- LSE:RR sheds 0.29% as the LSE dips alongside global markets.
- Rolls-Royce continues to recover from its steep drop in October.
- News of potential COVID-19 vaccines has renewed investor interest.
LSE:RR has been hit hard during the coronavirus pandemic and it is not just because people are not buying its cars. Shares have had a tumultuous couple of months including a near 65% loss back in October. On Tuesday, RR’s stock traded flat as it lost 0.29% to close the trading session at $102.70, which is already a nice 30% recovery from its drop off last month. The stock has been wildly volatile so far this year with a 52-week price range of $1.57 to $746.20.
When people hear the name Rolls-Royce, the first thing that comes to mind are its luxury vehicles that are hand-crafted and widely considered of the highest quality. But one of the reasons that the stock has struggled throughout the COVID-19 pandemic is that Rolls-Royce is one of the largest manufacturers of jet engines for the commercial airline industry. Similar to Boeing (NYSE:BA) and other companies in the aerospace industry, COVID-19 has completely knocked their businesses offline. Recent announcements from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) about the efficacy of their current COVID-19 vaccine candidates has re-ignited interest in many of the stocks that have been beaten down throughout the pandemic.
Rolls-Royce share price
So is the stock worth diving back into at its current price levels? Perhaps. We could be in the midst of a rebound from stocks that have struggled during the coronavirus, just like in America where investors have shifted away from at-home companies. Rolls-Royce remains a volatile stock though, especially for one with an established brand and trading on a large exchange. A return to normal for air travel may still not be imminent so the increased optimism surrounding companies like Rolls-Royce could be labelled as an overreaction.
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