The RR share price has fallen 42% this month! Is this FTSE 100 stock now a bargain buy?

 

The RR share price has fallen 42% this month! Is this FTSE 100 stock now a bargain buy?

first_img 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. Our 6 'Best Buys Now' Shares Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” 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. Rolls-Royce Holdings (LSE:RR) is enduring a turbulent year. The FTSE 100 manufacturing giant is continuing to lose a lot of money thanks to the rapid decline in international air travel. A month ago, the RR share price reached a high of £4.64, but it has since fallen 42% at the time of writing. Does this now make it a cheap stock worth buying?RR share price declineIn its half-year results released this week, it confirmed it had spent £3bn in cash in response to the crisis. After implementing cuts to spending, it expects cash flow for the second half of the year to be better, providing the aviation industry gets back to business. However, with the pandemic still raging, Rolls-Royce continues to face turmoil ahead.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...In April it announced it is cutting 17% of its workforce, resulting in over 9,000 redundancies. This will help with its ambition to realise annual savings of £1.3bn by the end of 2022. The RR share price briefly reached a high of £7 in February but is unlikely to reach that level again for several years. Many shareholders will nurse their losses for a long time.Nevertheless, it is not solely reliant on air travel. Rolls-Royce is a world-renowned company specialising in the manufacture of vital pieces of modern engineering. It has five divisions: Civil Aerospace, Defence, Power Systems, Nuclear and R2 Data Labs. While its aviation business is suffering, its defence business has been coping. Geopolitical uncertainty is keeping governments on high alert and they are continuing to place orders. The crash in the oil price has also affected its Power Systems division, but the price of oil is steadying, and I think long term it will recover well.I find the work of the R2 Data Labs intriguing with huge potential for future progression. It manipulates big data and artificial intelligence (AI) to deliver technology of the future. This includes creating a virtual copy of each component it builds. Establishing a complex virtual environment gives it a futuristic way of analysing the performance of everything it builds. This will no doubt help it in its aim to deliver planet-friendly power solutions.Risk versus rewardI wrote about this FTSE 100 stock last month, concluding it was a risky buy. I still feel the same way, but if risk/reward is what you are after, then the RR share price could be worth watching. It is a powerful company at the cutting edge of technological innovation. It has a lengthy history of success, so I imagine it will get through these economic difficulties and recover. However, considering the uncertainty ahead for international air travel, its troubles are far from over. There is no dividend on offer to sweeten the deal, and I think the RR share price could well have further to fall. I would not rush to buy just yet. BAE Systems is an alternative FTSE 100 constituent I’d buy in the defence sector. Kirsteen Mackay | Friday, 10th July, 2020 | More on: RR center_img Enter Your Email Address 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. The RR share price has fallen 42% this month! Is this FTSE 100 stock now a bargain buy? See all posts by Kirsteen Mackay Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.last_img

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