Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Adtalem Global Education (ATGE) , which belongs to the Zacks Schools industry, could be a great candidate to consider.This for-profit education company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.70%.For the last reported quarter, Adtale ...

Adtalem Global Education (ATGE) shares ended the last trading session 7.8% higher at $106.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.5% gain over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Adtalem shares soared, reflecting renewed investor optimism.This for-profit education company is expected to post quarterly earnings of $1.63 per ...

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Adtalem Global Education (ATGE) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Adtalem Global Education is one of 267 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different gro ...

Core Insights - The U.S. education sector is experiencing diverse growth driven by e-books, online learning platforms, demand for healthcare professionals, technology advancements, hybrid teaching models, and strategic acquisitions for global expansion [1][4] - Despite growth opportunities, companies in the Zacks Schools industry face challenges such as rising advertising costs, online education expenses, and competition from generative AI [1][8] Industry Overview - The Zacks Schools industry includes for-profit education companies offering undergraduate, graduate, and specialized programs in various fields such as finance, healthcare, and technology [3] - Companies also provide child-care services and career-oriented post-secondary courses, with some offering yoga classes and related merchandise [3] Trends Impacting the Industry - There is a rising demand for online education and healthcare professionals, with for-profit education companies adapting to virtual delivery methods and focusing on non-traditional education models [4][5] - Companies are implementing cost-saving measures, increasing technology use, and introducing new programs to enhance profitability and student outcomes [6] Financial Performance and Valuation - The Zacks Schools industry has a Zacks Industry Rank of 29, placing it in the top 12% of over 250 Zacks industries, indicating strong near-term prospects [10][11] - The industry's earnings estimates for 2025 have increased from $1.55 to $1.75 per share, reflecting growing analyst confidence [12] Stock Performance - Over the past year, the Zacks Schools industry has gained 1.8%, underperforming the broader Zacks Consumer Discretionary sector's 13% rise and the S&P 500's 19.6% increase [14] - The industry is currently trading at a forward P/E ratio of 16.2X, lower than the S&P 500's 22.2X and the sector's 18.9X [16] Notable Companies - **Adtalem Global Education Inc. (ATGE)**: Achieved a 10% increase in enrollment and a 105.7% stock surge over the past year, with earnings for fiscal 2025 expected to grow by 23.8% [19][20] - **Laureate Education, Inc. (LAUR)**: Maintained its position as the largest higher education provider in Mexico and Peru, with a stock increase of 49.6% and expected earnings growth of 11.9% for 2025 [23][24] - **Perdoceo Education Corporation (PRDO)**: Benefiting from improved enrollment trends and a 46% stock increase, with earnings for 2025 expected to grow by 5.2% [25][26] - **Strategic Education, Inc. (STRA)**: Focused on competency-based learning models, with a stock increase of 6.1% and expected earnings growth of 17.6% for 2025 [27][28]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Freshworks Inc. (FRSH) has seen a 4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - SoftBank Group Corp. (SFTBY) has experienced a 3.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Adtalem Global Education Inc. (ATGE) has seen a 2.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - FinWise Bancorp (FINW) has experienced a significant 10.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Phibro Animal Health Corporation (PAHC) has seen a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - The article compares Adtalem Global Education (ATGE) and Grand Canyon Education (LOPE) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Estimates - ATGE has a Zacks Rank of 2 (Buy), while LOPE has a Zacks Rank of 3 (Hold), indicating that ATGE's earnings estimate revision activity is more favorable [3] - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for value investors [2] Group 2: Valuation Metrics - ATGE has a forward P/E ratio of 17.38, compared to LOPE's forward P/E of 20.67, suggesting ATGE may be undervalued [5] - The PEG ratio for ATGE is 1.16, while LOPE's PEG ratio is 1.38, indicating ATGE has a better expected EPS growth relative to its valuation [5] - ATGE's P/B ratio is 2.72, significantly lower than LOPE's P/B of 7.02, further supporting ATGE's valuation attractiveness [6] Group 3: Overall Value Assessment - ATGE earns a Value grade of B, while LOPE receives a Value grade of C, highlighting ATGE's stronger position in terms of value metrics [6] - Given the favorable Zacks Rank and Style Scores, ATGE is positioned as the better option for value investors at this time [7]

Core Viewpoint - Adtalem Global Education (ATGE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For Adtalem, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Earnings Estimate Revisions - Adtalem is projected to earn $6.04 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 20.6% [8]. - Over the past three months, the Zacks Consensus Estimate for Adtalem has risen by 5.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Adtalem to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting that price movements alone may not be sufficient to predict future performance [1][2]. Group 1: Stock Performance - Adtalem Global Education (ATGE) has shown a solid price increase of 17.4% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 12.8% over the last four weeks, suggesting that the upward trend is still intact [5]. - ATGE is currently trading at 92.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - ATGE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, underscoring the effectiveness of this ranking system [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like ATGE that are on an uptrend supported by strong fundamentals [3]. - In addition to ATGE, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The article suggests utilizing the Zacks Research Wizard to backtest stock-picking strategies, enhancing the likelihood of selecting profitable stocks [9].

Core Viewpoint - Adtalem Global Education Inc. (ATGE) reported better-than-expected results for the second quarter of fiscal 2025, with earnings and revenues surpassing estimates and showing year-over-year growth, primarily driven by strong enrollment growth and strategic initiatives [1][3]. Financial Performance - Adjusted earnings were $1.81 per share, exceeding the consensus estimate of $1.39 by 30.2% and increasing 47.2% from $1.23 in the same quarter last year [3]. - Revenues reached $447.7 million, beating the consensus estimate of $429 million by 4.4% and reflecting a year-over-year increase of 13.9% [3]. - Adjusted operating income rose 34.2% to $75.6 million, with an adjusted operating margin expanding by 350 basis points to 22.7% [4]. - Adjusted EBITDA was $125 million, up 35.1% year over year, with an adjusted EBITDA margin expanding 440 basis points to 27.9% [5]. Enrollment Growth - Total student enrollment increased by 11.6% year over year to 91,264 students, surpassing the Zacks model prediction of 88,001 [4]. - Chamberlain University saw revenues increase by 17.9% to $181 million, with enrollment rising 11.5% to 39,691 students [6]. - Walden University generated revenues of $171.3 million, up 16.7% year over year, with enrollment increasing 13.2% to 46,399 students [8]. - The Medical and Veterinary segment experienced a revenue increase of 2.8% to $95.4 million, but total enrollment fell 0.7% to 5,174 students [9]. Liquidity and Cash Flow - As of December 31, 2024, cash and cash equivalents were $193.6 million, down from $219.3 million as of June 30, 2024 [10]. - Long-term debt increased slightly to $649.9 million from $648.7 million [10]. - Cash provided by operating activities totaled $70.3 million for the first six months of fiscal 2025, down from $81.9 million in the prior year [10]. Fiscal 2025 Guidance - For fiscal 2025, ATGE raised its revenue expectations to a range of $1,730-$1,760 million, up from the previous estimate of $1,690-$1,730 million [11]. - Adjusted earnings guidance was also raised to a range of $6.10-$6.30 per share, compared to the earlier prediction of $5.75 to $5.95 [11].

Second Quarter 2025 Earnings JANUARY 30, 2025 ©2025 Adtalem Global Education Inc. All rights reserved Safe Harbor CAUTIONARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fac ...