While FTSE 100 Currently, it is close to the highest all time, not all actions in the index participate in the rally. At the moment one of my favorite Footie supplies, London Stock Exchange Group (LSE: LSEG) or “LSEG”, has a 24% discount on ups.

Given the weakness of the share price, last week I won more shares in this world -class company. This is why you should now consider stocks.

Understanding the weakness of share prices

Last year, shares in the London Stock Exchange – which is currently one of the leading financial data providers in the world – had a great run, increased by about 21%. Many investors were excited about the potential of the software company, especially now that they cooperate Microsoft To develop AI solutions for banking banks and managers.

However, this year’s shares brought some profits. There are several reasons.

One of them is that the promised AI solutions did not fully materialize. Another is that AI there is fears that AI will lead to automation in the financial industry, which will cause fewer employees in companies, and therefore fewer users of the London stock exchange can download companies.

Now the first problem I don’t worry about too much. This is just a problem with time. These AI solutions are still coming. The company simply wants to make sure that they are exact before starting (other AI companies can pay attention here).

The second problem is a more real risk. And this is something to think about. However, I have here that banks and asset managers are generally very sluggish to automate the operation. So it’s not like LSEG’s income will suddenly fall from the cliff.

Meanwhile, I think that this problem is probably priced for shares. Looking at the forecast of earnings for next year, the price ratio to profit (P/E) is only 21 years. This is a really low level of earnings for a financial company with repeated revenues. I would expect that the P/E ratio will be closer to 30.

Solid results H1

It is worth noting that the last H1 LSEG results were solid. During this period, total income increased by 6.4% year on year. Meanwhile, the corrected profit per share increased by 20.1%.

Based on these results, the company raised the dividend by 15% (signaling confidence in management). He also announced the purchase of shares worth 1 billion pounds.

“We have built a company that is strategically adapted to many powerful growth factors: a long -term increase in demand for data to power and drive a modern economy, including for AI models, digitizing financial markets and growing regulatory, financial and reputational risk management requirements.”
David Flimims, general director of LSEG

I will also note that after the results of several people from the outside – including CEO – bought the company’s shares. This signals that people in the company expect the price of shares in the future.

My greatest possession of Great Britain

Fold all this and the risk prize configuration is attractive in my opinion. I did my greatest possession of Great Britain and I think it’s worth watching today.