American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Rolls-Royce share price key levels to watch as rally stalls

by admin November 25, 2024
November 25, 2024
Rolls-Royce share price key levels to watch as rally stalls

Rolls-Royce share price has pulled back in the past few weeks after soaring to a record high of 592p earlier this month. The stock has moved to 546p on Friday, down by 7.8% from its highest level this year. Its market cap has moved to about $58.4 billion. 

Rolls Royce has made progress

The Rolls-Royce stock price has done well in the past few years, helped by the strong demand for its civil aviation and defense division. 

Many airlines like United, IAG, and Emirates have launched a substantial fleet modernization process. As a result, companies like Airbus and Boeing have announced huge backlogs of almost 15,000 planes. 

Rolls-Royce Holdings has also benefited from the ongoing wars in the Middle East and Eastern Europe. As a result, countries have been increasing their defense spending, a trend that will likely continue now that Donald Trump has won the election.

At the same time, Rolls-Royce’s management has worked to save costs by shutting its unprofitable divisions and even laying off some of its workers. The most recent announcement was its decision to sell its Naval Propulsors & Handling business to Fairbanks Morse Defense.

Read more: Rolls-Royce and GE Aviation stocks reversed: is the rally over?

Rolls-Royce also sold its Direct Air Capture assets and the lower-power-range engines if its power dvision to Deutz AG. The other notable decision was to close its Rolls-Royce Electrical’s Advanced Air Mobility business.

These actions have left a company that is fairly leaner than what it had a few years ago. They have given it cash that it needs to improve its innovation through research and development (R&D).

The most recent trading statement showed that the company’s business continued to do well, with its underlying operating profit expected to be between £2.1 billion and £2.3 billion. Its free cash flow is expected to be between £2.1 billion and £2.2 billion. 

The civil aviation division reported strong results, helped by the demand of wide body planes and a 18% increase in flying hours. The same is true with its civil aviation business whose demand has risen because of higher spending. However, this division is still going through severe supply chain challenges. 

Read more: Could the Rolls-Royce share price suffer a harsh reversal soon?

In a statement on Monday, the management noted that the company will see more sales of its troubled Trent 1000 engine that powers Boeing 787 Dreamliner. The company expects that two of its fixes will help to boost demand. In an interview, the CEO said:

“By the end of next year, we will have a very competitive product and then we are going to push that product because it’s a very good product. But durability has been the issue.”

A key concern about the Rolls-Royce share price is that its stock has become relatively overvalued. The stock trades at a forward P/E ratio of 36, higher than the sector median of 24. It has a price-to-free cash flow multiple of 14, which is fairly overvalued.

Rolls-Royce share price analysis

The daily chart shows that the RR share price peaked at 592.4p on November 6. It has formed an ascending channel shown in yellow. 

The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA), meaning that bulls are in control for now.

The recent rebound happened after it formed a doji candlestick pattern. In most periods, doji is a popular bullish candlestick pattern. The Relative Strength Index (RSI) has risen and is nearing the key point at 50.

Therefore, the stock has two potential scenarios in the coming days. First, a drop below the support at 517.4p, its lowest point last week, will point to more sell-off as sellers target the key support at 480p. Second, the alternative scenario is where it rises and retests the upper side of the channel at 592.4p.

The post Rolls-Royce share price key levels to watch as rally stalls appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Is it safe to buy the Enterprise’s share price dip?
next post
Italian lender UniCredit proposes $10.5 billion acquisition of rival Banco BPM

Related Posts

HSBC share price forecast ahead of earnings: buy...

February 14, 2025

Coinbase stock price has key tailwinds in 2025:...

January 19, 2025

Rivian stock price forecast: here’s why RIVN could...

November 14, 2024

Top 3 best ETFs for value investors in...

December 21, 2024

Asian markets open: Japan’s Nikkei falls 1.1%, Sensex...

July 1, 2025

US retail sales and manufacturing output decline in...

February 15, 2025

How Delta made itself America’s luxury airline —...

June 27, 2024

Volvo’s Q3 earnings fall short: stagnant demand raises...

October 18, 2024

McKinsey halts generative AI consultancy in China: what...

July 23, 2025

EU metal producers push for export curbs on...

June 24, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Zinc prices rally on US rate cut hopes, despite supply oversupply

      August 27, 2025
    • Mitsubishi exits Japanese offshore wind projects citing soaring costs

      August 27, 2025
    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025

    Categories

    • Business (3,773)
    • Investing (2,787)
    • Latest News (2,050)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved