For investors looking for artificial intelligence (AI) beneficiaries that don’t go for ridiculous, pie-in-the-sky kinds of multiples, Thomson Reuters (TSX:TRI) stock is worth a closer look, especially as the firm looks to add to its incredible multi-year bull run, which, more recently, ran over a roadbump.
Indeed, there’s just so much to love about the long-term growth story over at Thomson Reuters as it continues to ready up for the AI age. Indeed, Thomson Reuters may be better known as a media firm.
But given its data advantage and the tech talent behind the scenes, I’m more inclined to view the firm as one of the more underrated AI winners in the making. Arguably, the firm has already made good use of the technology, with impressive new AI tools that could really hit the ground running.
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AI agents are a big growth engine to watch
Indeed, we’ve all heard about the next wave in AI (agentic AI or agents). Though many firms are innovating on that front, I think that 2026 will be the real year when agents start picking up traction. Either way, Thomson Reuters has a slew of intriguing agentic AI assistants that may very well unlock a new wave of growth at the firm.
Indeed, whether we’re talking about its weeks-old AI assistant or agentic solutions tailored to very specific industries, I think it’s a bad idea to count out Thomson Reuters if you’re looking for names that can win massively from the agentic AI boom, which, I believe, is still entering its first innings. And if all goes well, the agentic AI ballgame is one that may go into overtime. It may be a tad too early to tell where agentic solutions take a firm like Thomson Reuters.
Either way, I think the latest dip is more of a buying opportunity than anything else. Earlier this month, the stock fell briefly into bear market territory (down just shy of 22%) before bouncing back to around $244 and change. Indeed, the latest quarter was decent, but expectations were also quite high, especially considering the red-hot run going into the quarter.
TRI stock is getting pricey, but here’s why it’s still worth buying
Despite the latest correction in shares, TRI stock is still up more than 133% in the past five years. I’d argue that recent AI innovations could help unlock similar gains (if not more) over the next five. With Thomson Reuters stock stumbling after a relatively good second quarter, I think that shares are quite fairly valued at 49.6 times trailing price to earnings (P/E).
Now, that’s still a very expensive multiple, even for a firm with considerable momentum in AI. And while the current multiple still entails high expectations ahead of coming quarters, I think there’s also potential for a surprise to the upside, especially if the firm’s new AI products can really hit the spot with customers.
Indeed, TRI shares remain expensive, but, in my view, given all the catalysts and the AI talent behind the scenes, the stock deserves such a multiple. As such, I view TRI stock as a great, albeit somewhat pricey, buy. After all, if you want to own part of a wonderful (and timely) company, you’ll have to pay up.
