Rolls Royce Stock Analysis

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Rolls Royce Stock Analysis

Rolls-Royce Stock: The Bullish Party Is Over?

The stock price of Rolls-Royce has increased by 1488% in just 3 years. So, if one had invested $10,000 in the Rolls-Royce stock, it would be worth $158,800 in just three years.

But now, there are many experts who believe that the bullish party in Rolls-Royce stock is coming to an end. According to experts, there are now risks of a correction or even a major slide if Rolls-Royce's results fail to impress the investors.

Rolls-Royce Is Only Viable For Long Term Investors

Right now, the Rolls-Royce is trading at a P/E ratio of 55. Now, that's way higher than the FTSE 100's ratio of just 15. This also means Rolls-Royce will have to deliver perfect results, as even a minor slip will lead to a major downside.

Even the investors are now worried, and it has started to show in Rolls-Royce's stock price. The stock is now slipping lower, and there's a real chance that investors who bought at the top might get stuck.

But, if you are willing to buy and hold the Rolls-Royce stock for 5-10 years, then there's a lot to gain! By investing over a long horizon, you are essentially allowing the company to build on its progress.

However, the Rolls-Royce stock might not be a good fit for those who don't want to wait for that long. Given its high trading price, there's no sane investor who would buy at the top.

According to analysts, Rolls-Royce's share price will touch 1233p in the year 2026. So, that means an upside of around 8.9% based on the recent trading prices.

But if you are jumping on the Rolls-Royce stock in hopes of double-digit or triple-digit growth, then think again! It's basically not impossible for the Rolls-Royce stock price to keep making new highs.

To get the double-digit or triple-digit growth, you would have to look for other stocks in the FTSE 100 and FTSE 250.

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