The Royal Mail share price jumps: is it too late to buy the stock?

first_imgThe Royal Mail share price jumps: is it too late to buy the stock? Enter Your Email Address 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. The Royal Mail (LSE: RMG) share price has really taken off over the past few months. Year-to-date, the stock is up 36%.Over the past year, its performance is even more impressive. Indeed, since the beginning of March 2020, the stock is up 180% excluding dividends. At just above 462p on Friday, shares in the delivery company are edging closer to their all-time high of 631p reached in May 2018.5G 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…This time last year, investors were deserting the company as it looked as if the pandemic would have a devastating impact on the business. As a result, the Royal Mail share price plunged to an all-time low of around 124p.However, exactly the opposite has happened. Rather than devastating the group’s business, the pandemic has provided windfall profits for the firm. Royal Mail has risen to this challenge. Management acted quickly to overhaul the group’s business, investing more in parcel delivery and operational efficiencies, which have allowed it to meet consumer demands.Without these changes, I don’t think the organisation would be in the position it is today.Royal Mail share price transformation For the past few years, Royal Mail has been losing market share to smaller, more nimble players in the delivery market. Unlike Royal Mail, which is obligated to provide a service to all properties in the UK, other firms can pick and choose their markets. For example, they can limit deliveries to London to maximise profitability. This is a challenge Royal Mail will likely always face. However, the group does have a big advantage over these firms. Its brand is recognised and trusted around the country, and most consumers know where their local Post Office is located.While the government-owned Post Office is run independently of Royal Mail, many people see them as one and the same. It’s far easier for many consumers to visit their local Post Office to send a package via Royal Mail rather than try and figure out how to organise a collection from another firm.Not that consumers need to visit a Post Office any more. Last year Royal Mail introduced a parcel pick-up service and parcel post boxes. These initiatives helped streamline the entire process for customers, at a time when the e-commerce market was booming.The challenge The big challenge Royal Mail now faces is maintaining its growth. It’s difficult to say whether or not it can hit this goal. The group faces stiff competition from all sides, and last year’s e-commerce boom may not last.What’s more, the group’s relationship with its workers has historically been quite unstable. These are all challenges the business will have to overcome as it advances. They also suggest there’s a chance the company could give up some of the progress it made last year with its new initiatives. Nevertheless, despite the challenges outlined above, I would buy the stock for my portfolio today. I think Royal Mail’s business changed substantially in 2020, and this deserves a higher share price in my opinion.  Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Rupert Hargreaves 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.center_img Our 6 ‘Best Buys Now’ Shares Rupert Hargreaves | Saturday, 6th March, 2021 | More on: RMG 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. See all posts by Rupert Hargreaveslast_img

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