Rolls-Royce share price forecast for November
Rolls-Royce (LON: RR) share price has staged a strong recovery in the past few weeks as investors focus on the company’s growth. The stock surged to a high of 80.67p, which was the highest level since September 13. It has jumped by more than 24% from the lowest level this year.
Rolls-Royce earnings ahead
Rolls-Royce Holdings is a leading company in the aviation and defence industry. The company makes most of its money in the civil aviation industry, where it manufactures engines and services them. Most of its engines are of wide-body aircraft followed by those of private jets.
Rolls-Royce is also a leading player in the defence industry, where it manufactures engines for military aircraft and ships. Therefore, the company’s key industries are seeing strong growth in the past few months.
Rolls-Royce share price will be in the spotlight in November for several reasons. First, the company will publish its earnings on Thursday this week. Analysts expect that the company’s underlying revenue for the year rose to over 11.5 billion pounds followed by 12.6 billion in FY’23. The firm’s profitability is expected to have risen to over 460 million pounds this year.
Analysts expect that the company’s revenue rose because of the strong performance of the aviation industry. Its results will also be boosted by the strong US dollar and the strong performance of large defence orders. Recent earnings by companies like Lockheed Martin and Raytheon showed a strong uptick in orders.
The Rolls Royce share price will also react to a number of corporate presentations. On November 8, the management will present at the UBS European Conference. This one will be followed by the Redburn/Rothschild & Co Nuclear Investor session.
Rolls-Royce share price forecast
So, should you buy Rolls-Royce shares? The four-hour chart shows that the RR share price has been in a strong bullish trend in the past few weeks. In this period, it has managed to move to the 50% Fibonacci Retracement level. It also rose above the 25-day and 50-day moving averages.
The stock also rose above the key resistance point at 75.35p, which was the highest point on October 4. Its Relative Strength Index (RSI) has continued rising. Therefore, there is a likelihood that the stock will keep rising as buyers target the key resistance at 90p in November. This view is in line with what I wrote in this article.