£10,000 invested in Rolls-Royce shares at the start of 2025 would already be worth £11,040 by mid-February if current trends continue.
The remarkable performance of Rolls-Royce shares so far in 2025 has investors wondering whether this could be a sustainable trend. However, the company's past experiences with growth shares and momentum investing raise concerns about the potential for a bubble to form. The forecasted P/E ratio of 32 and rising demand for aerospace engines may suggest optimism, but the supply chain environment remains challenging.
- The key difference between current Rolls-Royce trends and those of past growth shares is the underlying fundamental analysis that suggests this time could be different, rather than just a momentum-driven boom.
- How might the government's proposed changes to nuclear reactor regulations impact Rolls-Royce's business prospects and the broader aerospace industry?