Is Rolls-Royce a buy right now?

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By Oliver Rahman


 Rolls-Royce has shown strong performance recently, with its stock surging and reaching a valuation of £50 billion ($63 billion). They reported an underlying operating profit of £1.6 billion and a return on capital of 11.3% for 2023. All of this concerned, will the momentum of their stock continue into the future?


What's caused the increase?

The increases have been caused by the increasing demand of long-haul airliners. Rolls Royce (along with their fancy cars) are significantly important in making jet engines for these planes. This has caused the stock to rally over 600% in the past 2 years. They are also a leading player in the defense and aerospace industries and are adapting to the new futuristic world that awaits us.

What are they doing for the future?


Rolls Royce recently got a $1 billion dollar investment from Qatar to create more clean energy solutions. Rolls-Royce has partnered with the Qatar Foundation to create a center for climate-tech innovations. Rolls Royce wants to help startup businesses that are in the clean energy sector with R&D, accelerator activities, and venture capital funding.

Is Rolls Royce a buy?

For me, personally, I would buy it. However, I would wait a week or 2 before doing so after its recent rally, and dollar cost average along the way. This company definitely has potential to climb even higher than it already has, especially in a few years as clean energy becomes more important. 

Please make sure to read my disclaimer before considering any investment decisions




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