Stock of the Week: Royal Mail

Shares in Royal Mail are up this year on the back of the parcel boom, but its letters business continues to drag on the bottom line

James Gard 19 November, 2020 | 12:00PM

Post-It Note

Royal Mail Group (RMG) has just inched ahead of Imperial Brands (IMB) as our stock of the week, as voted for by our Twitter followers.

The listed letters and parcels business has had a tough time in recent years. Last time we wrote about the company, it was the second most shorted stock in the FTSE and had just cancelled its dividend for the full financial year of 2020-2021. But Royal Mail has benefited from the lockdown delivery boom and its shares are higher than at the start of the year, moving back above 300p after the recent market rally, not far off its float price in 2013 of 330p. Is this recovery a sign that investors are finally buying into Royal Mail’s restructuring plans?

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About Author

James Gard  is content editor for Morningstar.co.uk

 

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