Lloyds and Rolls-Royce shares are rising. Should I buy now?

first_imgSimply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images “This Stock Could Be Like Buying Amazon in 1997” See all posts by Nadia Yaqub Nadia Yaqub | Friday, 4th December, 2020 | More on: LLOY RR Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Lloyds (LSE: LLOY) and Rolls-Royce (LSE: RR) shares are receiving a lot of attention right now. It’s not surprising to see why Hargreaves Lansdown investors are buying both stocks. The two companies were hit hard by the global pandemic.In the last month Lloyds and Rolls-Royce shares have rallied. But does this mean I should buy now? Let’s look at each company in turn.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…LloydsThe uncertainty of Brexit, Covid-19 and low interest rates haven’t been the ideal mix for Lloyds. Despite these far from perfect conditions, the bank is weathering the storm.Lloyds is the UK’s largest mortgage provider. In its recent results, the bank saw a significant increase in mortgages. This was boosted by the stamp duty holiday introduced by the Chancellor in July until the end of March 2021. I expect Lloyds to see strong demand in mortgages until then.Beyond March, I would expect the UK government to implement other measures to prevent the property market grinding to a halt. Additional measures will clearly be positive for Lloyds. Since the 2008 financial crisis, it has improved its financial position and this means it should be able to get through the global downturn.I expect low interest rates to stay for a while. This means that Lloyds isn’t paying much out on deposits. But it also means that the rates on loans are close to low levels. If Lloyds can survive on these low rates, I expected it to emerge from the crisis.Lloyds has announced change at the top with a new CEO, Charlie Nunn, a former HSBC banker. Nunn will replace António Horta-Osório, who has been in his post for a decade. A new CEO means that a fresh strategy will likely be revealed after Nunn’s arrival. A fresh pair of hands to steer the ship through murky water is just what Lloyds needs.With the share price at these levels, I will be adding it to my portfolio.Rolls-RoyceRolls-Royce makes most of its money by manufacturing and servicing engines for the airline industry. Since coronavirus drove the industry to a halt, this has decimated Rolls-Royce’s revenue. A Covid-19 vaccine means that tourism can bounce back and the company can start to do its job again.I believe that Rolls-Royce has done enough to weather the crisis. It has strengthened its balance sheet by raising capital through a rights issue. It’s preserving cash by making cost cuts so that the company is in a leaner position going forward.Rolls-Royce also derives 20% of its revenue from its defence contracts with the UK and US governments. This should provide it with revenue visibility and stability.Rolls-Royce shares have recently surged after the the company said that the coronavirus crisis has enabled it to develop new technology and hinted that it may re-enter the narrow-body jetliner market. It has until now focused on the wide-body plane sector, which has been hit hard by the pandemic. This news is refreshing as it offers the business a way to diversify its revenue and adapt to even the toughest times.Rolls-Royce shares look like a bargain to and as an investor with a long-term  outlook, I’m adding the stock to my portfolio. Enter Your Email Address Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Lloyds and Rolls-Royce shares are rising. Should I buy now?last_img

Leave a Reply

Your email address will not be published. Required fields are marked *