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International inventory markets positive have loved a powerful run over the previous 5 years, with the S&P 500 up roughly 110%. In the meantime, the FTSE 100 has risen roughly 75%.
Nonetheless, with valuations in lots of US development shares now wanting very stretched, market watchers are voicing considerations a few potential correction. So it’s not unrealistic to count on the following 5 years may carry extra modest returns.
With the FTSE 100 much less dominated by high-flying development corporations, I’m considering it might be good to contemplate alternatives nearer to residence.
One I discover notably compelling is London Inventory Trade Group (LSEG).
An under-the-radar AI play
The corporate that runs the London Inventory Trade (LSE) might not sound like a typical AI tech big, but it surely’s quietly constructing a few of the most important AI-enhanced knowledge and analytics instruments within the UK.
That is performed by way of its Knowledge & Analytics division (previously Refinitiv), which supplies crucial market knowledge infrastructure globally. Not too long ago, it introduced a collaboration with Anthropic to make its licensed monetary knowledge accessible by way of its Claude AI platform.
It’s additionally deepened its strategic partnership with Microsoft, enabling knowledge from the LSE to combine with Microsoft Copilot and Azure workflow instruments.
Monetary efficiency
The enterprise is presently rising from a dip, having reported natural earnings development of seven.8% in Q1 2025. And it appears all its divisions have benefitted, together with Markets, up 10.7% and Threat Intelligence, up 10.7%.
In the meantime, the corporate executed £245m of its £500m share buybacks by April and reaffirmed steering for 2025.
Earnings forecasts recommend about 17% annual development over the following three years, whereas 16 out of 19 analysts give the inventory a Sturdy Purchase score. With the shares recovering from lows close to £81 and already buying and selling round £97, I believe it’s a inventory price contemplating earlier than it takes off.
What are some dangers?
Though the group affords promising publicity to knowledge and AI-driven development, there are dangers price weighing. Its transformation from change operator to knowledge & analytics enterprise includes substantial funding, and any misstep may damage profitability
As well as, one among its smaller fairness investments, PrimaryBid, was written down by 87% in worth in 2025.
Regulatory adjustments, data-licensing disputes or slower-than-expected AI adoption may all derail the thesis.
My verdict
With diversified companies in market infrastructure and a strategic concentrate on international knowledge and analytics, London Inventory Trade Group seems well-positioned for development and recurring income.
Whereas previous efficiency isn’t a assure of future outcomes, its current efficiency has outpaced many friends and the underlying enterprise seems sturdy. That mentioned, any investor ought to preserve an in depth eye on how properly its AI-driven knowledge technique executes and whether or not the corporate maintains margin enlargement.
Taking all this, I believe it’s price contemplating as a powerful contender to outperform the S&P 500 over the following 5 years.
Nevertheless it’s certainly not the one contender. RELX, the worldwide info and analytics group, is equally compelling. It operates a diversified subscription enterprise in scientific, authorized and danger info that tends to be much less cyclical than pure tech.
Another choice is Sage Group, the UK-based software program firm specialising in accounting and enterprise administration options. It’s a fantastic possibility for buyers hoping to take advantage of rising demand for digital transformation, cloud computing and Software program-as-a-Service (SaaS).
