• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Here’s why the Rolls-Royce share price could slip below 1000p

by August 19, 2025
by August 19, 2025

The Rolls-Royce share price has moved sideways this month as the recent surge faded. It dropped to a low of 1,067p on Tuesday, down from the year-to-date high of 1,110p. This article explores the top reasons why the stock may be on the cusp of a brief reversal. 

Rolls-Royce share price technicals point to a brief reversal

The weekly chart shows that the Rolls-Royce stock price has been in a strong rally in the past few months. It has remained much higher than the 100 and 50-week Exponential Moving Averages (EMA), a sign that bulls are in control for now.

The 100-day EMA is at 905p, while the 50-week figure is at 990p. As such, there is a risk that the stock will go through a mean reversion, where it moves back to its historical average. A good example of this is what happened in April when it plunged to the two averages.

The other major risk is that the stock may undergo a mean reversion, a phenomenon that has already begun to occur. Mean reversion happens when an asset’s oscillator starts moving downwards as the price rises.

The chart below shows that the Relative Strength Index (RSI) has been moving downwards and is now nearing the neutral point at 5o. Also, the Percentage Price Oscillator (PPO), which is a unique form of the MACD indicator has started to point downwards. 

Therefore, it is likely that the stock will have a slight pullback to at least 900p and then resume the uptrend. A move above the all-time high of 1,110p will invalidate the bearish view and point to more gains. 

Rolls Royce stock chart | Source: TradingView

Rolls Royce Holdings has strong fundamentals

To be clear: the bearish Rolls-Royce stock price forecast is not a sign that the company has major issues. It is based on technicals, which have formed on the weekly and daily chart timeframes. 

Rolls-Royce Holdings has strong fundamentals as demonstrated by its most recent financial results. Its revenue jumped by 13% in the year’s first half to £9 billion, while its gross profit jumped by 33% to £2.5 billion, helped by the management’s cost optimizations. Its operating profit soared by 50% to £1.7 billion, while the free cash flow rose to £1.58 billion. 

These results demonstrated that Rolls-Royce’s business was doing well in terms of its top-line and bottom-line. Additionally, its balance sheet improved to £1.08 billion from a negative £822 million in the same period last year. 

Rolls-Royce’s three businesses: civil aviation, power, and defence, are all having major tailwinds. Civil aviation is thriving as evidenced by the recent earnings by IAG, United, and Lufthansa. 

The defence segment’s revenue rose by 1% to £2.2 billion, driven by the transport, helicopters, and combat. Also, the power systems division jumped by 20%, helped by the AI tailwinds.

The only major fundamental risk facing the Rolls-Royce stock price is that it is highly overvalued. It has a forward price-to-earnings multiple of 61, much higher than the sector median of 23. 

The post Here’s why the Rolls-Royce share price could slip below 1000p appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
The new Wall Street: bringing investments on-chain with Hong Yea, Grvt CEO
next post
Interview: SEO yielding to LMO; early movers stand to benefit most, says ONAR’s CEO Claude Zdanow

Related Posts

Disney warns YouTube TV subscribers of potential blackout...

October 24, 2025

Top catalysts for the CAC 40 index next...

October 24, 2025

European stocks open higher, buoyed by a wave...

October 24, 2025

NatWest share price forecast as its earnings jump:...

October 24, 2025

Piyush Pandey dies at 70: The ‘Fevicol’ &...

October 24, 2025

Investors brace for Argentina’s midterm vote as Milei’s...

October 24, 2025

Reliance ramps up oil imports as US sanctions...

October 24, 2025

UK retail sales unexpectedly rise 0.5% in September,...

October 24, 2025

Reddit sues AI search engine Perplexity over data...

October 23, 2025

Europe markets open: Stoxx up 0.3% as Kering’s...

October 23, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • AIER’s Everyday Price Index Inches Up Again in Sept 2025

    October 24, 2025
  • Argentina’s Midterm Moment: Brave Reform, or Back to Perónism?

    October 24, 2025
  • Imagine That Growth: Lessons from a Tariff-Free Timeline

    October 24, 2025
  • Disney warns YouTube TV subscribers of potential blackout as carriage talks stall

    October 24, 2025
  • Top catalysts for the CAC 40 index next week

    October 24, 2025
  • European stocks open higher, buoyed by a wave of strong corporate earnings

    October 24, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (2,990)
  • Editor's Pick (295)
  • Investing (185)
  • Stock (2,042)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Top FTSE 100 shares forecasts: Glencore, BT...

July 9, 2025

Japan’s Nikkei 225 hits a record high,...

September 9, 2025

 Rheinmetall share price forecast: buy, sell, or...

July 15, 2025