Nearly precisely a yr go (26 November 2023), I declared which UK firm I assumed had been the perfect share to purchase at the beginning of the yr. That was FTSE 100 info and analytics agency RELX (LSE: REL).

There have been so many issues to love about RELX. It was a bone fide UK tech star, having outpaced the Nasdaq because the begin of the Millennium, rising virtually five-fold.

It additionally appeared more likely to profit from the unreal intelligence (AI) revolution, because it harnessed the ground-breaking tech to counterpoint its proprietary datasets.

RELX, didn’t do it

It had truly been sitting on my purchase record since June final yr however, stupidly, I’d by no means received round to purchasing it.

Again then, the share price stood at 2,646p. By final November, it had climbed 15% to three,055p. At the moment, I’d need to pay 3,719p per share. That’s a rise of one other 21.7% over the yr. Over 5 years, the RELX share price is up 97.98%. So I’m nonetheless kicking myself.

So what stopped me shopping for RELX? It at all times regarded so expensive, buying and selling at round 30 instances earnings. On the time, I used to be on a FTSE 100 discount hunt, mopping up filth low cost dividend shares with valuations nearer to 5 – 6 instances earnings. However RELX has taught me {that a} excessive yield and low price-to-earnings ratio isn’t every little thing.

Its shares are nonetheless costly right now, buying and selling at 32.65 instances earnings with a comparatively meagre trailing yield 1.54%. That’s higher than it appears to be like although, as a result of the board has a robust observe file of dividend development. In July, it hiked the interim dividend by 7%, for instance.

A buying and selling replace on 24 October reported that underlying revenues had grown 7% for the primary 9 months of the monetary yr, with optimistic momentum throughout the group. The board anticipates one other yr of robust underlying income and adjusted working revenue development.

I can buy this development inventory in December

On 8 November, JP Morgan Cazenove lifted its share price goal for RELX from 4,200p to 4,550p, as its Authorized and STM (scientific, technical & medical) regarded set to take pleasure in AI-powered development.

In complete, 11 analysts comply with RELX and so they provide a decrease median one-year share price forecast of 4,023p. That’s up 7.97% from right now. JP Morgan’s is without doubt one of the newer and suggests development of twenty-two.2%.

As but, we don’t know for positive whether or not AI will show the nice game-changer. Anybody who has performed round with chatGPT software program has discovered it has limitations, and can’t be relied upon for 100% accuracy. Or wherever close to.

Plus its fortunes are nonetheless tied to the financial cycle. These are unsure instances as inflation proves sticky and gross sales might take a success if sectors corresponding to authorized or monetary providers battle.

However with RELX rising strongly, together with by way of acquisitions, and launching common share buybacks I feel it appears to be like properly set for 2025 too.

Now this time I plan to behave on that and purchase it. If it’s not the easiest FTSE 100 share for me to purchase right now, it’s not far off.