Core Viewpoint - The article emphasizes the importance of value investing and highlights specific companies, Adtalem Global Education (ATGE) and Strategic Education (STRA), as strong value stock picks based on their financial metrics and Zacks Rank system [2][9]. Company Analysis: Adtalem Global Education (ATGE) - ATGE has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4]. - The Forward P/E ratio for ATGE is 14.67, which is lower than the industry average of 16.62. Over the past year, ATGE's Forward P/E has fluctuated between 8.93 and 14.91, with a median of 12.32 [4]. - The P/B ratio for ATGE is 2.50, compared to the industry average of 3.19. Its P/B has ranged from 1.30 to 2.50 over the past year, with a median of 1.88 [5]. - ATGE's P/CF ratio stands at 13.13, significantly lower than the industry average of 43.81. The P/CF has varied between 7.52 and 13.13 over the past year, with a median of 10.90 [6]. Company Analysis: Strategic Education (STRA) - STRA also holds a Zacks Rank of 2 (Buy) and a Value score of A, making it another attractive value stock [7]. - The Forward P/E ratio for STRA is 19.26, while its PEG ratio is 1.28, both of which are favorable compared to the industry averages of 16.62 and 0.86, respectively [7]. - Over the past year, STRA's P/E has ranged from 16.17 to 27.11, with a median of 20.26. The PEG ratio has fluctuated between 0.85 and 1.32, with a median of 0.82 [8]. - STRA's P/B ratio is 1.32, significantly lower than the industry average of 3.19. This ratio has varied from 1.23 to 1.84 over the past year, with a median of 1.42 [8]. Conclusion - Both Adtalem Global Education and Strategic Education are identified as likely undervalued stocks based on their financial metrics and earnings outlook, making them strong candidates for value investors [9].

Core Viewpoint - Adtalem Global Education (ATGE) has shown strong stock performance, reaching a 52-week high and outperforming its sector and industry benchmarks in terms of stock returns [1][2]. Financial Performance - Adtalem reported earnings per share (EPS) of $1.29 in its latest earnings report, exceeding the consensus estimate of $1.12, and beat revenue estimates by 4.82% [2]. - For the current fiscal year, Adtalem is projected to achieve EPS of $5.89 on revenues of $1.72 billion, reflecting a 17.56% increase in EPS and an 8.46% increase in revenues [3]. - The next fiscal year forecasts an EPS of $6.74 on revenues of $1.82 billion, indicating a year-over-year change of 14.43% in EPS and 5.95% in revenues [3]. Valuation Metrics - Adtalem's current valuation metrics show it trading at 15.8 times the current fiscal year EPS estimates, slightly below the peer industry average of 15.9 times [7]. - On a trailing cash flow basis, the stock trades at 11.1 times compared to the peer group's average of 12 times, with a PEG ratio of 1.05 [7]. Investment Style Scores - Adtalem has received a Value Score of A, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [6]. - The Zacks Rank for Adtalem is 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. Conclusion - Given the positive earnings surprises, strong financial projections, and favorable valuation metrics, Adtalem appears to have potential for further stock price appreciation in the near term [2][3][8].

Core Insights - The Zacks Consensus Estimate for Adtalem Global Education Inc. (ATGE) fiscal 2025 earnings per share has increased from $5.72 to $5.89, indicating a year-over-year growth of 17.6% [1] - The healthcare sector in the U.S. is experiencing a growing demand, coupled with a significant talent shortage, which Adtalem aims to address through its agile operating model and collaboration with Hippocratic AI [2] - Adtalem's Growth With Purpose strategy focuses on organic revenue growth, targeting a compound annual growth rate of 4% to 6% and adjusted EBITDA margin expansion of over 200 basis points by fiscal 2026 [7] Financial Performance - Adtalem's revenue guidance for fiscal 2025 has been revised to a range of $1,690 million to $1,730 million, up from the previous estimate of $1,660 million to $1,700 million [18] - The company reported a trailing 12-month return on equity (ROE) of 15.6%, outperforming the industry average of 9.4%, indicating efficient use of shareholder funds [13] Enrollment and Growth Trends - In the first quarter of fiscal 2025, Adtalem saw a year-over-year enrollment increase of 12.2% at Walden University and 11.7% at Chamberlain University, driven by strong demand in healthcare programs [12] - The overall growth in the healthcare sector is expected to continue supporting Adtalem's growth trajectory through fiscal 2025 into fiscal 2026 [12] Capital Allocation - Adtalem employs a balanced capital allocation strategy, utilizing free cash flow for business investments while also rewarding shareholders through share repurchases and dividends [3] - In the first quarter of fiscal 2025, the company repurchased 462,063 shares at an average price of $73.39 per share [3]

Core Viewpoint - The article discusses the effectiveness of a "Recent Price Strength" screen for identifying stocks with strong fundamentals and upward price trends, highlighting Adtalem Global Education (ATGE) as a potential investment opportunity due to its recent price performance and bullish indicators [1][2][3]. Group 1: Price Performance - Adtalem Global Education (ATGE) has experienced a solid price increase of 23.4% over the past 12 weeks, indicating strong investor interest [2]. - The stock has maintained a price increase of 0.3% over the last four weeks, suggesting that the upward trend is still intact [3]. - ATGE is currently trading at 96.2% of its 52-week high-low range, indicating a potential breakout [3]. Group 2: Fundamental Strength - ATGE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [4]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [5]. Group 3: Investment Strategy - The article emphasizes the importance of confirming the sustainability of price trends through sound fundamentals and positive earnings revisions to avoid potential losses [9]. - The "Recent Price Strength" screen is one of several tools available for investors to identify stocks that may yield profitable results [10].

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions [1] - Adtalem Global Education (ATGE) is highlighted as a potential value investment opportunity [4][6] Valuation Metrics - ATGE's Price-to-Book (P/B) ratio is 2.32, which is lower than the industry average of 3.20 [2] - Over the past 12 months, ATGE's P/B ratio fluctuated between 1.30 and 2.47, with a median of 1.87 [2] - The stock's Price-to-Earnings (P/E) ratio is 13.67, compared to the industry's average of 16.33 [4] - ATGE's Forward P/E ratio ranged from 8.93 to 14.91 over the past 52 weeks, with a median of 12.32 [4] Investment Ratings - ATGE holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4][5] - The Zacks Style Scores system identifies stocks with high Value grades and strong Zacks Ranks as top value picks [5] Earnings Outlook - The strength of ATGE's earnings outlook contributes to its classification as an impressive value stock [6]

Industry Overview - The U.S. education market is expected to experience significant growth by 2025, driven by changes in industry demand, government initiatives, and technological advancements [1] - The U.S. higher education market, valued at $6 billion in 2024, is projected to grow to $16.8 billion by 2033, with a CAGR of 12.2% from 2025 onward [2] - Government initiatives, including student loans and funding for community colleges, are improving accessibility and affordability in high-demand fields like data science and cybersecurity [3] Growth Drivers - The rise of e-learning platforms is enabling institutions to offer a broader range of programs without the limitations of physical infrastructure, catering to students seeking flexible, career-aligned educational pathways [2] - The use of AI in education is increasing, enhancing personalized learning and preparing students for STEM careers [5] - The influx of international students is expected to contribute to the competitiveness and expansion of the U.S. education market [6] - There is a growing demand for healthcare education due to a shortage of skilled professionals, prompting education providers to expand programs in nursing and medical technology [7] - Alternative credentials, such as certificates and apprenticeships, are becoming popular as students prioritize flexible and cost-effective learning options [8] Company Insights - Several for-profit education stocks are identified as poised to benefit from the growing demand for specialized education, including Stride, Inc. (LRN), Universal Technical Institute, Inc. (UTI), Strategic Education, Inc. (STRA), Lincoln Educational Services Corporation (LINC), and Adtalem Global Education Inc. (ATGE) [9] - Stride, Inc. has seen a 76.9% increase in stock price over the past year, with an expected earnings growth of 41.6% for fiscal 2025 [10] - Universal Technical Institute has experienced a 119.9% stock price increase, with a projected earnings growth of 29.3% for fiscal 2025 [11] - Strategic Education has a stock price increase of 3.9% and an expected earnings growth of 17.7% for 2025 [12] - Lincoln Educational Services has risen 55.8% in stock price, with an expected earnings growth of 27.8% for 2025 [13] - Adtalem Global Education has rallied 45% in stock price, with an expected earnings growth of 17.6% for fiscal 2025 [14]

The U.S. education sector has seen diverse growth fueled by factors such as the growing popularity of e-books, the expansion of online learning platforms, increased demand for healthcare professionals, advancements in technology, the adoption of hybrid teaching models, and strategic acquisitions targeting global expansion. Despite these advancements, companies within the Zacks Schools industry face challenges, including higher advertising and marketing costs, expenses tied to online education, and the emerg ...

Net profit, also referred to as the bottom line, is one of the key tools to determine the financial health of an enterprise. The metric demonstrates a company’s ability to convert per-dollar sales into profits.A low profit margin indicates higher risks, implying that a revenue drop might dampen profits, thus pushing a company into the red. Graham Corporation (GHM) , Qifu Technology, Inc. (QFIN) , Adtalem Global Education Inc. (ATGE) and Strategic Education, Inc. (STRA) , however, boast solid net profit marg ...

Have you been paying attention to shares of Adtalem Global Education (ATGE) ? Shares have been on the move with the stock up 11.3% over the past month. The stock hit a new 52-week high of $85.26 in the previous session. Adtalem Global Education has gained 39.3% since the start of the year compared to the 5.9% move for the Zacks Consumer Discretionary sector and the 5.1% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, ...

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Recent Price Strength Screen - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Stocks that pass this screen are typically trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [2]. Group 2: Adtalem Global Education (ATGE) - Adtalem Global Education (ATGE) has shown a solid price increase of 20.3% over the past 12 weeks, reflecting investor confidence in its potential upside [3]. - The stock has also increased by 11.3% over the last four weeks, indicating that the upward trend is still intact [4]. - ATGE is currently trading at 92.4% of its 52-week high-low range, suggesting it may be on the verge of a breakout [4]. Group 3: Fundamental Strength - ATGE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. - The Average Broker Recommendation for ATGE is 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Investment Opportunities - Besides ATGE, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting potential investment opportunities [7]. - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles for finding winning stock picks [7].