If you’d have bought Rolls-Royce shares just 2 years ago you’d have a staggering amount now
- Rolls-Royce shares have had a mammoth two years
- And if you’d invested in 2022, the amount you’d have now might surprise you
- But investing now might not be such a good idea
Published on May 31, 2024 at 4:40 PM (UTC+4)
by Amelia Jean Hershman-Jones
Last updated on Jun 03, 2024 at 8:13 AM (UTC+4)
Edited by
Tom Wood
Hindsight is 20/20, but if the past two years have taught us anything it’s that Rolls-Royce shares have been a pretty sure bet.
In fact, if you’d invested in Rolls-Royce shares two years ago, the amount you’d have now is pretty staggering.
The Rolls-Royce share price performance has been incredible and keeps getting better – even during the past month when the FTSE 100 rally went backward.
READ MORE! 8,000 hours were spent crafting the wood for Rolls-Royce’s latest Droptail
Their new post-Covid strategy of selling luxury cars at airshows for millionaire window shoppers is paying off.
It’s up 202.58% however, the US chip maker trailed at 184.36%.
The biggest benefits of the rally went to those who got in early.
If you invested $12,700 in Rolls-Royce shares two years ago, with the stock skyrocketing by 418.93% it would have grown by over 500% to roughly $66,000.
Despite US tech giant, Nvidia reportedly being worth more than Tesla and Amazon combined, Rolls-Royce’s share price smashed their performance. over the last year.
This could be down to constant innovation – like the 2025 Rolls-Royce Cullinan Series II making its public debut at Villa d’Este in Italy in May.
While what goes up must come down – it seems the aircraft engine maker is still paying down debt, boosting its credit rating, widening margins, improving contracts, and generally strengthening its balance sheet.
On May 24, the CEO of Rolls-Royce, Tufan Erginbilgic, said the brand had a ‘strong start’ despite supply chain issues in the luxury automotive field.
Service agreement large engine flying hours have also returned to pre-pandemic 2019 levels.
The Defense arm of RR also won contracts for the Australian submarine program.
Meanwhile, the Power Systems division is being driven forward by increased demand from artificial intelligence (AI) as well as cloud service providers.
But while it’s a rosy picture, it’s probably best to hold onto your hard-earned cash.
Rolls-Royce shares snapped back after they were oversold.
And this outstanding-performance rally means they’re now being overbought.
It’s pricier than the average FTSE 100 stock, currently trading at 31.9 times forward earnings for 2024.
If performance falls short of high expectations, the stock could get a rapid rerating.
Markets are banking on a dividend too, after years of paying no income.
The forecasted yield is 0.6% with that gradually experiencing limited growth in the short-term.
While the long-term outlook remains strong, the risks of price drops are, as ever, looming and growing.
This is inevitable after a boom like this.
Advice from personal finance journalist, Harvey Jones, is to buy if shares dip and hold onto them.
If they don’t? Hold tight for the next FTSE 100 recovery play.
Some of the images in this story were created using AI.
DISCOVER SBX CARS: The global premium car auction platform powered by Supercar Blondie
All Supercar Blondie contributors undergo editorial review and fact-checking to ensure accuracy and authority in automotive journalism. After gaining her BA Hons in French and English at the University of Nottingham, Amelia embarked on a vocational diploma from the National Council for the Training of Journalists (NCTJ). This led to numerous opportunities, from interning at Vogue to being on the small team that launched Women’s Health magazine in the UK, which was named the PPA Consumer magazine of the year for three years running. As Health, Beauty and Fitness editor, Amelia personally received a Johnson & Johnson Award and was shortlisted for both PPA and BSME titles. Since then, Amelia has created content for numerous titles and brands, including the Telegraph, 111 Skin, Waitrose, Red magazine, Stylist, and Elle, as well as being Head of Content at Vitality and Editor in Chief at INLondon magazine. “My superpower is translating technical jargon about the mechanical workings of a supercar into a relatable story you’ll want to share with your friends after you’ve read it.” After joining the SB Media family as a senior journalist in September of 2023, Amelia’s role has evolved to see her heading up the SEO output of the editorial team. From researching the most ‘Google-able’ key terms to producing evergreen content - it’s been a time of hard work, growth, and success for the editorial team and the Supercar Blondie website. “I like to think of myself as a ‘method journalist’. In other words: I live and breathe whatever I am writing about. When writing about fitness, I trained as a personal trainer, and as a beauty editor, I completed an ‘expert’ in scent diploma with the Fragrance Foundation. “During my tenure at Supercar Blondie, however, I did something I never thought possible: I passed my driving test at the age of 36. One day I’d love to train as a mechanic to better understand what happens under the hood, too. “My sweet spot is providing readers with a ‘takeaway’ (read: something new they didn’t know before) after reading every one of my stories. While I don’t claim to be an expert in the automotive world, I know the experts and bodies in the field to rely on to provide our readers with an informative and thought-provoking story every time they visit the site.”
