This FTSE 100 growth stock sits at a 52-week low. Time to consider buying?

It’s truthful to say that the usually-pedestrian FTSE 100 has carried out brilliantly over the past 12 months. A achieve of 18% or so simply outperforms the tech-driven S&P 500.

Regardless of this, not each firm that options within the index is having such a good time.

Heavy faller

Shares in London Inventory Alternate Group (LSE: LSEG) have been in appalling kind recently. Anybody investing £10,000 on the finish of January 2025 could have seen their stake within the monetary knowledge, analytics, and threat administration options supplier shrink in worth to about £6,800.

Positive, holders could have obtained dividends throughout this era, however this might have barely made a dent. As befitting a progress inventory, the £41bn big yields underneath 2%. And that’s after the substantial fall (the yield rises because the share worth falls, all different issues being equal).

All this appears a bit unusual contemplating that the enterprise appears to be buying and selling nicely. Third-quarter numbers launched final October have been higher than anticipated, pushing the replenish over 7% on the day.

What provides?

Effectively, not less than a number of the fall seems to be right down to issues that nimbler rivals are out to steal a number of the group’s lunch by bringing more cost effective options to market.

So, is now the time for courageous contrarians to think about shopping for?

As soon as-in-a-blue-moon alternative?

On a optimistic word, the inventory is actually quite a bit cheaper than it as soon as was. As issues stand, we’re taking a look at a price-to-earnings (P/E) ratio of 18 for 2026. The common P/E for this firm over the past 5 years has been over 40! On paper not less than, this might recommend that there’s a adequate margin of security for brand new traders to become involved.

There are different points of interest past worth (as there must be). Regardless of it’s stunning efficiency of late, that is nonetheless an organization with a big world footprint. Its 10-year partnership with a titan like Microsoft additionally bodes nicely for product growth.

Even so, one can’t ignore the truth that working margins, whereas nonetheless above-average relative to the broader market, are nothing like the place they have been a couple of years in the past. The specter of cyberattack is especially excessive for a enterprise on this area, too.

Elsewhere, the variety of flotations on the London market stays sluggish and there are issues is that much more UK firms will transfer their listings throughout the pond. Efforts are being made to make the London market extra engaging however whether or not these will show adequate stays to be seen.

Staying affected person

Shopping for a inventory when everybody else appears to be promoting has the potential to be very profitable. Nonetheless, there isn’t a assure that London Inventory Alternate Group — or every other heavy faller for that matter — will recapture its earlier kind. Even when it does, a full restoration could take a while. And that’s with out contemplating what could occur if there’s a meltdown in inventory markets as a complete.

So, whereas I do assume that the shares are an attention-grabbing proposition at this worth, I don’t see this can be a slam-dunk worth purchase simply but. Full-year numbers — due on the finish of February — ought to present extra visibility on the near-term outlook.