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].

Adtalem Global Education Inc. (ATGE) posted better-than-expected results in first-quarter fiscal 2025. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given strong enrollment growth and strategic initiatives. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Adtalem registered strong quarterly performance, which was led by significant gains at Chamberlain University and Walden University. These gains were due to continued demand ...

Financial Data and Key Metrics Changes - Revenue for the quarter reached $417 million, reflecting a 13% increase compared to last year [8] - Adjusted EBITDA margin expanded by 140 basis points, leading to a 39% jump in adjusted earnings per share to $1.29 [8][25] - Adjusted net income for the quarter was $50.5 million, up 28.3% compared to last year [27] Business Line Data and Key Metrics Changes - Chamberlain reported first quarter revenue of $167.9 million, an increase of 17.8% compared to the prior year, driven by a total student enrollment increase of 11.7% [28] - Walden's first quarter revenue was $161.5 million, a 14.1% increase year-over-year, with total student enrollment up 12.2% [31] - Medical and Veterinary segment revenue increased by 3.9% to $88 million, with total enrollment growth trend improving [33] Market Data and Key Metrics Changes - Total enrollment improved for the 10th consecutive quarter, up 11.2% year-over-year, bringing total enrollment to over 90,000 students [9] - Chamberlain's BSN online option is now available in 36 states with over 2,000 students enrolled [14] - Walden remains a national leader in nursing with over 16,000 nursing students currently enrolled [16] Company Strategy and Development Direction - The company has commenced year two of its three-year "Growth with Purpose" strategy, focusing on operational excellence and generating substantial value for stakeholders [7] - Investments in marketing and student support are aimed at maintaining high persistence rates and enhancing the student experience [30][47] - The company is expanding its reach through partnerships and innovative programs, including a new partnership with the Oncology Nursing Society [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future enrollment trends and the strong demand for medical education in the U.S. [20] - The fiscal year 2025 guidance has been raised to project revenue between $1.69 billion and $1.73 billion, with adjusted earnings per share of $5.75 to $5.95 [21][38] - Management noted that the marketing investments are expected to deliver positive returns through increased future demand and strong persistence [30][51] Other Important Information - Free cash flow for the first three months of fiscal year 2025 was $79 million, with a trailing 12-month free cash flow of $243 million [35] - The balance sheet remains healthy, ending the first quarter with $265 million in cash and equivalents [36] - The company repurchased 462,000 shares during the quarter, continuing its share repurchase authorization [37] Q&A Session Summary Question: Growth acceleration at Chamberlain - Management noted positive trends in new enrollment, particularly in the post-licensure RN/BSN category, and believes this trend is sustainable [42][43] Question: Marketing expense allocation - Marketing resources are allocated dynamically based on attractive opportunities, with a significant portion shifted to Q2 [44][45] Question: Revenue growth and operating leverage - Despite increased marketing investments, management indicated that there are additional investments in student support impacting operating leverage [46][47] Question: Full year guidance and risk factors - Management clarified that the full year guidance reflects an improved outlook for revenue, with strong momentum across new enrollment [58][59]