Does Rolls-Royce Holdings PLC (RYCEY) have what it takes to be a top stock pick for momentum investors? Let's find out.
Here is how Rolls-Royce Holdings PLC (RYCEY) and Woodward (WWD) have performed compared to their sector so far this year.
RollsRoyce (RYCEY) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.
Does Rolls-Royce Holdings PLC (RYCEY) have what it takes to be a top stock pick for momentum investors? Let's find out.
RYCEY benefits from a growing engine backlog across commercial/defense end markets, along with higher aftermarket contracts/servicing opportunities. The ongoing Iran conflict may trigger near-term noise in commercial flying hours, albeit potentially contributing to higher defense spending trends. RYCEY remains compelling at P/E of 31.81x and 3Y PEG of 0.69x, while offering an excellent upside potential to my long-term price target of $21.90.
Rolls-Royce (RYCEY) continues its upward trajectory, trading at decadal highs and nearing all-time highs. There's potential in the stock still, though. The company's healthy recent results only underline its relevance in the 21st century, especially with emerging demand drivers like AI data centres. The company's profit outlook for 2026 and over the medium term is positive too, though investors need to brace for a slowing down in revenue growth.
Rolls-Royce delivered robust FY results, with 14% revenue growth, 38% operating profit growth, and significant margin expansion. Mid-term targets have been upgraded: operating profit is now guided at £4.9–£5.2B and free cash flow at £5–£5.3B, reflecting strong execution. Despite a reduced 2027 price target of $17.89, I remain bullish due to resilient end-market growth and a pivot to shareholder returns.
Company raises profit outlook to £5.2 billion by 2028 and announces £9 billion shareholder returns Shares in Rolls-Royce Holdings PLC (LSE:RR.), the FTSE 100 jet engine maker, rose 6% to 1,393p after the company sharply upgraded its medium-term financial targets and unveiled plans to return up to £9 billion to shareholders.
Rolls-Royce sees 2026 underlying operating profit of between £4 billion and £4.2 billion, above the midpoint of £3.65 billion as expected by analysts polled by FactSet. It also announced a multi-year buyback program of between £7 billion and £9 billion, citing a strong balance sheet.
The U.K. engine maker boosted shareholder returns with a multiyear buyback of up to around $12 billion and raised its targets after earnings grew.
Rolls-Royce Holdings PLC has upgraded its medium-term targets and unveiled plans to return up to £9 billion to shareholders after reporting another sharp jump in profits and cash flow. The FTSE 100 engine maker posted final results showing underlying operating profit jumped 40% to £3.5 billion in 2025, as operating margins improved to 17.3% from 13.8% and revenue increased 13% to £20.1 billion.
Rolls-Royce Holdings PLC (LSE:RR.) reports full-year 2025 results on Thursday, and the numbers will almost certainly be good.