The Rolls-Royce Holdings PLC (OTC: RLLCF) stock has been one of the major gainers so far this year after having struggled considerably through the peak of the coronavirus pandemic. However, 2021 has been a different story due to a series of developments.
Although the stock is still up by a substantial margin this year, it corrected 50% from its latest peak on Thursday. Hence, it is necessary for investors to take a closer look at the company and its business. Rolls-Royce may be known more for its branded luxury vehicles but the company had sold the brand many years ago. Nowadays, its core business is that of manufacturing jet airplane engines, military engines, and associated parts for the same.
In recent days, the trading volumes in the stock have gone through the roof and that is possibly an indication that investors are now far more confident about Rolls-Royce’s prospects as a company. The possible end of the coronavirus pandemic and spike in engine orders could be one of the major reasons for this optimism.