transport companies like Go-Ahead. Their structural economics appeal to me more than those of Rolls-Royce, and demand recovery could come faster than it may for the aero engines market. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today The Rolls-Royce share price is rising. Should I buy now? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is rising. Should I buy shares now? appeared first on The Motley Fool UK.
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  26. Will the Rolls-Royce share price soar in May? (02/05/2021 - The Motley Fool UK)
    I can’t resist an interesting turnaround stock. Right now, they don’t get much bigger or more interesting than Rolls-Royce (LSE: RR), whose share price has doubled since October. Unfortunately, the aero engine maker’s performance hasn’t been so good over longer periods. Rolls-Royce stock is flat on a year ago, and down by 60% over three years. With a return to normal now on the cards in many parts of the world, should I consider buying some Rolls-Royce shares for my Stocks & Shares ISA? A turning point? Rolls-Royce sells jet engines for airliners, but it makes most of its profits from aftersales maintenance and support services. When aircraft are grounded, airlines don’t need these services because the engines aren’t in use. However, that situation is starting to change. Aero engineer Meggitt reports that domestic flying in markets such as the US and China has already rebounded strongly. Here in the UK, the government is expected to start lifting restrictions on travel to Europe in May. It’s all good news. The only catch is that most of the routes opening up now are short-haul flights. Rolls-Royce engines are generally fitted to larger wide-body aircraft that are reserved for long-haul routes. Rolls-Royce isn’t expected to return to profit until 2022. But the stock market always looks forward and I think we’re at a turning point. In my view, the outlook for Rolls-Royce will start to improve during the second half of this year. What if we stop flying? Rightly or wrongly, I don’t think environmental concerns will stop people returning to the air. Video conferencing is useful, but it’s no substitute for face-to-face business meetings with new people. Likewise, you can’t lie on the beach or visit foreign cities on Zoom. For these reasons, I believe Rolls-Royce will see a gradual return to normal over the next couple of years. The pandemic has been painful for this FTSE 100 stalwart. But I think the changes made over the last year are likely to support stronger profits in the future. The only concern I have about buying Rolls-Royce shares now is whether the price is right. Rolls-Royce share price: too high or too low? All the most successful investments I’ve made have had one thing in common. I’ve bought the shares at the right price. So how does Rolls-Royce stack up today? On a short-term view, Rolls-Royce still looks fully priced to me. Broker forecasts suggest earnings of 4p per share in 2022. This prices the stock on 25 times forecast earnings. However, earnings are expected to rise to 7.2p per share in 2023, which values Rolls on a more modest 14 times forecast earnings. I can also see another attraction. The company hopes to start generating free cash flow (surplus cash) from its operations during the second half of 2021. CEO Warren East is targeting annual free cash flow of £750m in 2022, or soon after. I reckon this will be enough to allow the group to start paying back some of the loans it’s used to survive the pandemic. To be honest, I don’t know whether the Rolls stock will rise in May. But, on a longer-term view, I’d be comfortable buying Rolls-Royce while the share price is around 100p. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading FTSE 100 shares: 3 I’m considering for my ISA The Rolls-Royce share price is falling: should I buy now? The Rolls-Royce share price has fallen. Should I buy? Rolls-Royce share price: what’s in store in the coming months? As the Rolls-Royce share price falls, I’m still buying Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Zoom Video Communications. The Motley Fool UK has recommended Meggitt. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Rolls-Royce share price soar in May? appeared first on The Motley Fool UK.
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  27. Is the Rolls-Royce share price undervalued? (17/04/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has been one of the big losers of the pandemic. However, as the world starts to move on from the crisis, the outlook for the company is improving. As such, I’ve been taking a closer look at the business to see if it could be worth adding the stock to my portfolio as a recovery play.  Rolls-Royce share price outlook Rolls’ largest business is its civil aerospace division. This accounted for 41% of group revenues last year. Power systems and defence divisions made up 22% and 29% respectively. The remainder was other non-core business lines.  As the most significant division, Rolls’ fortunes depend on its civil aerospace enterprise’s profits. Revenues and profits have plunged here over the past 12 months. The grounding of the global aviation industry has forced airlines to slam the brakes on spending. The good news is the industry has started to recover. Airlines have started to place orders for new planes again, and more aircraft are back in the sky. Rolls earns a significant amount of revenue from its engine service contracts, which are tied to flying hours. This should help power the group’s recovery in the months ahead.  Risks and uncertainties However, while the outlook for the Rolls-Royce share price is improving, it’s also shrouded by an incredible amount of uncertainty. There are green shoots of recovery appearing for the aerospace sector. But another wave of coronavirus could hammer the industry once again. I also need to consider that even the most optimistic forecasts don’t expect the global aviation sector to return to 2019 levels of activity until 2024/25. That’s a few years away, and in the meantime, there’s no telling what could happen.  Further, the company’s balance sheet is weak. Last year, Rolls had to go to investors for an emergency fundraising to shore up its financial position. If the global aviation industry suffers another significant setback, the corporation may have to go to investors for more cash once again. There’s no guarantee investors would stand by the business in this scenario.  The bottom line All of the above means it’s incredibly challenging for me to establish whether or not the Rolls-Royce share price is undervalued at current levels. Until we know the pandemic is truly under control, there’s no guarantee the company will be able to return to 2019 levels of sales and profitability.  That said, in the best-case scenario, whereby sales return to 2019 levels in the next three to four years, I think the stock could be undervalued from a long-term perspective. As such, I’d buy a small amount of the company as a long-term investment for my portfolio.  However, due to the company’s risks and uncertainties, the Rolls-Royce share price isn’t going to be suitable for all investors.  Instead, I think the stock outlined in the free report below might be a better buy for risk adverse investors. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Is reopening important for the Rolls-Royce share price? Should I invest in Rolls-Royce or Aston Martin shares right now? This is what I’d do about the Rolls-Royce share price right now! What I’d do about Rolls-Royce Holdings shares now Will the Rolls-Royce share price bounceback in 2021? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Rolls-Royce share price undervalued? appeared first on The Motley Fool UK.
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  28. The IAG share price leaps 47% since January. Should I buy now? (09/06/2021 - The Motley Fool UK)
    The shares of International Consolidated Airlines Group (LSE: IAG) have been on a brutal roller-coaster ride since 2019. Shares in the owner of airlines British Airways, Iberia, and Aer Lingus collapsed spectacularly in 2020, before staging a stunning comeback. The IAG share price is up over a quarter in the past six months, rising 25.2% since 9 December. What next for this recovering stock? The IAG share price crashes Go back three years and the IAG share price was flying as high as a long-haul jet. In late June 2018, the shares were close to £5. But they suffered a tough 2018/19, diving below 290p by late August 2019. The stock then staged a strong recovery, bouncing back to 458p in mid-January 2020. Alas, Covid-19 infections then swept the globe, borders were closed, and air miles travelled collapsed. With passenger air miles crashing by four-fifths (80%) last year, the IAG share price duly followed suit. Over the next eight months, the shares descended like an emergency landing. On 29 September 2020 (less than nine months ago), the stock was on its knees, hitting a lifetime closing low of 91p. For IAG shareholders, 2020 was easily the worst year since the group’s creation in January 2011. But, as the old saying goes, it’s always darkest before the dawn — and the IAG share price has since skyrocketed. IAG comes back from the dead The best possible news for the IAG share price arrived in early November. This was when the world learned of the existence of several highly effective vaccines against Covid-19. At last, we had real hope for a world free of the coronavirus pandemic. Of course, this sent the IAG share price soaring like Concorde. At the end of 2020, it closed at 159.8p, up almost 69p — more than three-quarters (+75.6%) — from its late-September low. The good news for IAG’s shell-shocked shareholders is that the shares have continued to soar in 2021. As I write on Wednesday afternoon, they stand at 204.5p, up 8.59p (4.4%) on Tuesday’s close. In other words, the IAG share price has more than doubled (+124.7%) less than nine months after hitting an all-time low. Nice. What next for this popular stock? With the IAG share price rising by 28% so far this calendar year, what next for this widely held share? Experience has taught me not to predict the future, but I see IAG shares today as sitting on a knife-edge. If all goes well with Covid-19 vaccinations and infection controls, then IAG could well be one of the best FTSE 100 stocks to hold for a post-Covid-19 recovery. After all, it won’t take much for the group’s yearly revenues to beat the rock-bottom €7.8bn recorded in 2020 (versus €25.5bn in 2019). Then again, the shares have already surged by nearly half (+47.1%) since dipping to close at 139p on 27 January. For me, the IAG share price is a straight play on life returning to normal post-Covid-19. If this process is fast and smooth, then I expect IAG shares to follow suit. But if there are any big bumps on this road to recovery, then I expect similar volatility from this stock. In short, I fully expect the shares to be higher than their current level later in 2020/21. But I don’t own IAG stock at present — and I’d need to see clear signs of recovery before it goes on my buy list. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy IAG shares today? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Cheap UK stocks: should I be buying airline shares ahead of the summer? Should I Invest in IAG shares right now? The IAG share price has crashed 7% today! Here’s why Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The IAG share price leaps 47% since January. Should I buy now? appeared first on The Motley Fool UK.
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  29. The Rolls-Royce share price is falling in July: here’s why I’d buy (18/07/2021 - The Motley Fool UK)
    The Rolls-Royce Holdings (LSE: RR) share price has been falling in July. At the time of writing, the stock has dipped 15% over the last month, to just over 90p. I think this is an example of buy the rumour, sell the news. Investors bought into the reopening trade last October, lifting the stock from 35p to 135p in two months. But Rolls’ shares have drifted lower this year as the difficult reality of reopening has become clear. I think this slump could be a buying opportunity. On the verge of recovery At times like these, I find it pays to ignore the noise and stay focused on what’s actually happening at a business. At Rolls-Royce, I see a company that’s now on the verge of a recovery. I reckon there are three areas to watch. First, airlines are starting to fly their long-haul aircraft again. These planes are the main users of Rolls’ big jet engines. Second, the company is nearing the end of a restructuring programme that should deliver £1.3bn of annual cost savings. Finally, a recent report on Bloomberg suggests the company has is getting close to a final fix for the problems with its Trent 1000 engine. This has been an expensive embarrassment for the company, with total costs expected to top £2bn. Together, these factors are expected to support a return to profitability next year. Analysts are currently forecasting an annual profit of £363m in 2022, rising to £581m in 2023. With the Rolls-Royce share price sitting close to 90p, that prices the stock on 20 times 2022 forecast earnings, falling to just 12 times earnings in 2023. That seems reasonable to me. What about zero emissions? Airlines and aircraft suppliers are coming under pressure to make big cuts to their carbon emissions. To help meet these goals quickly without drastic cuts to flying, Rolls-Royce is working on a plan to make its engines compatible with “100% sustainable” synthetic fuels. The company says that by 2030 all new engines will be “compatible with net zero.” By 2023, some existing models of engine will also be compatible with synthetic fuels, allowing airlines to clean up their existing aircraft. In my view, innovations like these should help Rolls-Royce protect its market share and drive new growth over the coming decades. Rolls-Royce share price: a cheap buy? Would I buy Rolls-Royce at current levels? I’ve avoided the stock for a long time but I’m starting to be interested. However, there are still some risks which are making me hesitate. Rolls-Royce is emerging from the pandemic with a lot more debt than it had previously. I expect that repaying debt will limit the group’s ability to pay dividends for a few years. Another concern is that the business may not make the right choices when targeting net zero. Developing new technology for future generations of aircraft could be costly. The company won’t necessarily get it right first time. These extra costs could eat into the company’s profits in future years. On balance, I think Rolls-Royce shares look fairly priced at under 100p, but probably not cheap. At this stage, I might consider opening a small long-term position, but I wouldn’t bet the farm on this FTSE 100 stock. The post The Rolls-Royce share price is falling in July: here’s why I’d buy appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock The Rolls-Royce share price continues to fall: should I buy now? The Rolls-Royce share price is falling. Is the stock one to buy? Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  30. Why is Rolls-Royce a penny stock? (13/07/2021 - The Motley Fool UK)
    With Rolls-Royce (LSE: RR) trading below a pound, the famous engine maker is now a penny stock. But the Rolls-Royce share price traded higher just a couple of months ago – and I think it could go up again. Turbulence for the Rolls-Royce share price Concerns about demand for air travel meant that companies heavily exposed to it, such as Rolls-Royce, were hard hit after the pandemic started. The shares were climbing earlier this year, but have shed a quarter of their value since their mid-March highs. They are now up just 4% over the past year. There are a number of reasons for that. One reason is the inconsistent pace at which air travel demand is coming back. With each setback, such as delays in lifting restrictions, investors fret about the prospects for Rolls-Royce. That has hit the Rolls-Royce share price. A second reason is the company’s liquidity. It massively boosted liquidity last year. But it did so at the expense of existing shareholders, through a heavily dilutive rights issue. While I think the company currently has ample liquidity, the proven risk of dilution could be dampening enthusiasm for the shares. Quality on the cheap Often, penny stock status suggests concerns about a company’s future business prospects. Undoubtedly a decline in demand for aircraft engine servicing has hit Rolls-Royce hard. Last year it booked a £3.1bn loss. With demand for air travel still significantly below pre-pandemic levels, there is a risk that weakened revenues in the company’s core engines business will weigh on profits again this year – and perhaps beyond. But there are signs of longer-term resilience in the air travel market, including large aircraft order from major airlines. Only a few global aircraft engine makers of scale exist, and Rolls-Royce is one of them. That alone ought to help it return to financial health in future. Add to that the fact that the company isn’t just reliant on civil aviation – and its other business divisions have held up fairly well during the pandemic. So while the Rolls-Royce share price may languish beneath the pound mark for a while yet, I don’t expect it to stay there forever. Where next for the Rolls-Royce share price While I see potential for a higher Rolls-Royce share price, a key question is: what will be the driver to move it? One possible factor could be the release of the company’s interim results, due next month. Rolls-Royce has repeatedly said it expects to become free cash flow positive in the second half of this year. An update on that target at the time of the interim results could lead to a rerating of the shares, either positively or negatively. The effects of the company’s cost savings programme ought also to show up more clearly now than it did before. If it looks like it has cut out costs without damaging Rolls-Royce’s reputation with customers, that could also provide a boost to the Rolls-Royce share price. For now, however, I continue to watch from the sidelines. I do not plan to buy Rolls-Royce shares in the absence of clear evidence of strong, sustained business recovery. The post Why is Rolls-Royce a penny stock? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading What’s going on with the Rolls-Royce share price? Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  31. Rolls-Royce share price: what’s in store in the coming months? (26/04/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR) was one of the biggest losers of the stock market crash caused by Covid-19 last year. What is ahead for the Rolls-Royce share price in the coming months, and is there an opportunity here for me to pick up cheap shares? Rolls-Royce share price woes Between February 2020 and September 2020, the Rolls-Royce share price lost 80%. Across the whole of 2020, the Rolls-Royce share price declined by over 50%. Its debt levels rose as it borrowed to keep the lights on, and it also cut jobs and announced a rights issue to generate cash flow. In December, the Rolls-Royce share price experienced its highest post-Covid-19 price. Shares were trading for 135p per share. Since that time, however, the share price has fallen over 20%.  Challenges and outlook ahead Airlines are operating more than at this time last year. The issue here is that Covid-19 is still rife and there could be further restrictions if another wave hits. In terms of Rolls-Royce, I believe the overall outlook is improving. I do believe, as I write, the worst of the crisis is over. It has taken the necessary steps to see it through some tough times and has begun to shore up its once-beleaguered balance sheet. There are still some challenges it needs to overcome, however. In a recent trading update, Rolls-Royce predicted a free cash outflow in the region of £2bn in 2021. This is money that is going out of the business that its management team will need to find from somewhere. In the same update, it did mention its £9bn liquidity, which is a good sign in my opinion. This should help with the cash outflow mentioned. The Rolls-Royce share price could benefit in the future if ambitions are achieved. It believes it can generate over £700m of free cash flow by 2022. This is a projection based on past figures and flying hours of engines. Cash is king and this could put Rolls-Royce in a much better position.  My verdict I believe there is lots of recovery potential linked to the Rolls-Royce share price. The issue I have is that this recovery is linked to Covid-19. I don’t think it can handle another scenario whereby planes are grounded and it faces severe losses. It must be noted that different parts of the world are in different states related to the virus. The US seems to be flourishing from an aviation perspective and is a market Rolls-Royce can capitalise on. Asia is struggling right now with a deadly variant, and there seems to be another lockdown on the horizon over there. I believe the current Rolls-Royce share price is not reflective of its improving stature, and I think it will creep up over the coming months. I class it as a high-risk investment but I think it is priced quite low right now. It could make an interesting recovery play for my portfolio. Right now, I would not invest in Rolls Royce shares but will keep a keen eye on developments.  Away from Rolls Royce, here is a tech stock that recently underwent an IPO that I have examined. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading As the Rolls-Royce share price falls, I’m still buying Will the Rolls-Royce share price recover in the second half of 2021? Why I think I could double my money with the 100p Rolls-Royce share price The Rolls-Royce share price is crashing in April! Should I buy RR today? Does the Rolls-Royce share price make me want to buy in 2021? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: what’s in store in the coming months? appeared first on The Motley Fool UK.
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  32. Rolls Royce? (24/02/2021 - Reddit Stocks)
    Hey everyone. Just wondering what the thoughts on rolls royce are? The pandemic really hit their price hard. Dropped from £10 to just under £1. The beloved British company recently just won a contract in India too. I won't go I to too much details. All details are at your fingertips.   submitted by   /u/TopSeaworthiness7501 [link]   [comments]
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  33. Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded (30/04/2021 - The Motley Fool UK)
    According to new data, easyJet, BP and Rolls-Royce shares have been some of the most popular stocks traded in the UK so far this year. We take a look at this recent activity to find out what traders have been interested in and why these companies have been market movers and shakers. [top_pitch] What do trading figures show about UK shares such as easyJet? Data from Saxo Markets reveals that certain shares were heavily bought and sold in the UK during Q1 this year. The bulk of trading has been in international markets, but this was no surprise. There were some obvious inclusions like GameStop and Tesla in their findings. Although many believe the American stock market is expensive right now, that hasn’t stopped interest from investors. However, only a handful of UK options were included in the top 20 and can be found on the London Stock Exchange (LSE). What UK stocks are people trading? Only three companies on the LSE made into Saxo’s top 20 most-traded shares during Q1. Let’s take a look at who made the cut. 1. Rolls-Royce Holdings Plc shares Just missing out on the top 10 and making it to number 11 was Rolls-Royce. Their shares made up 0.52% of all trades on the platform so far this year. Many know the business as a luxury car-maker. But it is also a big player in building engines for other vehicles like aeroplanes. The company was hard hit by the coronavirus pandemic and some investors saw a bargain opportunity. But all the questions marks around transport and travel has given traders mixed views about the shares. [middle_pitch] 2. easyJet shares Shares in the UK’s top budget airline have had a turbulent time for obvious reasons. There has been a lot of uncertainty around travel. Rules and dates have been changing frequently. As a result, investors have been both hopeful and gloomy about easyJet shares at different times over the last few months. The airline made it to number 14 in the top-traded shares list, accounting for 0.47% of total activity. 3. BP Plc shares Along with the travel industry, energy companies have also had a tough time over the last year. There did appear to be a recent transition where investors were moving away from high-growth tech stocks and into more value and cyclical shares such as BP. This change in sentiment has helped BP progress steadily. After a poor 2020, the company seems to be growing in strength. Recent Q1 profits, partly due to higher oil prices, have investors excited again. BP reached number 16 on the list, making up 0.46% of trades. Can I buy easyJet shares and others in the UK? There is still a lot of uncertainty for a lot of companies and industries. If you look hard enough, buying opportunities can always be found somewhere. Rolls-Royce, BP and easyJet shares are available on most share dealing platforms. If you’re curious about businesses abroad, make sure you have a trading account that provides access to international markets. As we saw with the GameStop saga, just because certain shares are trading heavily doesn’t always mean they are a great investment. Prices can still swing both ways. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Saga share price is up 69%! I still think the stock’s cheap 3 UK reopening stocks I’d buy and look to hold for 10 years ISA investing: this is what I’m doing about the Next share price right now! These UK share prices are soaring! Should I buy these stocks in my ISA in May? State Pension worries? I’m buying UK shares in an ISA to try to retire comfortably The post Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded appeared first on The Motley Fool UK.
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  34. Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded (30/04/2021 - The Motley Fool UK)
    According to new data, easyJet, BP and Rolls-Royce shares have been some of the most popular stocks traded in the UK so far this year. We take a look at this recent activity to find out what traders have been interested in and why these companies have been market movers and shakers. [top_pitch] What do trading figures show about UK shares such as easyJet? Data from Saxo Markets reveals that certain shares were heavily bought and sold in the UK during Q1 this year. The bulk of trading has been in international markets, but this was no surprise. There were some obvious inclusions like GameStop and Tesla in their findings. Although many believe the American stock market is expensive right now, that hasn’t stopped interest from investors. However, only a handful of UK options were included in the top 20 and can be found on the London Stock Exchange (LSE). What UK stocks are people trading? Only three companies on the LSE made into Saxo’s top 20 most-traded shares during Q1. Let’s take a look at who made the cut. 1. Rolls-Royce Holdings Plc shares Just missing out on the top 10 and making it to number 11 was Rolls-Royce. Their shares made up 0.52% of all trades on the platform so far this year. Many know the business as a luxury car-maker. But it is also a big player in building engines for other vehicles like aeroplanes. The company was hard hit by the coronavirus pandemic and some investors saw a bargain opportunity. But all the questions marks around transport and travel has given traders mixed views about the shares. [middle_pitch] 2. easyJet shares Shares in the UK’s top budget airline have had a turbulent time for obvious reasons. There has been a lot of uncertainty around travel. Rules and dates have been changing frequently. As a result, investors have been both hopeful and gloomy about easyJet shares at different times over the last few months. The airline made it to number 14 in the top-traded shares list, accounting for 0.47% of total activity. 3. BP Plc shares Along with the travel industry, energy companies have also had a tough time over the last year. There did appear to be a recent transition where investors were moving away from high-growth tech stocks and into more value and cyclical shares such as BP. This change in sentiment has helped BP progress steadily. After a poor 2020, the company seems to be growing in strength. Recent Q1 profits, partly due to higher oil prices, have investors excited again. BP reached number 16 on the list, making up 0.46% of trades. Can I buy easyJet shares and others in the UK? There is still a lot of uncertainty for a lot of companies and industries. If you look hard enough, buying opportunities can always be found somewhere. Rolls-Royce, BP and easyJet shares are available on most share dealing platforms. If you’re curious about businesses abroad, make sure you have a trading account that provides access to international markets. As we saw with the GameStop saga, just because certain shares are trading heavily doesn’t always mean they are a great investment. Prices can still swing both ways. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Saga share price is up 69%! I still think the stock’s cheap 3 UK reopening stocks I’d buy and look to hold for 10 years ISA investing: this is what I’m doing about the Next share price right now! These UK share prices are soaring! Should I buy these stocks in my ISA in May? State Pension worries? I’m buying UK shares in an ISA to try to retire comfortably The post Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded appeared first on The Motley Fool UK.
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  35. London Markets: British Airways owner IAG drops on cautious outlook (30/07/2021 - Market Watch)
    Shares of British Airways owner International Airlines Group fell as much as 8% on Friday, as investors took a pessimistic position on the group's outlook.
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  36. Should I buy Rolls-Royce shares today? (06/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) is a popular stock at the moment. Last week, RR was the most purchased stock on both Hargreaves Lansdown and AJ Bell Youinvest. Should I buy Rolls-Royce shares for my own portfolio? Let’s take a look at the investment case for the FTSE 100 stock. Rolls-Royce shares: two reasons to be bullish  I can see a few reasons to like Rolls-Royce shares right now. For starters, the stock is a classic ‘reopening’ play. Rolls-Royce generates a large proportion of its revenues from the servicing of jet engines. So the company should benefit as the world reopens and the travel industry picks up. Recently, it said it’s positioned well for the rebound in international air travel. It’s worth noting that in June, analysts at Jefferies listed Rolls-Royce as one of their top picks for the ‘post-pandemic growth cycle’. With economic activity picking up, Jefferies expects some companies to embark on a period of bonanza, and Rolls-Royce is one of them. And Jefferies isn’t the only brokerage that likes Rolls-Royce shares at present. Recently, Berenberg listed the stock as a ‘buy,’ saying that significant restructuring across the aerospace sector driven by the pandemic will create opportunities for investors. “Despite the delayed recovery in air traffic, demand signals are firmly positive,” its analysts wrote in a research note. Another reason to like Rolls-Royce is that it’s working hard to become a more ‘sustainable’ company. Last month, the company outlined plans to reach net zero emissions by 2050 by investing more in decarbonising technologies and, in the short term, using more sustainable aviation fuel. To ensure it reaches that target, the company plans to lift its research and development spending on low carbon and net zero technologies to 75% of its total budget by 2025, from around 50% now. Meanwhile, on 30 June, Rolls-Royce announced it will be partnering with oil giant Shell to work on the development of sustainable aviation fuel, in line with both their plans for net zero emissions by 2050. The pair signed a memorandum of understanding (MoU) which Rolls-Royce said would help with plans to certify 100% sustainable aviation fuel (SAF) for use in planes. It’s also worth pointing out that Rolls-Royce appears to be progressing with its high-performance electric aeroplane. The company recently said we can expect to see the first flight in the coming weeks. Is RR a good long-term investment? I do have one big concern about Rolls-Royce shares however, and that’s the company profitability track record. It was having problems with its profitability well before Covid-19. In 2016, for example, it generated a net loss of £4bn. What stands out to me is that Rolls-Royce’s five-year average return on capital employed (ROCE) figure is -3%. That’s very poor. History shows companies that generate low returns on capital are generally not good long-term investments. Rolls-Royce shares: should I buy? I think Rolls-Royce shares could have some upside in the short term as the world reopens. However, as a long-term investor, I’m looking for more than short-term gains. Given its historically low ROCE, I’m not convinced RR is a good stock to own for the long term. So I’m going to leave the shares alone for now. I think there are better stocks to buy. The post Should I buy Rolls-Royce shares today? appeared first on The Motley Fool UK. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Where will the Rolls-Royce share price go in July and beyond? Rolls-Royce shares are below 100p. Should I buy? The Rolls-Royce share price: 3 things that could give it a boost Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? Top British stocks for July Edward Sheldon owns shares of Hargreaves Lansdown. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  37. The Rolls-Royce share price has fallen. Is now the time to buy? (10/05/2021 - The Motley Fool UK)
    Shares in Rolls-Royce (LSE: RR) have fallen more than 20% from their high last month. Over the past year, they have dropped dramatically and struggled to recover from March 2020 when the pandemic began, with the Rolls-Royce share price falling as low as 64.86p at the end of October. There has been a strong recovery since then, with the share price back to 109p at the time of writing. Below are some of the reasons why the share price might be down. Reopening prospects mixed Recently, Rolls-Royce shares have tended to do well when there has been more optimism about the world opening up and return to international travel as we used to know it. A large part of the company’s business relies on there being international travel due to its aircraft engine business. The easing of restrictions in the UK has so far been a success and the vaccine rollout is also on track, which is allowing optimism over being able to travel abroad again this summer. However, countries such as India and Kenya have seen a dramatic rise in Covid-19 cases, which may make it harder to travel to these countries in the short term. In my opinion, I expect that travel reopening may not be perfect in the short term but I am optimistic that this form of cash flow for Rolls-Royce should be resuming sooner rather than later. Lack of news Another issue behind the share price of Rolls-Royce is likely to be the fact there has been no important news from the company recently. The lack of news is a possible factor in the share price with no catalyst to get shareholders excited about.  Underlying investment case hasn’t changed From a month ago there has been no real change in the prospects of Rolls-Royce, with the future climate looking the same and global travel still expected to improve and get back to normal. I am bullish on Rolls-Royce and see the drop in the last month as a buying opportunity for investors. With the world starting to open up – and it will do further in the coming months – this is only going to benefit Rolls-Royce. Of course in the short term, things may change but the long term should see the shares in the company increase in value. I am seeing the current price as a great buying opportunity and a great discount to investors. The risk to the share price Many investors will remain wary of Rolls-Royce at the moment and for good reason. The reason for this is the lack of control the company has in its own success at the moment. The success of the company going forward is heavily reliant on the pandemic and restrictions across the UK and the world easing. However, in the long term, the Rolls-Royce share price should recover its recent losses, which is why I am very bullish on the company. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Hargreaves Lansdown investors are buying Rolls-Royce shares. Should I buy too? How much is the Rolls-Royce share price really worth? Will the Rolls-Royce share price fly this summer holiday season? Can the Rolls-Royce share price bounce back? Will the Rolls-Royce share price soar in May? Ed Jones owns shares in Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price has fallen. Is now the time to buy? appeared first on The Motley Fool UK.
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  38. Should I buy Tirupati Graphite shares? (15/06/2021 - The Motley Fool UK)
    Tirupati Graphite (LSE:TGR) is a green economy business with potential upside. It’s a flake graphite company manufacturing speciality graphite and graphene. And Tirupati has recently developed a ground-breaking graphene-aluminium (Al-Gr) composite. This could be a game-changer in replacing copper in advancing technology. A revolutionary product Tirupati Graphite mines and processes natural flake graphite in Madagascar and conducts hi-tech graphite processing in India. Its operation in India is focusing on manufacturing zero-chemical graphene. Best of all, Al-Gr Composite is a scalable solution that could revolutionise manufacturing. The company already makes money mining for graphite in Madagascar, but this new Al-Gr Composite invention has investors really excited. That’s because Tirupati has reportedly been in talks with FTSE 100 company Rolls-Royce (LSE:RR). Tirupati’s Al-Gr Composite could replace the copper in thermal, power, and propulsion systems, ensuring lighter-weight aircraft. Less weight leads to increased fuel efficiency, which saves the company money. So, it could potentially appeal to many aircraft manufacturers. Reducing weight in tech is a common goal, and if workable, this Al-Gr Composite could find demand coming from many industries desperate to reduce their carbon footprint. For instance, electric vehicles, aerospace, space, shipping, and satellite technologies. In fact, pretty much anything that uses copper wires and cables in motors. The Al-Gr Composite is also more efficient at increasing conductivity, both thermal and electrical. Therefore, it can be used in heat exchangers, heat sinks, and even solar water heaters. In fact, Shishir Poddar, CEO of Tirupati Graphite, referenced a recent McKinsey report stating graphene can make batteries and solar cells significantly more efficient. Rising share price Tirupati Graphite launched on the London Stock Exchange via IPO in December. Since then, its share price has risen 152%. It now has a £113m market cap. However, there’s no doubt this share carries risk. It’s new to the public markets, it operates in emerging market jurisdictions, and it’s making a product that’s yet to prove itself. Nevertheless, the company has high hopes with its sights set on increasing its Madagascan capacity to 30,000 tpa by Q1 2022, up from 3,000 tpa at IPO. The Tirupati share price has already risen sharply in the past week, so it may be in for extreme volatility in the weeks ahead. However, as a speculative investment, I’m tempted to get on board and add Tirupati Graphite shares to my Stocks and Shares ISA. I think anything offering a clear solution in the shift to a green economy shows massive potential and makes for an attractive investment opportunity. Tirupati in talks with Rolls-Royce Another key question now is: does this news make Rolls-Royce any more attractive as a long-term investment? Rolls-Royce has racked up an eye-watering level of debt since the pandemic hit. Its market cap is approaching £9bn while its debt is almost £7.5bn. Therefore, I think any way it can find to reduce costs will be warmly welcomed. The Rolls-Royce share price has been extremely volatile, and its future uncertain. That still stands, although its outlook very much depends on economies reopening and flights resuming. I think Rolls-Royce will survive, and it has been streamlining in recent months. If it can stay on target to reduce costs and resume generating revenue, its share price could soar again. As a result, I’m tempted to gradually buy shares in Rolls-Royce with a long time horizon in mind. The post Should I buy Tirupati Graphite shares? appeared first on The Motley Fool UK. For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Why did the Tirupati Graphite (TGR) share price explode last week? Will the Rolls-Royce share price ever get back to 200p? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? 2 UK shares to buy and hold for the long term Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  39. This is what I’m doing about the Rolls-Royce share price (07/07/2021 - The Motley Fool UK)
    It’s perhaps no surprise to see the Rolls-Royce Holdings (LSE: RR) share price still struggling for liftoff. The FTSE 100 company has failed to rally like many other cyclical UK shares as the continuing Covid-19 emergency keeps travel restrictions in place in many regions. Rolls-Royce’s share price has advanced just 8% over the past 12 months. That’s significantly below the 15% rise the broader FTSE 100 has enjoyed in that time. But are UK share investors missing a trick by not buying in? Why Rolls-Royce’s share price could fly There are several reasons why Rolls-Royce could soar in the second half of 2021. These include: #1: A fresh decline in Covid-19 cases as vaccine programmes continue. This would lead to airlines taking to the skies en masse again, allowing Rolls-Royce’s engines to start clocking up air miles again and brightening the long-term demand outlook for its hardware. Yesterday, Germany loosened curbs for travellers from several countries and it’s thought other European countries could follow its lead in the days and weeks ahead. #2: Divestment activity continues. A banged-up balance sheet is one of the reasons why Rolls-Royce’s share price has failed to ignite. The engineer has previously said it expects net debt to balloon to £4bn by the end of this year. So it has to get busy with asset sales to repair investor confidence. Happily, the business said it was “progressing well on our disposal programme” when it last updated the market in May. #3: Cost-cutting actions impress. News on disposals will be keenly watched when Rolls-Royce releases half-year financials on 5 August. So will details on the FTSE 100 firm’s planned £1.3bn worth of annualised cost savings (“good progress” has been made with cost reductions, Rolls-Royce recently said). Any positive news on either front could drive the company’s share price much higher. However… All that said, there are clearly big risks to Rolls-Royce’s share price too. Perhaps the most obvious is the ongoing public health emergency and what this will mean for the reopening of the aviation industry. Despite vaccine rollouts, the number of global coronavirus cases is again rising. The emergence of the Delta variant is responsible for this most recent uptick. And the outbreak of other variants since this particular edition became widespread is casting concern for the airlines — and by extension Rolls-Royce — for further down the line. This is, of course, particularly dangerous for the FTSE 100 firm, given its enormous debt pile. Sure, August’s financials might show encouraging progress on asset sales and cost-cutting. But this will likely count for little if signs emerge that travel barriers are set to remain in place, or possibly even tighten. The Rolls-Royce share price doesn’t look that cheap, in my opinion, given these dangers. The firm is expected to bounce back into profit next year. But, at a current price of 102p, it commands a high P/E ratio above 30 times for 2022. I’m simply not prepared to risk my hard-earned cash on such an expensive and high-risk UK share. The post This is what I’m doing about the Rolls-Royce share price appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Rolls-Royce shares today? Where will the Rolls-Royce share price go in July and beyond? Rolls-Royce shares are below 100p. Should I buy? The Rolls-Royce share price: 3 things that could give it a boost Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  40. These were the 5 best shares to buy 6 months ago, before the FTSE 100 soared! (30/03/2021 - The Motley Fool UK)
    Please cast your mind back to the grim days of autumn 2020. This was before news of several effective Covid-19 vaccines gave us hope, fuelling sharply rising share prices in November. After leaping from Meltdown Monday (23 March 2020) to early June, the FTSE 100 index then dived as Covid-19 infections surged. By 30 October, the FTSE 100 had slumped to a second-half closing low. But which were the best shares to buy from the FTSE 100 six months ago, before the light at the end of the coronavirus tunnel? The FTSE 100 soars on vaccine news On 30 October 2020, the FTSE 100 closed at 5,577.30 points, having lost over 900 points (14%) since 5 June. Today, the Footsie stands at 6,737.22. That’s an increase of almost 1,160 points in five months, up more than a fifth (20.8%). In other words, Halloween horrors have been replaced by happier times since. But what if I had a time machine and could go back six months, before the stock market bottomed out? Which would have been the best shares to buy from the FTSE 100 (my hunting ground for large-cap value shares)? Winners and losers since 30 September I’ll go back six months to 30 September 2020 (exactly one month before the autumn market low). Which would have been the best shares to buy then and hold until today? Of the 101 shares in the FTSE 100, 77 of these stocks have risen over the past six months. Gains among these 77 winners range from a tiny 0.5% to a whopping 137.7%. Across all 77 gainers, the average rise is a healthy 33.2% (almost exactly a third). Among the 24 FTSE 100 losers over six months, losses range from a teeny 0.1% to an unpleasant 25.4%. The average loss across these 24 fallers was 11.8%. Now let’s find out the five best shares to buy from the FTSE 100 six months ago. The FTSE 100’s best shares to buy As is so often the case, the most beaten-down stocks have enjoyed the biggest rebounds over the past half-year. From the FTSE 100, these were the five best shares to buy on 30 September 2020 and own until today: Rolls-Royce Holdings (aero-engine maker) +137.7% International Consolidated Airlines Group (airlines) +102.3% Barclays (banking) +84.8% NatWest Group (banking) +78.9% Glencore (mining and commodity trading) +76.9% The best shares to buy six months ago were so-called ‘recovery plays’. These are companies seen as most likely to benefit from a post-Covid-19 recovery. There are three simple themes here. First, Rolls-Royce and ICAG were absolutely hammered in 2020, as airmiles flown collapsed to levels not seen in many a decade. But a vaccinated world will be eager to resume international air travel. Second, as two of the UK’s leading lenders to businesses and consumers, Barclays and NatWest took a savage beating before bouncing back. Third, Glencore‘s share price has surged as commodity prices have soared on hopes of a strong economic recovery. To be honest, with RR and ICAG facing an existential crisis, I would not have bought these risky shares six months ago. As a veteran value investor, these stocks were too risky for me. However, I repeatedly wrote about Barclays and NatWest last autumn, identifying both banks as being value plays. Of course, I’m delighted with their performance since October 2020. As for the best shares to buy for the next six months, I don’t have a crystal ball, so you tell me! The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading 6 days to go! 3 FTSE 100 shares I’d buy before the ISA deadline The National Express share price is rising: should I buy now? How did Elon Musk make his money? Stock market crash: this huge red warning light doesn’t frighten me! Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post These were the 5 best shares to buy 6 months ago, before the FTSE 100 soared! appeared first on The Motley Fool UK.
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  41. The Rolls-Royce share price is falling. Is the stock one to buy? (14/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price is around 91p as I write. But it’s been slipping since late June and today’s weakness extends the move. For context, the price knocked on the door of 130p as recently as mid-March. And a year ago it was around 89p. The outlook drives the Rolls-Royce share price Of course, price alone doesn’t tell the whole story. The Covid-19 pandemic caused massive upheavals in the operations of the business and threatened the company’s very survival. And mitigating actions taken by the directors included a large refinancing and restructuring programme. The past 18 months or so have been painful for the company and its shareholders. But, to me, the weak share price today looks like it’s down to one thing — the resurgence of Covid-19. Even the UK government has changed its tune regarding so-called ‘freedom day’ due on 19 July in England. To my ears, the government’s messaging now urges far more caution than it did earlier. So investors are probably right to be wary about reopening stocks right now. For example, I heard Boris Johnson say no action is being ruled out to fight the pandemic by the UK government. If restrictions do end up returning, full business recovery for Rolls-Royce and other companies could move further away. Waiting for a recovery in engine flying hours Other stocks are suffering as well. Although that’s no consolation for Rolls-Royce shareholders. But weak shares include names such as Stagecoach, Go-Ahead, International Consolidated Airlines, and Saga among many more. However, the longer-term outlook for the Rolls-Royce business looks quite promising. Much of the firm’s trade relies on planes being in the air to generate engine sales and demand for maintenance. And on 13 May the company said engine flying hours were 40% of 2019 levels in the first four months of 2021. That outcome was driven by cargo flights and key routes remaining open. But Rolls-Royce needs a return to big-scale airline passenger traffic to make a significant difference to the business. And that outcome is very much dependant on what happens next with the pandemic. But the directors pointed to the rollout of vaccination programmes and increased testing as encouraging signs. Meanwhile, the outlook for the firm’s Power Systems and Defence operations is positive. Those areas have been less affected by the pandemic and are recovering well from the setback. Expectations for positive cash flow In May the directors thought the business would “turn free cash flow positive at some point during the second half of 2021.” However, they also said their guidance depends on the timing of the recovery in engine flying hours. It seems rational for the Rolls-Royce share price to drift lower as cases of Covid-19 climb. But at some point, surely, life will resume without restrictions. Meanwhile, should I buy the stock? It’s very hard to put a value on Rolls-Royce. The extent of the eventual recovery in engine flying hours is unknown. So, I’m assuming the stock market is correct with its assessment of the company’s immediate prospects and that the share price is where it should be. So, for the time being, I’m avoiding this one. However, I could be wrong in my assessment and the stock could rise fast if news improves regarding Covid-19 infection rates. We’ll hear more from Rolls-Royce with an update scheduled for 5 August. The post The Rolls-Royce share price is falling. Is the stock one to buy? appeared first on The Motley Fool UK. Meanwhile, this one has caught my gaze… Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  42. The Rolls-Royce share price is crashing in April! Should I buy RR today? (21/04/2021 - The Motley Fool UK)
    As a value investor, I love bottom fishing, whereby I trawl through crashed share prices looking for ‘fallen angels’. These are otherwise sound companies whose shares have steeply declined. In March 2020’s market meltdown, dozens of FTSE 100 companies were in this category. So my wife and I invested all of our cash into shares a year ago, with spectacular returns since. But while bargain-hunting in the Footsie today, I spotted an unfamiliar face: Rolls-Royce Holdings (LSE: RR.). Alas, the Rolls-Royce share price has had a bad week (and month). The Rolls-Royce share price crashed in 2020 At its five-year peak, the Rolls-Royce share price topped 375p in August 2018. However, it had a tough 2019, closing the year at 234.45p. Then Covid-19 shut down air travel worldwide and air miles flown collapsed by at least 80%. This destroyed the share prices of airlines and their suppliers, including RR. Thus, the Rolls-Royce share price had a bad time last year. At the low of 2 October 2020, RR shares closed at a mere 38.98p. That’s a loss of over 195p, with the shares crashing by more than 80%. Rolls-Royce rockets from October 2020 Happily, over the past seven months, Rolls shares have soared. From early October, the Rolls-Royce share price staged an almighty comeback. With news arriving after Halloween of several Covid-19 vaccines, RR shares boomed. On 3 December, they closed at 134.90p (up almost 96p), for a whopping 246% gain in just two months. Clever or lucky buyers of RR shares at the October low would then be sitting on almost 3.5 times their money. Wow. Since December, the Rolls-Royce share price has eased back, but rose to close at 127.20p on 17 March. Since then, it’s been on a bit of a downer and, recently, the Rolls-Royce share price has dropped significantly. Over one week, it is down 7.8%, putting it at #99 in the FTSE 100. Over one month, it has dived 15.2%, the worst performance in the Footsie. Ouch. Would I buy Rolls-Royce shares at under £1? This decline brings to mind one of my favourite Ben Graham quotes. The ‘father of value investing’ advised, “A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price”. Do I like Rolls-Royce Holdings as a business? You bet. As a multinational aerospace and defence company around since 1904, it has a storied history. It designs, manufactures, and sells world-class power systems for aviation and other industries. But the collapse in air travel clobbered the Rolls-Royce share price. As I write, it trades at 99.9p on Wednesday afternoon. I would buy big with the Rolls-Royce share price below £1, if not for one worry. In order to survive 2020, RR raised huge sums in bonds and loans, thus bashing its balance sheet. RR’s net debt (including leases) of £3.6bn is approaching half of its market value of £8.4bn. But the company has £3.5bn in cash and £5.5bn in undrawn credit to ride out future storms. Although this debt mountain scares me, I lack any potential growth stocks in my family portfolio. On balance, I’d take a small punt today on Rolls-Royce getting back on track from 2022 onwards! FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Does the Rolls-Royce share price make me want to buy in 2021? 2 ways the Rolls-Royce share price could benefit from the reopening economy Is the Rolls-Royce share price undervalued? Is reopening important for the Rolls-Royce share price? Should I invest in Rolls-Royce or Aston Martin shares right now? Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is crashing in April! Should I buy RR today? appeared first on The Motley Fool UK.
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  43. Should I buy IAG shares today? (07/06/2021 - The Motley Fool UK)
    British Airways owner International Consolidated Airlines (LSE: IAG) has been a popular stock this year. On my investment platform, Hargreaves Lansdown, IAG has consistently been one of the most purchased UK shares in 2021. Should I buy IAG shares for my own portfolio? Let’s take a look at the investment case. IAG shares: should I buy? I can see why investors have been piling into IAG shares recently. For a start, IAG is a classic reopening stock. With Covid-19 vaccines being rolled out rapidly, activity in the travel industry is now picking up. There’s a considerable amount of pent-up demand to fly. After a very challenging 15 months or so, the outlook for IAG is definitely improving. City analysts currently expect IAG’s revenue to rise about 33% this year to €10.5bn. Secondly, IAG’s share price is still well below where it was before Covid-19. Back in February last year, the share price was above 400p. Today, however, it is still under 200p. I have no doubt that the depressed share price is attracting value hunters. The risks Digging deeper into the investment case, however, there are a few risks that concern me. The first is the enormous amount of uncertainty that airlines face due to the constantly-changing travel rules. The UK’s decision to move Portugal to its amber list last week is a good example of the ever-changing rules. This environment is a nightmare for airline operators such as IAG. While there is so much uncertainty, bookings are likely to remain depressed. For IAG, it’s a concern that both Spain and the US are on the amber list as these are two of its biggest markets. Speaking of bookings, IAG said in its recent first-quarter results that for the second quarter of the year, it is expecting capacity to be just 25% of what it was in 2019. This suggests that a full recovery is a long way off. It’s worth noting that it believes corporate bookings are likely to remain below 2019 for years. Another concern is that fuel prices are rising. Recently, the price of Brent crude oil rose above $70. Airlines typically hedge their fuel costs so they are not exposed to rising fuel prices in the short term. Still, higher fuel costs are the last thing airlines need while they are operating at such a low capacity. Fuel costs are a large part of an airline’s expenses, meaning that higher oil prices can greatly impact profits. Finally, I continue to have concerns about the company’s balance sheet. IAG recently advised that at the end of March, it had net debt of €11.5bn, up 18.5% from last year. Since then, it has launched an €800m convertible bond. This substantial pile of debt adds significant risk to the investment case. With air travel likely to remain depressed for at least a few years while Covid-19 is lingering, it could be hard for it to generate enough profit to pay the interest on its debt. IAG shares: my move now Weighing everything up, I think the risks outweigh the potential rewards here. All things considered, I think there are much better stocks I could buy today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Cheap UK stocks: should I be buying airline shares ahead of the summer? Should I Invest in IAG shares right now? The IAG share price has crashed 7% today! Here’s why Would I buy these 2 FTSE 100 reopening stocks now? Edward Sheldon owns shares in Hargreaves Lansdown. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy IAG shares today? appeared first on The Motley Fool UK.
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  44. The Rolls-Royce share price is rising. Should I buy now? (03/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares are popular right now. Last week, Rolls-Royce was the fifth most purchased stock on Hargreaves Lansdown. Meanwhile, on Trading 212, RR is currently the 7th most owned stock overall. This interest in the stock appears to be pushing its share price up. Is this a share I should buy for my own portfolio? Let’s take a look at the investment case. Rolls-Royce shares: the bull case I can see why Rolls-Royce shares are popular at the moment. For starters, the share price has been hit hard due to Covid-19 disruption. Over the last year, RR is down about 50%. As a result, the company has a market cap of just £2.2bn right now. If the prospects for the airline industry improve (which I think they will eventually), Rolls-Royce shares could rise. That’s because the company generates a substantial proportion of its revenues from the manufacturing and servicing of engines for the commercial aviation industry. Secondly, there’s been a lot of talk this year about all-electric planes and ‘air taxis’ and some investors believe that Rolls-Royce could be a big player in these areas. Recently, Rolls-Royce has been developing a high-performance electric aeroplane named Spirit of Innovation. This has completed its first runway taxiing tests, ahead of a first flight, which is expected to take place this spring. “This system and the capabilities being developed will help position Rolls-Royce as a technology leader offering power systems to the urban air mobility market,” said Rob Watson, director of Rolls-Royce Electrical, after the tests. This development certainly looks interesting. Going forward, air mobility could be a genuine source of growth for Rolls-Royce. Is RR a good fit for my portfolio? Having said all that, I’m not convinced that Rolls-Royce shares are a great fit for my portfolio at the moment. I like to invest in companies that are consistently profitable, cash generative, financially sound, and that generate a high return on capital employed. In other words, I like high-quality businesses. Companies like Apple, Microsoft, and dotDigital are some good examples. Companies that have these kinds of attributes tend to be good investments over time. Looking at Roll-Royce’s financial track record, it’s not so impressive. In recent years, the company has posted big losses on a number of occasions (well before Covid-19). And even when it was profitable, return on capital employed was not that high. Meanwhile, Stockopedia gives Rolls-Royce an Altman Z1 score of -0.19 which indicates a “serious risk of financial distress” within the next two years. Overall, Rolls-Royce does not appear to me to be a high-quality business. Better stocks to buy In conclusion, I do think Rolls-Royce shares have the potential to keep rising in the short term. If the airline industry picks up, the company should benefit. However, Rolls-Royce is not the kind of stock I’d buy for my portfolio. I think there are much better stocks I could buy right now that are more suited to my goals (generating strong returns over the long term) and risk tolerance. Like this one…. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will the Rolls-Royce share price recover in 2021? Will the Rolls-Royce share price reach 150p? Rolls-Royce share price: what I’d do given the upcoming full-year result Rolls-Royce shares: is it the right time to buy? The Rolls-Royce share price: have we seen the bottom? Edward Sheldon owns shares in Apple, Microsoft, dotDigital, and Hargreaves Lansdown. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Apple and Microsoft. The Motley Fool UK has recommended dotDigital Group and Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is rising. Should I buy now? appeared first on The Motley Fool UK.
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  45. As the Rolls-Royce share price falls, I’m still buying (24/04/2021 - The Motley Fool UK)
    Since hitting a post-Covid-crash high of 135p in December of last year, the Roll-Royce (LSE: RR) share price has been under pressure. The stock has fallen around 25% since it reached this level. The sell-off accelerated last week, with the stock falling around 6%. Over the past 12 months as a whole, the Rolls-Royce share price has fallen 8%. It’s down 56% over the past five years.  However, I think the recent declines in the share price could be an opportunity for long-term investors.  Overcoming challenges  I think the market has got it wrong here. Shares in the aerospace business have been falling in 2021, but the group’s outlook is only improving. Compared to this time last year, Rolls’ outlook is entirely different. The company seems to have pulled through the worst of the crisis, the airline industry is back in the air, and the group has shored up its balance sheet.  Granted, the business still faces some severe headwinds. Its latest trading updated predicted a free cash outflow in the “region of £2bn in 2021.” That’s money flooding out of the business management will have to find from somewhere. The group highlighted its £9bn of liquidity in the same update, which should help it cover the cash outflow. If there’s another more severe coronavirus wave, Rolls will face more losses. It’s unclear if the business could weather another two years of billions of pounds of cash losses. Rolls-Royce share price opportunity  These are the main risks and challenges facing the Rolls-Royce share price. But the company’s long-term potential is encouraging. The corporation believes it can generate £750m of free cash flow by 2022. This projection is “based on 2021 widebody engine flying hours at around 55% of 2019 levels.”  A positive free cash flow would put the business back on a sustainable footing and remove the need for further cash calls.  How likely is it Rolls will meet this target? I think there’s a 50/50 chance. On the one hand, the pandemic is still raging in Asia, and it seems unlikely this will change anytime soon. On the other, over in the US, the aviation business is booming. Some airlines are even hiring new pilots.  As such, it seems to me that the Rolls-Royce share price is a high-risk investment. Yes, the stock has potential, but many risks on the horizon could cause turbulence for the firm.  Nevertheless, it seems clear to me the stock isn’t reflecting the company’s improving fundamentals. As long as there’s no Covid resurgence and the aviation industry continues to recover, I think Rolls’ fundamentals will continue to improve. Therefore, I’d buy the stock for my portfolio today as a recovery play. Although I’d keep the risks surrounding the Rolls-Royce share price in mind and re-evaluate my position if things change.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Will the Rolls-Royce share price recover in the second half of 2021? Why I think I could double my money with the 100p Rolls-Royce share price The Rolls-Royce share price is crashing in April! Should I buy RR today? Does the Rolls-Royce share price make me want to buy in 2021? 2 ways the Rolls-Royce share price could benefit from the reopening economy Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post As the Rolls-Royce share price falls, I’m still buying appeared first on The Motley Fool UK.
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  46. The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? (28/07/2021 - The Motley Fool UK)
    It has been an extremely challenging 18 months for Rolls-Royce (LSE: RR), with the pandemic causing absolute havoc, especially in the civil aerospace division. This has seen the company incur very large losses, and the Rolls-Royce share price even dropped to below 40p at one point. But with the country starting to return to normality, there is some hope that the business can recover. At over 100p, should I therefore be buying this FTSE 100 stock now? The year of 2020 It’s fair to say that the majority of UK companies struggled during 2020. Nonetheless, due to its ties with the aviation sector, Rolls-Royce was one of the biggest strugglers. This was confirmed in the company’s full-year trading update, where it reported a loss of over £3.1bn. Such a large loss included the effects of impairment charges, restructuring costs, and lower revenues. To survive, the firm had to take drastic measures. For instance, at the end of October last year, the company managed to raise £2bn through issuing nearly £6.5bn new shares. Due to the dilution of shares, this caused the Rolls-Royce share price to fall by around 64%. It also limits the likelihood of the share price returning to its pre-pandemic prices, unless the company is in the financial position to buy back some of these shares. There is no possibility of this happening for a long time. On the flipside, this secondary offering of shares, alongside debt issuances, did manage to strengthen liquidity to £9bn. This included £3.5bn in cash and £5.5bn in undrawn credit facilities. The company also hopes to reach £1.3bn in annual cost savings by the end of 2022. All of this means that I am confident the company will survive, and it reduces the risk of investing. This is one reason to buy shares as a recovery stock. What’s next? Of course, with international flights still far below 2019 levels, Rolls-Royce faces a number of challenges. The high number of global coronavirus cases at the moment therefore remains an extremely pressing issue. Despite this, the company still hopes to start generating cash again at some point during the second half of this year. It is also important to recognise that the Rolls-Royce business has more to it than just its civil aerospace division. Indeed, last year, its defence sector accounted for 29% of the firm’s revenues. It also had underlying operating profits of £448m. As such, I believe this sector could have a positive effect on the upcoming half-year results, which may see the Rolls-Royce share price gain further momentum. Can the Rolls-Royce share price rise further? I feel that the Rolls-Royce share price is still in for a very turbulent 2021. Clearly, the civil aerospace division will carry on struggling, and losses look set to continue for the foreseeable future. There is also no proposition of any shareholder returns until at least 2023. As such, while I feel there is some upside potential, and bankruptcy does not seem likely, there are still too many problems with the company for me to invest. The post The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading 2 FTSE 100 shares I’m buying after ‘freedom day’ The Rolls-Royce share price could be on the road to recovery I’d avoid the Rolls-Royce share price and buy this FTSE 100 stock instead Can the Rolls-Royce share price hold out until the end of 2021? 5 reasons to buy Rolls-Royce shares – and why I’m not Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  47. Rolls-Royce shares: Norway blocks its sale. Should I be worried? (26/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares are in the spotlight again. The engine maker recently released its full-year results, which revealed it made a loss in 2020. I’ve commented on them previously, but I wasn’t surprised by the news. Especially given how the pandemic hit the travel industry last year. The stock is now in the limelight after the sale of a business was blocked by the Norwegian government. But I’m not worried about this and I’d still buy Rolls-Royce shares in my portfolio. Here’s why. Blocked sale Disposing businesses is part of Rolls-Royce’s recovery plan. It intends to raise at least £2bn from the sale of its assets by 2022. But the disposal strategy has faced a hurdle. Rolls-Royce’s sale of Bergen Engines to the Russian company TMH Group has been halted by the Norwegian government. The reasons were based on national security grounds. The Norwegian government said that “the technology possessed by Bergen Engines, and the engines they produce, would have been of significant military strategic interest to Russia, and would have boosted Russian military capabilities”. So what does this mean for Rolls-Royce shares now? I’m not too concerned about the news. Of course, it puts a spanner in the works for Rolls-Royce but this was only a small sale. The Bergen disposal would have raise approximately £130m. This is a drop in the ocean compared to the bigger £2bn total Rolls-Royce expects to raised from the sale of its assets. The shares took a hit on the news, but I think this was a reality check that the FTSE 100 firm isn’t out of the woods yet. It’s worth noting that Rolls-Royce has a plan but it won’t be smooth sailing. Rolls-Royce released a statement in response to the blocked sale. For now the disposal process has been paused but the company is keen to sell the business. Rolls-Royce is now working with the Norwegian government to “swiftly find another option”. Bright side I don’t think things are all bad for the engine maker. For now it has enough liquidity to weather the coronavirus storm. It has raised money from a rights issue and there are sufficient credit facilities in place. According to its 2020 full-year results, approximately 30% of Rolls-Royce’s revenue comes from its defence division, which includes contracts with the UK and US governments. This should provide the company with some revenue stability and visibility. The defence division should remain robust especially after it has 90% order cover for 2021. I like that Rolls-Royce has high barriers to entry and a strong brand, which should hold the business in good stead. The long road to recovery I don’t underestimate that Rolls-Royce has a long journey ahead to recovery. The pandemic hit its main business of producing and servicing aircraft engines very hard. Rolls-Royce shares are highly dependent on the vaccine roll-out as well the easing of lockdown restrictions. The stock is likely to be sensitive to delays in returning to pre-coronavirus normality. For now I’d buy the stock in my portfolio. I reckon the company has done enough to survive and the worst it behind it. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Rolls-Royce shares for my portfolio today? Will the Rolls-Royce share price reach 150p this year? Can management use technology to boost the Rolls-Royce share price? Can the Rolls-Royce share price surge if it overcomes this huge trend? Rolls-Royce shares are nudging higher. Should I buy now? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce shares: Norway blocks its sale. Should I be worried? appeared first on The Motley Fool UK.
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  48. FTSE 100 stock watch: will the Rolls-Royce share price recover? (13/03/2021 - The Motley Fool UK)
    FTSE 100 aerospace company Rolls-Royce Holdings (LSE:RR) experienced a £4bn loss in 2020. But reassuringly it has told the BBC “the worst is behind us“. So, does that mean it’s onwards and upwards for the Rolls-Royce share price? The £4bn loss is a particularly hefty kick in the teeth after posting a £583m profit the year before. But considering the impact of the Covid crisis on the business, I’m surprised the Rolls-Royce share price hasn’t suffered more. It’s down 38% in a year, but up 25% in a month. Loyal shareholders seem to keep the long term in mind, although the price is subject to considerable volatility. Rolls-Royce revenue risks Unfortunately, Rolls-Royce has never faced such revenue risks as the pandemic has brought to its door. It’s already laid off 7,000 employees and could cut another 2,000 in the coming months. Plus it expects a further £2bn cash burn in restructuring costs. The main risk to its income is air travel. It profits from servicing aircraft engines, unfortunately the pandemic stopped flying activity and slashed revenues. Rolls-Royce has already issued shares to raise additional cash and plans to dispose of assets too. However, Norway recently postponed the €150m sale of its Norwegian division on security grounds. Its defence operations enjoyed an 8% rise in 2020 profits, but sadly accounted for under 30% of the group’s total revenue. So that gain didn’t do much to make up for the extensive losses in its civil aerospace arm. But with vaccine uptake throughout the world, the signs of air travel recovery are getting stronger. Yet that’s still dependent on international agreements, passenger testing, and vaccine success. There’s also the worry that new virus variants could upend the vaccine success story. Long-term outlook The UK economy shrank less than expected in January, which is a reassuring sign. And PwC says 2021 will be a year of business reinvention. That’s something Rolls-Royce must do if it’s to have a long-term chance of survival. It’s certainly a focus for the group and it recently signed a deal with Scandinavian airline Wideroe, for a new electric aircraft to fly regional routes. As well as maintaining its existing customer base, it needs to spend on greener forms of propulsion, including batteries and hydrogen. That won’t come cheap. Rolls-Royce is a prestigious company with an impressive legacy and a lot to like. I’ll be surprised if it goes out of business, but I think the next few years will be tough. Is Rolls-Royce paying a dividend? Rolls-Royce isn’t paying a dividend and given the circumstances it finds itself in, I think that’s wise. The company used to pay a dividend, and I’m sure that will resume once it’s back in a position of strength. But that could be several years from now. It has £9bn of liquidity at its disposal, which should last two years. If it can weather the storm, it should emerge a much stronger, streamlined company, with a higher share price. But I think it will take years to achieve and it’s certainly a risky investment today. The company only makes significant income if planes are flying. This is expected to increase this year, but if it makes half what it did pre-pandemic, that will be impressive. Personally though, I won’t be adding Rolls-Royce shares to my Stocks and Shares ISA today. For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? Rolls-Royce share price: can it go back up to 200p? Why Rolls-Royce shares nudged higher today Can the Rolls-Royce share price keep climbing after today’s results? Rolls-Royce earnings: here’s what will help me decide to buy more shares Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post FTSE 100 stock watch: will the Rolls-Royce share price recover? appeared first on The Motley Fool UK.
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  49. Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today (04/03/2021 - The Motley Fool UK)
    A one-year time frame is a good benchmark when I look at an investment return. It doesn’t mean I’ll sell after one year, but enough time has passed for me to see the general trend of the stock. Judging a company over a shorter time might lead me to make the wrong call on the stock. One example is Rolls-Royce (LSE:RR) shares. One-year performance  A year ago, Rolls-Royce shares were trading at 208p. As I’m writing, the share price is 115p. From this I can clearly see that a £1,000 investment is worth less now than it previously was. In numerical terms, it’s down 45%, so my £1,000 would be worth approximately £550. As a rough barometer, the FTSE 100 index over this period is down as well. However, it’s down less than 3%, so Rolls-Royce shares are underperforming the benchmark. This move lower doesn’t appear to be a one-off. If I look back two years, the share price was at 305p. There have clearly been fundamental drivers that have caused the value of the company to decrease over the past few years.  One of these has been the “tangible and sustainable cultural and performance shift” that was reported in the 2019 results. Rolls-Royce had focused on repositioning the business in several key areas. This meant cutting headcount (seen in both 2019 and 2020) as well as trying to reduce net debt (gross debt reduced by £1.1bn in 2019). This understandably meant Rolls-Royce shares took a knock, as trying to transform a mature company will hurt in the short run before investors see the benefits. Another hit to Rolls-Royce shares came due to Covid-19 last year. The impact was felt in most industries, but particularly in the aerospace sector. Demand for maintenance of engines and new engine sales in the civil aerospace area dried up. Although demand in other areas (such as defence) held firm, Covid-19 definitely took its toll. Should I buy Rolls-Royce shares now? I could look at Rolls-Royce shares and think that the downward trend might continue. However, there comes a point when the share price simply can’t fall lower unless the business is looking like it will go bust.  In its latest trading update, Rolls-Royce confirmed it has £9bn of liquidity available. So I don’t think the business is remotely close to going under in the short term. Therefore, I do see Rolls-Royce shares as an opportunity for me to buy in. But before I do, I’d like to see the full-year 2020 results that are due out on March 11. Besides any major disaster, I’ll buy after results come out. I imagine the commentary with the results will stress caution, but could look ahead with optimism. Based on the vaccination numbers, flying hours should increase in H2, which indirectly will benefit Rolls-Royce. Ultimately, I don’t see air traffic (either civil or otherwise) remaining depressed in the long term. So this should gradually mean a return to sustainable profits for the business. The issue here though is simply the risk of the unknown. If more virus mutations surface or lockdowns are prolonged, Rolls-Royce shares will likely continue to trade lower. However, I can’t predict this, and have to accept this as a risk. But with this in mind, I’d still buy the stock. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Rolls-Royce share price is rising. Should I buy now? Will the Rolls-Royce share price recover in 2021? Will the Rolls-Royce share price reach 150p? Rolls-Royce share price: what I’d do given the upcoming full-year result Rolls-Royce shares: is it the right time to buy? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today appeared first on The Motley Fool UK.
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