Revealing Top Contenders in the Education Sector
The Zacks Schools Industry shines the spotlight on leading consumer discretionary stocks, ranking in the upper echelon among over 250 Zacks industries this season. Notably, perched on the esteemed Zacks Rank #1 (Strong Buy) list, these highly-ranked education stocks are beckoning investors with positive earnings forecasts.
Adtalem Global Education ATGE
A paramount figure in healthcare education, Adtalem Global Education has witnessed a 7% and 9% surge in its fiscal 2024 and FY25 EPS estimates, respectively, over the past 60 days. Engaged in a myriad of healthcare service programs including Chamberlain University and Walden University, alongside other medical and veterinary schools, Adtalem’s shares are valued at a modest 10.9X forward earnings. Anticipations of a 10% rise in annual EPS for this year, followed by a further 13% jump in FY25 to $5.23 per share, have captured investors’ attention. Moreover, the company’s continuous top-line growth is foreseen to expand by 6% in both FY24 and FY25, with total sales projections exceeding $1.5 billion. Adding to the allure, Adtalem’s stock has surged by +36% over the past year, currently hovering around $50.
Image Source: Zacks Investment Research
Stride LRN
Emerging as a distinguished provider of K-12 education programs and career learning services, Stride has not gone unnoticed, with its shares skyrocketing by +61% over the past year and a notable +7% surge year-to-date to approximately $63.
Image Source: Zacks Investment Research
Touted with an “A” Zacks Style Scores grade for Growth, Stride envisions a remarkable 10% surge in total sales in FY24, set to elevate further by 6% the following year to $2.14 billion. Impressively, annual earnings are expected to escalate by a notable 45% in FY24 to $4.31 per share, compared to $2.97 per share in the previous year. Furthermore, FY25 EPS is predicted to ascend by 9%. Noteworthy progression lies in the 8% hike in FY24 earnings estimates over the last two months, coupled with a 4% boost in FY25 EPS estimates.
Image Source: Zacks Investment Research
Strategic Education STRA
Completing the trifecta is Strategic Education, known for its versatile post-secondary education programs through subsidiaries like Strayer University and New York Code and Design Academy (NYCDA). Appreciated for an impressive +16% uptick in stock value over the past year, now resting around $103 per share, Strategic Education’s expansion is gaining traction. Excitingly, FY24 earnings estimates have surged by 7% over the last 30 days, complemented by an 8% climb in FY25 EPS estimates just last month. Furthermore, annual earnings are predicted to leap by a notable 24% this year and continue to rise by 20% in FY25, reaching $5.55 per share. Projections also indicate a 5% augmentation in top-line growth for both FY24 and FY25, expected to reach $1.25 billion.
Evident from the robust surge in positive earnings estimate revisions, these exceptional Zacks Schools Industry stocks exhibit strong potential for continued upward price movement. Perdoceo Education PRDO and American Public Education APEI are also worth contemplating, both currently holding a Zacks Rank #2 (Buy).
Are You Ready for The Zacks Top 10 Stocks for 2024?
Seize the opportunity to be among the early birds to explore our top 10 stocks for 2024, meticulously curated by Zacks Director of Research, Sheraz Mian. This illustrious portfolio has exhibited remarkable and consistent success, outperforming the S&P 500 with a staggering gain of +974.1% from inception in 2012 through November 2023, nearly tripling the S&P 500’s +340.1%. Dive into Sheraz’s meticulous selection from the pool of 4,400 companies rated by the Zacks Rank, pinpointing the top 10 to hold in the year ahead. Don’t miss the chance to explore these freshly unveiled stocks with immense potential.
Unlock the Free Stock Analysis Report for Strategic Education Inc. (STRA)
Access the Free Stock Analysis Report for Stride, Inc. (LRN)
Check out the Free Stock Analysis Report for Adtalem Global Education Inc. (ATGE)
View the Free Stock Analysis Report for American Public Education, Inc. (APEI)
Explore the Free Stock Analysis Report for Perdoceo Education Corporation (PRDO)
Read the article on Zacks.com here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
