Core Insights - The U.S. education market is transitioning from traditional methods to digital and career-focused programs, driven by student demand and government initiatives [2][11] - The Zacks Schools industry shows resilience, with median share prices above the S&P 500 composite, indicating promising mid to long-term prospects despite current stock performance [3] - Five education stocks are identified with expected earnings growth of over 10% year-over-year by 2026, including Chegg, Adtalem Global Education, Grand Canyon Education, Nerdy, and Legacy Education [4] Market Trends - The shift towards hybrid and AI-based learning models is gaining traction, with education companies adapting to meet the demand for flexible learning formats [5][8] - Companies like Chegg and Nerdy are benefiting from the rise of online and hybrid learning, leveraging AI-enhanced tools and subscription-based digital offerings [6][8] - The focus on career-oriented programs is increasing, particularly in high-demand fields like healthcare, aligning with workforce needs and supporting enrollment growth [9][10] Government Support - Federal and state initiatives are promoting EdTech adoption and workforce development, enhancing the prospects for education companies [11] - New interagency agreements aim to streamline program delivery and reduce administrative burdens, while a national policy established in April 2025 focuses on advancing AI education [11][12] Stock Performance - Chegg (CHGG) has a Zacks Rank of 1, with a projected earnings growth of 228.6% for 2026 despite a year-to-date drop of 42.9% [16] - Adtalem (ATGE) holds a Zacks Rank of 2, with a fiscal 2026 EPS estimate of $7.85 and expected growth of 17.7% [17] - Grand Canyon Education (LOPE) has a Zacks Rank of 2, with a projected earnings growth of 11.2% for 2026 [18] - Nerdy (NRDY) carries a Zacks Rank of 2, with an expected growth of 35.9% for 2026 despite a year-to-date decline of 16.7% [19] - Legacy Education (LGCY) also holds a Zacks Rank of 2, with a projected earnings growth of 11.9% for 2026 and a year-to-date gain of 23.8% [20]

Core Viewpoint - Adtalem Global Education (ATGE) shares have increased by 2.2% recently, with analysts suggesting a potential upside of 76.6% based on a mean price target of $166.5 [1] Price Targets and Analyst Estimates - The mean estimate includes four short-term price targets with a standard deviation of $7.51, indicating a range of estimates from $158.00 (67.6% increase) to $175.00 (85.6% increase) [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement [2][9] Earnings Estimates and Market Sentiment - Analysts are optimistic about ATGE's earnings prospects, with a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][11] - Over the past 30 days, one earnings estimate has increased, leading to a 0.8% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - ATGE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Core Insights - The Zacks Schools industry is experiencing a recovery driven by increased demand for applied and career-oriented education, particularly in healthcare, skilled trades, cybersecurity, and IT [1][5] - Technology is becoming a significant competitive advantage, with institutions investing in adaptive learning systems and online platforms to enhance student engagement and operational efficiency [2][8] - The industry is consolidating, with larger providers acquiring smaller institutions to expand offerings and improve operational leverage [6] Industry Overview - The Zacks Schools industry includes for-profit education companies offering various programs in finance, healthcare, technology, and skilled trades, focusing on career-oriented education [4] - The sector is addressing the shortage of healthcare professionals through intensive training models linked to industry needs [1][5] Trends Influencing Growth - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills [5] - Government initiatives supporting vocational education and non-degree pathways are contributing to the growth outlook [3][5] Financial Performance and Valuation - The Zacks Schools industry has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 Zacks industries, indicating positive near-term prospects [11][12] - The industry's forward 12-month price-to-earnings ratio is currently at 12.58X, significantly lower than the S&P 500's 23.57X, suggesting potential undervaluation [18] Key Companies and Their Prospects - **McGraw Hill**: Experiencing growth from digital and subscription models, with a projected fiscal 2026 earnings of $1.63 per share on $2.05 billion in revenues, reflecting a 300% surprise in the last quarter [21][24] - **Grand Canyon Education**: Focused on scalable online expansion and healthcare programs, with expected earnings growth of 12.9% and 11.2% for 2025 and 2026, respectively [27][28] - **Perdoceo Education**: Benefiting from rising student interest and expanding program offerings, with expected earnings growth of 11.4% and 9% for 2025 and 2026 [31][32] - **Adtalem**: Gaining from enrollment momentum and strategic partnerships, with projected earnings growth of 17.7% and 13.7% for fiscal 2026 and 2027 [35][37] - **Nerdy**: Enhancing its platform with AI integration, with improvements in earnings estimates for 2025 and 2026, indicating a potential investment opportunity [39][40]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1] - The Zacks Style Scores offer a unique rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2] Zacks Style Scores - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects, analyzing earnings, sales, and cash flow to find stocks with sustainable growth [4] - The Momentum Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate changes [5] - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - With over 800 top-rated stocks available, investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: Adtalem Global Education - Adtalem Global Education Inc. is a prominent provider of healthcare education and workforce solutions, operating in three reportable segments [11] - Currently rated 3 (Hold) with a VGM Score of A, Adtalem is positioned as a potential growth investment [11] - The company forecasts a year-over-year earnings growth of 17.7% for the current fiscal year, supported by upward revisions in earnings estimates [12] - Adtalem has an average earnings surprise of +17.4%, making it a strong candidate for investors seeking growth opportunities [12]

Core Viewpoint - Adtalem Global Education (ATGE) has been outperforming the Consumer Discretionary sector in 2023, with a year-to-date return of approximately 5.4%, while the sector has seen an average loss of 14.7% [4]. Company Performance - Adtalem Global Education is ranked 12 in the Zacks Sector Rank among 265 companies in the Consumer Discretionary group [2]. - The Zacks Rank for ATGE is currently 2 (Buy), indicating a positive earnings outlook [3]. - The Zacks Consensus Estimate for ATGE's full-year earnings has increased by 1.2% over the past quarter, reflecting improved analyst sentiment [4]. Industry Comparison - Adtalem Global Education belongs to the Schools industry, which is ranked 70 in the Zacks Industry Rank. This industry has experienced an average loss of 2.7% this year, indicating that ATGE is performing better than its peers [6]. - In contrast, Ralph Lauren, another stock in the Consumer Discretionary sector, has a year-to-date return of 42.1% and belongs to the Textile - Apparel industry, which is ranked 88 and has declined by 18.8% this year [5][6]. Future Outlook - Investors interested in Consumer Discretionary stocks should monitor Adtalem Global Education and Ralph Lauren, as both companies are expected to maintain their strong performance [7].

Adtalem Global Education (ATGE) has been on a downward spiral lately with significant selling pressure. After declining 37.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth prospects can be challenging [1] Group 1: Company Overview - Adtalem Global Education (ATGE) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2][10] Group 2: Earnings Growth - Historical EPS growth rate for Adtalem is 22.4%, with projected EPS growth of 16.6% this year, surpassing the industry average of 12.9% [5] Group 3: Asset Utilization - Adtalem has an asset utilization ratio (sales-to-total-assets) of 0.66, indicating greater efficiency compared to the industry average of 0.65 [6] Group 4: Sales Growth - The company's sales are expected to grow by 7.6% this year, significantly higher than the industry average of 3.7% [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Adtalem, with a 0.6% increase in the Zacks Consensus Estimate for the current year over the past month [8]

Financial Data and Key Metrics Changes - The total shares voted were at least 24.8 million shares, representing at least 68% of the issued and outstanding shares as of the record date, confirming a quorum for the transaction of business [11] - In the matter of the election of 10 directors, each nominee received at least 22 million votes, indicating substantial majority support [11] - At least 98% of shareholders voted in favor of the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the current fiscal year [11] - Over 86% of shareholders voted in favor of the advisory vote on executive compensation of Adtalem's named executive officers [11] Business Line Data and Key Metrics Changes - No specific data on business line performance or key metrics was provided in the meeting records Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting records Company Strategy and Development Direction and Industry Competition - The company continues to focus on maintaining strong governance with the election of directors and the ratification of independent auditors, which reflects a commitment to transparency and accountability [6][12] - The advisory vote on executive compensation indicates a focus on aligning management incentives with shareholder interests [9][10] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the meeting records Other Important Information - The meeting was conducted virtually, and a support line was available for technical difficulties [1] - The company expressed appreciation to shareholders for their participation and proxy submissions [4] Q&A Session Summary - No questions were submitted during the Q&A session, and the meeting concluded without any additional inquiries [14]

Core Viewpoint - The company is set to actively implement a share repurchase authorization, indicating strong confidence in its fundamental strength [1] Group 1 - The share repurchase reflects the company's belief in its financial stability and growth potential [1]