Core Viewpoint - RELX PLC has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [4]. Company Performance and Outlook - The upgrade for RELX reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - For the fiscal year ending December 2026, RELX is expected to earn $1.95 per share, with a 4.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of RELX to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - RELX PLC has experienced significant selling pressure, resulting in a 6.7% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 indicating oversold conditions [2] - RELX's current RSI reading is 28.31, suggesting that the heavy selling may be nearing exhaustion, indicating a potential rebound [5] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for RELX, with a 3.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - RELX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Group 1 - The company reported a strong underlying revenue growth of 7% in the first nine months of the year, indicating positive momentum across the group [1] - The full year outlook remains unchanged at both the group level and for each of the four business areas [2] - In the Risk segment, underlying revenue growth was 8%, while Business Services, which accounts for over 40% of divisional revenue, experienced strong growth driven by financial crime compliance and fraud solutions [2] Group 2 - The Insurance segment, representing around 40% of divisional revenue, also saw strong growth due to the expansion of its solution set and positive market factors [2] - The STM segment achieved an underlying revenue growth of 5%, supported by new product introductions and renewals [2] - Databases, tools, and electronic reference, which represent around 40% of divisional revenue, delivered strong growth [3]

Core Insights - Yelp, Inc. (NYSE:YELP) is a significant player in the internet content industry, connecting users with local businesses through reviews and recommendations [1] - The current stock price of Yelp is $33.70, slightly above Goldman Sachs' price target of $33, indicating a potential decrease of approximately -2.08% [2][5] - Yelp holds a Zacks Rank of 1 (Strong Buy), suggesting a strong earnings outlook and potential undervaluation compared to competitors like RELX, which has a Zacks Rank of 3 (Hold) [2][5] Stock Performance - Yelp's stock has experienced a minor decrease of 0.38%, with a change of $0.13, and fluctuated between a low of $33.07 and a high of $33.80 during the trading session [3] - Over the past year, Yelp's stock has seen a high of $41.72 and a low of $29.96, indicating volatility in its market performance [3][5] Market Metrics - The company has a market capitalization of approximately $2.13 billion, reflecting its size and presence in the market [4] - With a trading volume of 1,175,661 shares, Yelp's stock remains actively traded, attracting investor interest [4]

Core Thesis - The bullish thesis on RELX PLC highlights its strong financial performance, robust growth in digital revenue, and strategic integration of AI tools, positioning the company as a reliable long-term investment opportunity [1][5]. Financial Performance - In 2024, RELX generated £9,434 million in revenue, reflecting a 7% underlying growth, with adjusted operating profit of £3,199 million (+10% underlying) and adjusted EPS of 120.1p (+9% at constant FX) [2]. - By H1-2025, revenue reached £4,741 million (+7% underlying) and adjusted operating profit was £1,652 million (+9%), with cash-flow conversion at 100% and net debt/EBITDA at 2.2x [3]. Business Model and Market Position - RELX operates as a critical provider of professional tools across various sectors, including science, law, risk analytics, and exhibitions, with digital and electronic revenue accounting for approximately 83% of total revenue [2]. - The company's competitive advantage lies in its proprietary datasets and its embedded position in workflow-critical spending, serving scientists, lawyers, and financial institutions [3][4]. Growth Drivers - Underlying growth in H1-2025 was broad-based across segments: Risk +8%, Legal +9%, STM +5%, and Exhibitions +8%, driven by analytics and AI integration [4]. - The integration of AI tools such as Lexis+ AI, Nexis+ AI, and ScienceDirect AI is enhancing decision-making and scaling the company's global operations [4]. Shareholder Returns - Management has executed £1.0 billion of a £1.5 billion buyback program, supporting shareholder returns alongside a 7% interim dividend increase [3]. - The company has delivered approximately +328% total shareholder return (TSR) under CEO Erik Engström's leadership, significantly outperforming the FTSE 100's +83% [4]. Future Outlook - Despite facing potential risks from AI monetization delays and pricing pressures, the combination of steady underlying growth, AI-driven workflow penetration, disciplined buybacks, and strong free cash flow positions RELX as a reliable long-term compounder [5]. - Sustaining approximately 10-12% EPS growth with modest leverage could generate 2-3x returns over a cycle, emphasizing the power of compounding and operational execution [5].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with RELX PLC currently holding a Momentum Style Score of B [2][3] Group 2: Performance Metrics of RELX PLC - RELX shares have increased by 2.75% over the past week, while the Zacks Internet - Content industry remained flat [5] - Over the past month, RELX's price change is 20.89%, significantly outperforming the industry's 4.32% [5] - In the last quarter, RELX shares rose by 8.86%, and over the past year, they increased by 29.78%, compared to the S&P 500's -6.46% and 11.69% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for RELX is 885,739 shares, indicating a bullish sign with rising stock prices [7] - In terms of earnings estimates, one estimate for the current fiscal year has increased from $1.68 to $1.70 over the past 60 days, with no downward revisions [9] - For the next fiscal year, one estimate has also moved upwards, reflecting positive trends in earnings outlook [9] Group 4: Conclusion on Investment Potential - Given the positive performance metrics and earnings outlook, RELX is rated as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Insights - The article compares Shutterstock (SSTK) and RELX PLC (RELX) to determine which stock offers better value for investors [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - SSTK has a forward P/E ratio of 3.67, significantly lower than RELX's forward P/E of 28.41 [5] - SSTK's PEG ratio is 0.45, while RELX's PEG ratio stands at 2.58, suggesting SSTK is more undervalued relative to its expected earnings growth [5] - SSTK's P/B ratio is 1.33, compared to RELX's P/B of 19.84, further indicating SSTK's superior valuation metrics [6] Value Grades - SSTK has received a Value grade of A, while RELX has a Value grade of D, highlighting SSTK as the more attractive option for value investors [6][7]