Stock Price & Analysis

Buy RBC stock as strong industrial performance and multiple price target increases suggest growth potential. Selling is not recommended due to positive analyst sentiment and revenue growth.

RBC Bearings (RBC) is predicted to reach a price of $400 by 2025. This forecast is supported by strong industrial performance and multiple price target increases from firms like Morgan Stanley and Truist. The stock's growth potential and positive analyst sentiment drive this bullish outlook.

The S1 support level for RBC Stock is $329.08 ,The R1 resistant level for RBC Stock is $348.37.

As of the end of day on 2025-03-24, the price of RBC Stock was $335.11.

The target price for RBC Stock according to analyst rating is 396.25, with the highest price target at 410.00 and the lowest at 390.00. Analysts have a Strong Buy rating on RBC Stock overall.

The market cap of RBC is $10.5B.

Analysis and Insights

Royal Bank of Canada (RY) appears to be overvalued based on several key metrics:

1. High Valuation Ratios:

   • The price-to-earnings (P/E) ratio is 14.96 for Q4 2024 and 14.42 for Q1 2025, above historical averages.
   • The enterprise value-to-EBITDA (EV/EBITDA) ratio is 23.91 for Q4 2024 and 20.97 for Q1 2025, indicating a premium valuation.
   • The price-to-book (P/B) ratio is 2.02 for Q4 2024 and 2.04 for Q1 2025, above the industry average of 1.5.

2. Dividend Yield:

   • The dividend yield is 3.33% for Q4 2024 and 3.22% for Q1 2025, providing some income support but not enough to justify the premium valuation.

3. Technical Analysis:

   • The stock is trading near the lower end of its Bollinger Bands, suggesting potential undervaluation, but the MACD and RSI indicators show bearish momentum.

4. Market Sentiment:

   • Analysts have mixed views, with some upgrading banks due to improved risk/reward scenarios, while others remain cautious due to economic uncertainty.

Conclusion

While RBC offers a strong dividend yield and stable operations, its current valuation metrics suggest the stock is overvalued. Investors should wait for a price correction or improved fundamentals before considering entry.

RBC Bearings Incorporated is a manufacturer and marketer of engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries. The Company operates through two segments: Aerospace/Defense, and Industrial. The Company's products include plain bearings, roller bearings, ball bearings, mounted bearings, enclosed gearing, motion control components and engineered components. Its plain bearings are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or heavy mining and construction equipment. Its roller bearings are anti-friction products that utilize cylindrical rolling elements. Its roller bearings include tapered roller bearings, needle roller bearings and needle bearing track rollers and cam followers. Its engineered components consist primarily of engineered hydraulics and valves, fasteners, precision mechanical components and machine tool collets.

Price Prediction for RBC Stock by 2030

RBC Stock is expected to reach $500 by 2030, driven by its strong financial performance and strategic positioning in the banking sector. The stock's current price of $342.8 reflects its solid foundation, with analysts maintaining a Buy rating and a price target of $190. RBC's diversification across Canada, the U.S., and other countries, along with its focus on innovation, positions it well for long-term growth.

RBC has a total of 3670 employees.