Stride’s Stock Performance and Growth Outlook Remain Strong
This week, Stride LRN was added to the Zacks Rank #1 (Strong Buy) list, as the stock approaches its 52-week high of over $140 per share. As one of the stock market’s top performers, Stride has surged more than +30% in 2025, with positive earnings estimate revisions suggesting this momentum may continue.
The leading K-12 education curriculum provider has experienced strong enrollment growth. In contrast, competitors like Chegg CHGG face challenges due to declining subscriber numbers amid the rise of AI-powered tools, which offer students free or low-cost academic assistance.
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Enrollment and Revenue Growth
Stride’s revenue has significantly increased, aided by its career learning programs targeting middle and high school students, as well as skills training for adult learners. Revenue is anticipated to climb 14% in fiscal 2025 and another 7% in fiscal 2026, reaching $2.49 billion. This projection would mark a 139% growth since the pandemic, with 2020 sales at $1.04 billion.
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Positive Earnings Projections
Earnings per share (EPS) estimates for fiscal years 2025 and 2026 have risen by over 4% in the past 60 days. Stride’s annual earnings are projected to grow 48% this year to $6.96 per share, up from $4.69 in 2024. For fiscal 2026, the EPS is expected to increase a further 9% to $7.62.
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Strengthened Financial Position
Stride’s financial health has also improved, with cash reserves growing to $692 million from $212 million in 2020. The company boasts $1.92 billion in total assets against total liabilities of $744 million, indicating a strong balance sheet.
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Valuation Metrics
Despite its notable rally in recent years, Stride stock trades at a forward earnings multiple of 20.6X. This valuation places it just slightly above the Zacks Schools Industry average of 15.3X forward earnings, indicating its strong position relative to peers like Adtalem Global Education ATGE, American Public Education APEI, and Universal Technical Institute UTI.
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Notably, Stride’s cash flow per share (CFPS) ratio of 8X is well above the industry average of 0.4X and the benchmark of 6.1X, highlighting its strong cash generation capability.
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Conclusion
Stride presents a compelling case for investment within the consumer discretionary sector, supported by promising growth indicators and financial stability. Investors may find this an advantageous time to acquire LRN shares, as the stock carries an overall “A” VGM Zacks Style Scores grade for Value, Growth, and Momentum.
