Strategic Education, Inc. STRA has been reveling in the surge of enrollment trends in U.S. Higher Education (“USHE”) and Education Technology Services segments, along with favorable pricing and innovative programs.
Despite falling slightly behind its industry’s growth, STRA’s focus on competency-based learning and direct assessment capabilities, while experiencing strong demand in USHE and solid liquidity, paints a promising picture for the company.
However, the disappointing performance of the Australia/New Zealand (ANZ) segment and seasonal volatilities serve as hurdles for this Zacks Rank #3 (Hold) company.
Image Source: Zacks Investment Research
Let’s delve into the factors fueling its growth trajectory despite the prevailing challenges.
Factors Driving the Growth
Solid Enrollment: The company is benefitting from a robust demand environment and consistent year-over-year growth in university inquiries, witnessing substantial enrollment growth in its USHE and Education Technology Services segments.
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Hurdles to Pullback
Softness in the ANZ Segment: The ANZ segment displayed dismal performance due to decreased revenues and student enrollment, primarily affected by academic term start dates and foreign currency exchange impacts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
