Even in our rapidly changing world, the last 12 months have been a period of significant evolution in technology. But it’s not just NASDAQ that’s home to leading innovators! Brits can look closer to home, amidst the Footsie and FTSE 250…

Halma

What it does: Halma is a life-saving technology company committed to creating a safer, cleaner and healthier future.

by Paul Summers. I would rather buy shares of a technology innovator whose products are necessary, not just desirable. Member of the FTSE 100 Halma (LSE: HLMA) fits this bill nicely.

Halma, a group of approximately 45 companies, produces safety technologies for industrial and logistics operations, monitoring and protecting the environment and improving the quality of care provided by healthcare providers.

I don’t know about you, but I don’t see the demand for them decreasing. Therefore, I fully expect the company to continue to raise its dividend by 5% or more every year for the foreseeable future, as it has for the past 44 years!

The downside to all this is that Halma stock never trades at a low earnings multiple. That said, I believe the continued (but likely short-lived) reluctance of UK investors towards growth-oriented companies presents as good an opportunity as any for me to get involved.

Paul Summers has no position at Halma

TO RELAX

What it does: RELX is a global provider of information-driven analytics and decision-making tools for professional and business clients.

Author: Andrew Mackie. The My Stocks and Shares ISA remains relatively underexposed to the technology sector. This is mainly due to wealthy valuations across the board. However, I invest in technology businesses where I see a clear competitive advantage. TO RELAX (LSE: REL) is one such technology innovator.

Its powerful risk, legal and insurance datasets are constantly updated using artificial intelligence tools. Launched in October last year, Lexis + AI is likely to be a game-changer in the legal profession. The solution offers conversational search, knowledgeable legal drafting, insightful summaries, and document transfer and analysis capabilities.

The Risk Division is another area poised for rapid growth in the coming decade. Financial crime and digital fraud compliance are two such areas. But insurance risk is equally critical. Proprietary data analysis and decision-making tools enable insurance companies to improve their offerings throughout the value chain.

RELX is not a economical stock, with a trailing price-to-earnings ratio of 36. If the euphoria around AI wanes, the stock price will likely decline. However, as an investor with a long-term view, I am positive about the prospects.

Andrew Mackie owns shares in RELX.

TO RELAX

What it does: RELX is a global provider of information and data analytics for clients in the scientific, medical and legal communities.

Author: Ben McPoland. FTSE100 data company TO RELAX (LSE: REL) is fully exploiting the enormous potential of modern technologies and has already launched generative artificial intelligence in its LexisNexis legal business.

This Lexis+ AI solution enables conversational search, knowledgeable legal document drafting and summarization, and document transfer and analysis. Because it is based on RELX’s huge repository of legal information, the risk of invented content (hallucinations) is significantly reduced.

CFO Nick Luff said this AI tool is already creating “significant increases in productivity, whether it’s summarizing documents, conducting research, legal research or drafting court documents“

Last year, the company’s adjusted operating profit rose 13% to £3.03 billion on revenue of £9.16 billion (up 8%). This year, the company introduced a conversational AI product across its science, technology and medical facilities that will support clinicians in providing high-quality patient care.

The stock isn’t cheap to trade at 27 times forward earnings, potentially increasing valuation risk.

However, given that generative AI is expected to strengthen RELX’s business model, I believe this innovative FTSE company deserves a higher valuation.

Ben McPoland holds no shares in RELX.

S4 capital

What it does: S4 Capital is a network of digital media advertising agencies based in the UK and operating worldwide.

Christopher Ruane. Owning shares in S4 capital (LSE: SFOR) caused me to lose a lot of paper. Directors own a large portion of the stock but have been largely non-buying lately, despite the share price falling by almost two-thirds over the past year.

Still, I see the S4 as a technology innovator. Its digital-only model in the vast global advertising industry means it’s designed for what the marketing world is like now, not in the past.

So why are stocks falling?

Previous accounting delays have shaken the city’s confidence in the company’s management, although the city has made positive progress in this direction. The company is making losses. It has added debt to its balance sheet in recent years.

It’s clear that these stocks come with risks. However, I expect debt to decline, and cost control could help the company turn a profit. Its valuation looks low for its potential, and I still stand by it.

Christopher Ruane owns shares in S4 Capital.

Sage Group

What it does: The Sage Group provides integrated accounting, HR and payroll services mainly for small and medium-sized companies.

By Royston Wild. Over the last 43 years Sage Group (LSE:SGE) continues to expand its services to become one of the world’s top five enterprise resource planning (ERP) providers.

The FTSE100 The basis of our company is the provision of accounting and payroll software. It is currently investing heavily in artificial intelligence (AI) to increase the functionality of its cloud services.

It has recently been launched Sage Network Inbox AND Sage Co-pilot, the first tools in the company’s stable using generative artificial intelligence. CEO Steve Hare predicted that machine thinking “will be herechange nature” accounting, and the company strives to be at the forefront of this revolution.

The Sage share price has increased over the last 12 months. And that makes it trade at a forward price-to-earnings (P/E) ratio of more than 35 times.

Such high multiples are common among technology stocks. Remember, however, that elevated numbers like Sage also raise the likelihood of a price correction if there is bad news that spooks the market.

Royston Wild has no shares in Sage Group.