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

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Rolls-Royce share price triangle pattern points to a surge in 2025

by admin January 22, 2025
January 22, 2025
Rolls-Royce share price triangle pattern points to a surge in 2025

The Rolls-Royce share price remains at its all-time high as investors assess whether its spectacular rally in the past few years. Its stock was trading at 600p, bringing the 12-month gains to near 100% and its market cap to over $68 billion. It has become the 15th biggest company in the UK. 

So, can the Rolls-Royce stock price continue rising after forming an ascending triangle chart pattern on the daily chart?

Rolls Royce share price has thrived

The company has experienced a strong turnaround in the past few years as demand for its products and services rose. Management’s cost-cutting measures and major macro themes, including wars, the ongoing travel boom, and the energy supercycle, also benefited the company. 

The company has slashed costs in billions in the past few years by laying off workers and either selling or shutting off some of its least profitable businesses. 

It is also benefiting from the ongoing travel boom after the COVID-19 pandemic that has helped push airline stocks like United Airlines and IAG to their multi-year highs. 

The ongoing wars in the Middle East and Europe and the growing tensions between the United States and China have increased demand for defense products. This is notable since the company manufactures products in air combat, submarines, and space. 

Most recently, Rolls-Royce has positioned itself as the leading player in the nuclear energy industry, which is making a big comeback. The UK plans to use its technology to launch multiple small modular reactors (SMRs).

SMRs are in high demand because of the artificial intelligence industry that is seeing robust growth. Just on Tuesday, Donald Trump unveiled a $100 billion investment from Softbank, OpenAI, and Oracle. The plan will fund AI infrastructure in the US, including data centers and campuses. 

Many data center companies are considering using modular nuclear power plants, which are small and cheaper to operate long-term.

The most recent results revealed that Rolls-Royce’s business was doing well. Its operating profit rose by 74% in the year’s first half, while its operating margin improved to 14%.

Rolls-Royce’s free cash flow rose by 225% to £1.2 billion, while the return on capital was 13.8%. Management wants to continue the trend of increasing operating margins. The civil aviation division’s operating margin rose to 18%, a 5.6% increase. Defense and power systems had operating margins of 15.5% and 10.3%, respectively. 

The next catalyst for the Rolls-Royce share price will be the upcoming GE Aviation earnings which will provide more information about the state of the aviation industry. GE’s earnings are notable because the two companies operate in the same industry and are affected by the same factors. 

Rolls-Royce will then release its full-year results on February 27. Based on the recent trading update, the management noted that the full-year numbers will be in line with guidance. This means that the company expects to make an operating profit of between £2.1 billion and £2.3 billion and free cash flow of between £2.1 billion and £2.2 billion. 

Rolls-Royce share price analysis

RR chart by TradingView

The daily chart shows that the RR stock price has been in a strong uptrend for a long time. It has found a strong resistance at 600p. The stock has formed an ascending triangle chart pattern, a popular continuation sign. This pattern is made up of a horizontal line and an ascending trendline. 

The Rolls-Royce share price has remained above the 50-day moving average. Therefore, the stock will likely continue rising in the near term because of the triangle pattern. If this happens, the next point to watch will be at 650p. 

The post Rolls-Royce share price triangle pattern points to a surge in 2025 appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
VIRTUAL price prediction: Can this AI agent coin rebound?
next post
USD/TRY forecast: Turkish lira crashes ahead of CBRT rate cut

Related Posts

Here’s why Jasmy, Solana, Shiba Inu, Pepe and...

February 28, 2025

Expensive Asana stock price could surge by 195%...

December 22, 2024

Best blue-chip ETFs to buy for a SWAN...

January 17, 2025

DJT stock price forecast: can Trump save this...

January 21, 2025

+30,000m Drilling Program to Commence Across Brightstar’s Enlarged...

May 6, 2024

Cyprium and Glencore Announce Commercial Strategic Partnership

July 26, 2024

USD/RUB forecast: here’s why the Russian ruble is...

March 29, 2025

CoreWeave stock price analysis: is it the next...

May 19, 2025

Indicator Minerals in Gold Exploration (Updated 2024)

April 24, 2024

Carnival stock price could go parabolic as golden...

December 23, 2024

    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

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • 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