RELX Share Price Growth Defies Expectations

RELX PLC (REL) has been a strong performer on the London Stock Exchange for many years. In 2023, the RELX share price climbed over 29% to reach new all-time highs.

The positive momentum has continued into early 2024, with the share price rising further in January.

This article will discuss the monthly RELX share price data from 2023 to early 2024 and examine the key drivers behind the share price performance.

Overview of RELX PLC

RELX is an FTSE 100 company and a global provider of information and analytics services. The company operates across four primary segments:

• Scientific, Technical & Medical
• Risk & Business Analytics
• Legal
• Exhibitions

Through these business areas, RELX provides customers with data, analytics, and decision tools in various sectors. Some of their well-known brands include LexisNexis, Elsevier, and Reed Exhibitions.

RELX has a consistent track record of modest organic revenue growth and steady profit margins. The company leverages its database assets and analytics capabilities to deliver customer value.

The company is now focused on accelerating growth as it increases investment in product development and expanding digital platforms.

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Steady Climb in RELX Share Price Through 2023

The RELX share price steadily climbed through 2023, appreciating 29% over the year. The stock reached new all-time highs month after month, reflecting the company's strong operating performance.

In January 2023, the RELX share price opened at 2,402p, already up from 2,010p a year earlier. The positive momentum continued in February, with the share price rising to 2,503p.

March saw a further gain to 2,618p, supported by RELX reporting a solid full-year financial performance for 2022. Adjusted operating profits rose 5% for the year, driven by underlying revenue growth across business segments.

The share price powered higher in April, peaking at 2,735p and notching a year-to-date gain of nearly 14%. This may be due to the performance of the acquired company Emailage, an American provider of fraud prevention and credit risk assessment tools.

After retreating slightly in May to 2,510p, the RELX share price rebounded in June to 2,621p. Through July, the share price consolidated around 2,620p.

In August, it dipped to 2,578p but quickly resumed its upward trajectory in September. October saw the stock breach 2,900p for the first time, peaking at 2,951p.

In November, the RELX share price continued climbing, crossing 3,000p and ending at 3,040p. Optimistic analyst reports on RELX's growth prospects provided a tailwind for the stock.

December capped a standout year for the RELX share price, which hit 3,110p, just shy of the all-time high. The 29% annual gain reflected the company's resilient performance and promising outlook.

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Share Price Hits New High in Early 2024

The bullish momentum in RELX stock has carried over into 2024 so far. In the first weeks of January, the share price continued to power to fresh record levels.

On January 2nd, the RELX share price opened the year at 3,124p. Buoyed by ongoing optimism around the information services sector, the stock increased over several trading sessions.

By January 16th, RELX hit 3,237p, establishing a new all-time peak for the stock. The company has yet to report full-year 2023 results, but the anticipation of strong numbers likely supports the share price.

Major investment bank analysts remain overwhelmingly positive on RELX stock as well. Credit Suisse reiterated its "Outperform" rating on RELX shares in early January, citing its leverage to global information markets.

With the global economy potentially facing slower growth in 2023, shares of information services providers like RELX are seen as relatively defensive. The company's diversified offerings and subscription-based revenues offer stability amid volatility.

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Key Drivers of the Surging RELX Share Price

Several factors have aligned to drive the stock higher over this period:

1. Strong Financial Performance

RELX achieved 18% organic revenue growth in 2022, and the momentum has continued. Profit margins remain robust, and cash flow generation is impressive. The company is delivering consistent growth across business segments.

2. Business Acquisitions

RELX has made a series of acquisitions, spending over £443 million in 2022 alone. Strategic purchases like Emailage expand fraud analytics and monitoring capabilities.

3. Growth Investments

The company invests heavily in new products, digital platforms, and AI tools. These growth initiatives aim to drive market share gains and position RELX for the future.

4. Defensive Attributes

With diverse revenue streams and resilient end markets, RELX offers some shelter from economic storms, making it an appealing stock for risk-averse investors.

5. FTSE Weighting

As a prominent FTSE 100 stock, RELX benefits from passive fund inflows. Strong performance means the stock accounts for an increasing portion of major UK indexes.

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Closing Thoughts

Since early 2023, RELX has achieved outstanding share price growth without major pullbacks. However, the rally appears justified based on the company's track record and growth opportunities.

Many analysts predict another year of robust financial results will happen in 2024, driven by RELX's global reach and diverse portfolio.

Barring an unforeseen collapse in global economic activity, RELX looks poised to continue generating healthy profits. While the shares aren't cheap based on traditional valuation metrics, the premium reflects RELX's strengths.

For long-term investors, RELX remains an attractive stock to own. The company has plenty of scope to leverage its intellectual property and extend its competitive advantages. Disciplined investments focused on customer needs enable RELX to deliver for shareholders.

While the RELX share price ascent could certainly pause or consolidate at these record levels, the long-term uptrend appears intact. RELX has emerged as a core holding for investors seeking stability and reasonable growth.

As the go-to information provider in multiple sectors, RELX still has many avenues to pursue. The company's leading brands and trusted solutions give RELX durable differentiation. Expect the positive momentum to continue.

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