- Stocks that have earnings surprises but don’t gap up provide the best risk/reward ratio trades
- When you see a big beat or a big miss on a company as big as Rolls-Royce it’s often worth getting involved
Everyone knows Rolls-Royce (RR.). This civil aerospace and defence specialist is a company that exudes history and quality and for that reason has been a stock many people want to own regardless of its fortunes. But it is a business that has had varying degrees of success over the years.
During the first world war, Rolls-Royce shifted its focus to producing aircraft engines for the British aircraft industry, transitioning away from focusing on automobiles. Post-war, the company decided to introduce new luxury vehicles as well as continue in the aviation business. Come the second world war, its iconic Merlin engine powered famous aircraft such as the Spitfire and Hurricane. This success led the business to enter the jet engine market, where it’s still a leader today.