The price of Rolls-Royce shares could continue advancing for these 3 reasons!

In recent years, one of the most notable opportunity costs in my portfolio has been selling my actions in Rolls-Royce (LSE: RR) When the price still had a long way to run, in the right direction.

Of course, no one knew then how impressive a performance would compare in the aeronautical engineer.

In fact, in recent years, Rolls-Royce shares price performance has been little less than phenomenal. In the last five years, he has risen by 517%.

So, should I add the sharing again to my portfolio today? Here are three factors that could see that they help increase the price of shares.

Strong moment of investors

A 517% gain sometimes occurs for a small growth stock. But for a large mature company in a mature industry, it is very unusual.

Clearly, investors liked the investment case for rolls and a recent update to their commercial objectives has not hurt at all.

I think that kind of enthusiasm could mean many buyers in the stock market and help maintain the price of Rolls-Royce shares increasing.

As an investor, however, I like to invest in business because I think they are undervalued in relation to their commercial perspectives, No Because I hope other people buy. So, although I think that the impulse of investors could help increase the price of Rolls-Royce shares, that does not encourage me to invest.

Solid customer demand

After some very difficult years, customer demand in the civil aviation sector recovered and helped the rolls to work well in recent years.

I think that could continue, which can say that demand remains high for the sale of new engines and for the service of existing ones.

That said, several US airlines have recently reported softening in the demand of national clients. If that trend turns out to be broader, it could be bad for demand.

Rolls is not just about civil aviation, however, as it is for the company. It also has a big defense business. As European governments continue to increase defense spending, I think that could be good news for the company's income and profits in the defense sector.

More efficient business

But so far, the business can grow in a certain year.

That helps what is known as the upper line: how much money the business is achieved. However, what also matters is what is called the bottom line. That is basically the company's profits.

The price of Rolls-Royce shares has increased in part because the company has established aggressive objectives to improve its results business through an efficiency impulse.

If that works, the profits could increase, potentially justifying a greater assessment.

Not for me right now

Even so, the business already quotes for 26 times profits.

That seems expensive according to the current performance. I fear that it does not offer me enough margin of error if the company finds some unexpected turbulence.

We saw during the pandemic how civil aviation demand can suddenly fall dramatically for reasons beyond the control of the rolls. I see that as a continuous risk and, therefore, I have no plans to invest.