Motley Fool recommendation "stock I would buy in 2022".17 Jan 2022 13:50
Mon, 17 January 2022, 12:35 pm
To buy or not to buy
Royal Mail has certainly seen an impressive last 24 or so months. It’s hard to ignore the all-around growth the company has been experiencing. It’s also hard to ignore the fact that the company is going to have to keep shelling out overtime payments to staff who are still working while maintaining its relatively generous sick pay to those who have come down with Covid-19 or have to isolate due to contact with sufferers.
I feel there is still some real value to this stock though. If 2022 is indeed the year in which we get the pandemic under control, RMG’s issues could soon be a thing of the past.
With a price-to-earnings ratio of just 5.69, this stock looks good value and is hard for me to pass up. While I remain cautious, it is a stock I would buy in 2022.