Motley Fool (Friday 26th Oct 2018)26 Oct 2018 17:55
The popularity of online shopping is set to increase, and the company could therefore be in a strong position to capitalise on this. It’s also generating strong growth from its international segment, GLS. Further investment in GLS is set to be provided, and this could be used to make further acquisitions and enhance its position in what seems to be a number of growing markets across the world.
With the Royal Mail share price now having a P/E ratio of around 9, it seems to offer a wide margin of safety. Although further falls in its market value cannot be ruled out, in the long run it has the potential to generate improving financial performance. Given that unpopular shares can provide more appealing risk/reward ratios for the long term, the present time could prove to be a worthwhile buying opportunity for less risk-averse investors.