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Royal Mail shares: still a hold as strikes cripple UK distribution?

Royal Mail shares: still a hold as strikes cripple UK distribution?

Royal Mail shares [LSE:IDS] have been looking less than healthy this year: the stock has slumped from 592p back at the start of this year, to hit 206p at time of writing. We saw a further mini sell off of Royal Mail shares in September on news of strikes, and this seems to have compounded losses for those investors still in the newly rebranded IDS.

Royal Mail is in the same situation as several other companies, offering its workers pay rises that are well below current levels of inflation. Analysts have attacked the business for being out of touch, with a diminishing core letter business and a parcel business that has not been able to fully exploit the opportunities from online shopping.

According to a recent article in the Financial Times, "Royal Mail seems to have managed only enough modernisation to moderate its decline rather than reverse it altogether. Its share price languishes around a sixth below its IPO price and has resumed a downward slide after a pandemic-induced hiatus."

We decided to run the stock through the analytics from our data partner Deshe Analytics to see how the company stacks up against peers like Wincanton or DX, and where investors should really be looking at those opportunities. Is it going to be a long, bleak winter for Royal Mail shares?


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