2 top FTSE 100 stocks surging to record highs (hint — not Rolls-Royce)!

It’s a little bit of a delusion that FTSE 100 shares don’t go anyplace. Granted, the general index tends to maneuver upwards at a snail’s tempo, however some shares can produce very engaging returns if picked correctly.

Listed here are two high-quality Footsie shares which have simply notched all-time highs. Neither is rocketing Rolls-Royce ( which can be at a file stage).

InterContinental Accommodations Group

First up is InterContinental Accommodations Group (LSE: IHG). The inventory simply topped 10,000p (£100) for the primary time, having risen by a whopping 58% prior to now 12 months.

Over 5 years, IHG inventory has greater than doubled! It additionally pays a modest-but-growing dividend.

The corporate has a various portfolio of resort manufacturers, together with InterContinental, Crowne Plaza, and Vacation Inn. These are benefitting from a rebound in journey following the pandemic.

In Q3, world income per accessible room edged up 1.5%, regardless of weak point in China. The agency now has a worldwide pipeline of 327,000 rooms (2,218 inns) below growth or deliberate.

Clearly, IHG isn’t taking its foot off the pedal.

I’ve to admit, I’m disillusioned with myself as a result of I’ve had my eye on this inventory for a lot of months now. Working an asset-light enterprise, IHG franchises most of its places, amassing royalty charges on resort revenues. This ensures regular, worthwhile earnings with decreased operational dangers.

Unsurprisingly after its super run, the inventory’s valuation is kind of excessive, with a ahead price-to-earnings (P/E) ratio of 25. This doesn’t depart a lot margin of security if one thing dangerous (one other pandemic, struggle, and so forth) disrupts worldwide journey.

Nevertheless, I feel it may make for a superb addition to my portfolio, complementing Airbnb, Visa and Rolls-Royce, that are all benefitting in a technique or one other from a increase in world journey and tourism.

I plan to lastly spend money on 2025 if the share value dips again below £90.

RELX

The second FTSE 100 inventory hitting new heights is RELX (LSE: REL). Shares of the info options supplier have jumped 23% within the final yr, additionally boosting the five-year returns above 100%. Good.

Again in September, I wrote that I’d spend money on RELX instantly if the market crashed. It hasn’t, and since then the inventory has gone up one other 5%.

The valuation nonetheless appears a tad too excessive to me,although. We’re taking a look at a ahead P/E ratio approaching 30 — a big premium to the broader FTSE 100.

Then once more, the broader index isn’t filled with tech shares benefitting from the unreal intelligence (AI) revolution, like RELX.

It owns huge, hard-to-replicate datasets throughout science, medical analysis, and legislation (via LexisNexis). And it’s utilizing AI to rework these into highly effective instruments for its prospects.

For instance, its new platform leveraging generative AI, Lexis+ AI, is rising properly. It could analyse uploaded paperwork to determine potential authorized points, reply queries, and quickly draft paperwork.

Greater than half of RELX’s income is now subscription-based and recurring, serving to insulate it considerably from cyclical ups and downs. Within the first 9 months of 2024, underlying income grew 7%.

One potential danger I see is that fast AI developments may allow opponents to extract invaluable insights from open information sources, doubtlessly eroding RELX’s aggressive moat.

As issues stand although, the enterprise is buzzing alongside properly. The inventory stays on my watchlist heading into 2025.