Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

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17. Thomson Reuters Corporation (NYSE:TRI)

Number of Hedge Fund Holders In Q2 2024: 22

Share Price Target Upside: -5%

Cantor’s Rating: Underweight

Average Analyst Share Price Target: $165.84

Thomson Reuters Corporation (NYSE:TRI) is a business intelligence company that also operates one of the most well known news wire services in the world. It is a well diversified business, that depends on providing research, digital transformation, news, and legal and tax information. Thomson Reuters Corporation (NYSE:TRI) benefits from the fact that news accounts for just 11% of its revenue as of Q2. News is a very volatile industry, and publishers often struggle to remain profitable. However, 42% of Thomson Reuters Corporation (NYSE:TRI)’s revenue comes from its business with law firms and governments through research and other products. This creates a lot of stability for its revenue, and given its brand name, Thomson Reuters Corporation (NYSE:TRI) also benefits from goodwill in the form of trust that can be hard to emulate by new entrants in the industry. Additionally, 77.7% of Thomson Reuters Corporation (NYSE:TRI)’s revenue during H1 2024 was from recurring line items, which means that the firm simply has to retain existing partnerships to ensure stable performance.

ClearBridge Investments mentioned Thomson Reuters Corporation (NYSE:TRI) in its Q4 2023 investor letter. Here is what the firm said:

“Additional outperformers included RELX, a publisher of law and related business trade information, and Thomson Reuters, a business services conglomerate with leading positions across media and other industry verticals, which own large, proprietary data sets and stand to become key beneficiaries of the processing power of the large language models that drive generative AI. These companies are rolling out new, AI-enhanced products at higher prices which should positively impact earnings in the near term.”

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