Why Rightmove plc (LON:RMV) Is A Buy When Markets Go Down

When stocks are plummeting in price, it's hard to start buying into all the uncertainty. But a disciplined long term investor knows there's no better time to buy than right now. And I'm not talking about buying into speculative, high-risk stocks. I'm talking about the well-proven, robust track record Rightmove plc. Why? Size. Financial health. Proven performance. View our latest analysis for Rightmove

Rightmove plc operates property portal in the United Kingdom. Established in 2000, and led by CEO Peter Brooks-Johnson, the company provides employment to 479 people and has a market cap of UK£4.06B, putting it in the mid-cap group. Bear market volatility can have a short-term impact on large, well-established companies, but in the long-run, these businesses are likely to prevail. This is because fundamentally, nothing has changed. A fall in share price is hardly detrimental to its financial health and business operations. So, large-cap stocks are a safe bet to buy more of when the stock market is selling off.

With zero debt on its balance sheet, Rightmove isn't constrained to debt obligations and covenants, which can be burdensome during financial downturns. Highly-levered companies have to maintain a cash cushion to meet near-term interest payments as well as meet unforeseen circumstances. With no lenders' needs to tend to, Rightmove enjoys financial flexibility and independence - an invaluable position to be in during bear markets. Its cash and short-term investment is also sufficient to cover other upcoming liabilities, which means RMV is financially robust in the face of a volatile market.

RMV’s annual earnings growth rate has been positive over the last five years, with an average rate of 18.15%, overtaking the industry growth rate of 13.77%. It has also returned an ROE of 838.60% recently, above the industry return of 12.50%. Characteristics I value in a long term investment are proven in Rightmove, and I can continue to sleep easy at night with the stock as part of my portfolio.

Next Steps:

Rightmove makes for a robust long-term investment based on its scale, financial health and track record. Remember, in bear markets, sell-offs can be unjustified. Ask yourself, has anything really changed with Rightmove? If not, then why not scoop it up at a discount? Lining your portfolio with a few well-established companies can reduce your risk and help you scale your wealth in the long run. One thing you should remember though, is to do your homework. Do your own research, come up with your point of view. Below is a list I've put together of other things you should consider before you buy:

1. Future Outlook: What are well-informed industry analysts predicting for RMV’s future growth? Take a look at our free research report of analyst consensus for RMV’s outlook.
2. Valuation: What is RMV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RMV is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.