3 reasons why I’m avoiding Rolls-Royce shares like the plague!
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A sustained recovery in the aviation industry has powered Rolls-Royce (LSE:RR) shares through the stratosphere. The engineer’s shares are up 151% in the past year alone.
With a profits-boosting restructuring continuing, too, I wouldn’t be surprised if the Rolls share price keeps on rising. City analysts are forecasting strong earnings growth all the way to 2026, which, if correct, could underpin further price gains.
| Year | Annual earnings per share | Annual growth |
| 2024 | 17.98p | 31% |
| 2025 | 21.16p | 18% |
| 2026 | 24.62p | 16% |
That said, there are also potential stormclouds coming the company’s way. And with a forward price-to-earnings (P/E) ratio of 30 times, signs of weakness could cause the share price…
