Rolls Royce share price has been the best-performing stock in London’s blue-chip FTSE 100 index for the past few weeks. The RR stock has been on a strong rally for the past few months amid a strong recovery in the air travel sector. Since bottoming out in October last year, the stock has more than doubled. The company’s shares have jumped more than 66% in the year to date and 343% from its lowest level in 2020.
Rolls Royce share price has been screaming buy for the past few months as the engine maker stages a strong comeback. The stock has maintained its bullish stance as investors reacted to the relatively upbeat aviation industry. Recent news shows that companies in the aviation sector have been performing relatively well, which is a good thing for Rolls Royce Holdings Plc.
The main catalyst behind Rolls Royce’s recent rally is the company’s better-than-expected financial results for 2022. The company announced an improved free cash flow of £505 million, from an outflow of £1.485 billion in 2021. The company’s underlying profit for 2022 came in at £652 million, up from £414 million in the previous year.
The British aerospace company also reported a decline in its net debt to £3.3 billion, down from £5.15 billion in 2021. The decline in its bet debt was mainly delivered through cash it raised from the disposal of assets. Rolls Royce’s performance largely improved on the back of a 35% growth in the engine flying hours, where the company makes most of its money from.
Rolls Royce Share Price Forecast
The daily chart shows that the Rolls Royce share price has been on strong bullish momentum, jumping more than 139% from its lowest level in October. As I had predicted here, the RR stock price managed to move past the resistance levels at 140p and 150p.
The stock has managed to remain above the 25-day and 50-day moving averages while its Relative Strength Index (RSI) has moved into the overbought region.
Therefore, the RR share price is likely to extend its bullish trajectory in the coming weeks as bulls eye the next resistance levels of 180p and 200p.