Sumary of What’s next for the Royal Mail share price?:
- The Royal Mail (LSE: RMG) share price fell yesterday after it released a quarterly trading update.
- The stock is still up over 55% since the beginning of the 2021 and has increased more than 195% during the past 12 months.
- Well, despite yesterday’s blip, I reckon the stock could push higher.
- Parcel boom What has been driving the Royal Mail share price is the parcel boom.
- So the market had become used to this being the driving force behind Royal Mail’s transformation.
- Royal Mail’s parcel volume for the three months ended June 2021 fell by 13% compared to the same period last year.
- What’s encouraging is that when this is compared to same three months in 2019, the quarter’s performance has increased by 19%.
- Even Royal Mail has highlighted that it’s “starting to see evidence that the domestic parcel market is re-basing to a higher level than pre-pandemic, as consumers continue to shop online”.