The Relx share price is hovering near its all-time high as investors react to the company’s strong growth. However, the REL stock is trading at 2,312p, slightly below London’s all-time high of 2,415p. On the other hand, the company’s shares are trading at $28.53 in New York, meaning they have declined by more than 10% in the past 30 days.
Relx is a global company in the technology industry that provides analytics to companies worldwide. The firm has clients in about 180 countries, and it operates in about 40 countries. It is a firm with more than 33,000 employees. Relx operates in four key markets: risk, legal, exhibitions, and scientific, technical and medical. Most of its customers and employees are in North America. At the same time, it generates most of its revenue using a subscription model.
Relx has had a rough growth path in the past few years. For example, its revenue rose from $9.55 billion in 2018 to over $10.4 billion in 2019. However, the revenue declined to $9.7 billion during the Covid-19 pandemic. Then, in 2021, the revenue jumped to over $9.7 billion. Nonetheless, its net income has held relatively steady at almost $2 billion.
As a result, the company is a bit overvalued. It is trading at a price-to-earnings ratio of 27.8x and a forward multiple of 25.3. Its price-to-sales ratio has moved to 5.60, which is significantly higher considering that it has a forward growth of 2.8%. At the same time, it is a highly indebted company that has a total debt of $8.35 billion and $152 million in cash.
Relx share price forecast
The daily chart shows that the Relx share price has been in a strong bullish trend in the past few months. It has found a strong resistance level at about 2,416p, where it has formed a double-top pattern. Most recently, it has formed a small double-top pattern at 2,441p.
Further, the shares have crossed the 25-day and 50-day moving averages while the money flow index (MFI) has pointed downwards. Therefore, there is a likelihood that the Relx stock price will likely pullback as investors target the key support at 2,200p. However, a move above the resistance at 2,416p will invalidate the bearish view.
