Core Viewpoint - New Oriental Education (EDU) has shown strong performance in the Consumer Discretionary sector, outperforming its peers significantly in year-to-date returns [1][4]. Company Performance - New Oriental Education has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3]. - The Zacks Consensus Estimate for EDU's full-year earnings has increased by 5.6% in the past quarter, reflecting improved analyst sentiment [4]. - Year-to-date, EDU has returned 15.4%, while the average return for Consumer Discretionary stocks has been a loss of 5.2%, showcasing its superior performance [4]. Industry Context - New Oriental Education is part of the Schools industry, which consists of 17 stocks and currently ranks 84 in the Zacks Industry Rank [6]. - The average return for stocks in the Schools industry has been 5.9% this year, indicating that EDU is performing better than the industry average [6]. - In comparison, another stock in the Consumer Discretionary sector, Sleep Number (SNBR), has a year-to-date return of 39.6% and a Zacks Rank of 2 (Buy) [5].

Core Viewpoint - New Oriental Education Technology (EDU.US; 9901.HK) has shown significant improvement in its financial performance, with a notable increase in operating profit and revenue growth, indicating a potential recovery in the education sector despite regulatory challenges [2][4]. Financial Performance - For the second quarter of fiscal year 2026, New Oriental reported revenue of $1.191 billion, a year-on-year increase of 14.7% [4]. - Operating profit reached $66.3 million, reflecting a substantial year-on-year increase of 244.4% [4]. - Net profit attributable to shareholders was $45.5 million, marking a 42.3% increase compared to the previous year [4]. Profitability Improvement - Despite a 1.1% decrease in sales and marketing expenses to $194 million, overall operating costs rose by 10.4% year-on-year [5]. - General and administrative expenses increased by 15.2%, primarily due to a significant rise of 156.8% in stock-based compensation [5]. - The Non-GAAP operating profit margin improved to 7.5%, up over 4 percentage points from the previous year, attributed to enhanced operational efficiency and resource utilization in the education business [5]. New Education Business Growth - The new education business segment saw a 21.6% year-on-year revenue growth, with non-academic tutoring courses launched in approximately 60 cities, attracting around 1.058 million students [5]. - The active paid user count for the smart learning system and devices reached approximately 352,000 [5]. - The cost structure of the new education business differs from traditional K12 training, allowing for lower marginal costs per student and improved resource efficiency through the OMO (online-merge-offline) model [5]. Market Demand Recovery - In the traditional core business, revenue from overseas exam preparation increased by about 4.1% year-on-year, showing improvement from a 1% increase in the previous quarter [6]. - Domestic exam preparation for adults and college students recorded a year-on-year growth of approximately 12.8% [6]. - The company has raised its full-year revenue guidance for fiscal year 2026 to a range of $5.3 billion to $5.5 billion, expecting a year-on-year growth of 11% to 14% in the third fiscal quarter [6]. Market Valuation - New Oriental's current price-to-earnings ratio is approximately 25.7 times, significantly higher than the 7.6 times of its competitor, China Education Group [7]. - This premium valuation reflects market expectations for growth, supported by visible profit recovery and cash flow improvement [7]. - If the new education and adult training businesses can continue to expand and maintain profit margin improvements, the current valuation may be justified [7].

Market Overview - The three major U.S. stock indices closed lower, with the Dow Jones down 0.34%, the Nasdaq down 1.43%, and the S&P 500 down 0.83% [1] - Popular technology stocks experienced declines, with Broadcom falling over 3%, and Microsoft, Nvidia, and Meta each dropping over 2% [1] Sector Performance - The rare earth, non-ferrous metals, and precious metals sectors saw significant gains, with gold resources rising over 20%, Southern Copper up over 11%, Americas Silver up over 8%, and Pan American Silver up over 5% [1] - Conversely, application software, cryptocurrency, and weight loss drug stocks faced notable declines, with Novo Nordisk down over 14%, Coinbase and Circle each down over 4%, and Eli Lilly and Pfizer each down over 3% [1] Notable Company Movements - Walmart's stock increased by 2.94%, marking its market capitalization surpassing the $1 trillion milestone for the first time [1] - The Nasdaq Golden Dragon China Index fell by 0.94%, with significant declines in popular Chinese stocks such as Daqo New Energy down 5.6%, Bilibili down 4%, and Kingsoft Cloud down 3.5% [1] - Alibaba dropped 2.9%, while NIO rose 0.8%, Pony.ai increased by 2%, Huazhu up 2.2%, New Oriental up 2.3%, Li Auto up 2.7%, Canadian Solar up 4.1%, and Xpeng up 4.3% [1]

New Oriental Education (EDU) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this educational services provider reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlat ...

Core Viewpoint - The article discusses the momentum investing strategy, highlighting New Oriental Education (EDU) as a promising stock with a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [2][3][12]. Company Performance - New Oriental Education's shares have increased by 4.7% over the past week, while the Zacks Schools industry has decreased by 1.41% during the same period [6]. - Over the last quarter, shares of EDU have risen by 12.52%, and over the past year, they have gained 27.06%, compared to the S&P 500's increases of 2.29% and 16.86%, respectively [7]. - The average 20-day trading volume for EDU is 1,075,201 shares, indicating a bullish sign as the stock is rising with above-average volume [8]. Earnings Outlook - In the past two months, four earnings estimates for EDU have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $3.56 to $3.74 [10]. - For the next fiscal year, four estimates have also moved upwards without any downward revisions [10]. Investment Recommendation - Given the positive momentum indicators and earnings outlook, New Oriental Education is recommended as a strong buy for investors looking for short-term opportunities [12].

Core Viewpoint - Investors in the Schools sector should consider New Oriental Education (EDU) and Universal Technical Institute (UTI), with EDU currently presenting a better value opportunity [1] Group 1: Zacks Rank and Earnings Outlook - New Oriental Education has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Universal Technical Institute has a Zacks Rank of 5 (Strong Sell) [3] - The Zacks Rank system favors stocks with positive revisions to earnings estimates, suggesting that EDU has an improving earnings outlook [3] Group 2: Valuation Metrics - EDU has a forward P/E ratio of 16.61, significantly lower than UTI's forward P/E of 37.77, indicating that EDU may be undervalued [5] - EDU's PEG ratio is 0.89, while UTI's PEG ratio is 2.52, further suggesting that EDU is a more attractive investment based on expected earnings growth [5] - EDU's P/B ratio is 2.33 compared to UTI's P/B of 4.81, reinforcing the notion that EDU is the superior value option [6] Group 3: Value Grades - EDU has a Value grade of A, while UTI has a Value grade of D, highlighting the significant difference in their valuation metrics and earnings outlook [6]

新东方港股今日大涨6.4%，带动新东方(EDU.US)美股盘前涨3%。自公司公布业绩以来股价表现活跃。 消息上，绩后获多家机构唱好。海通国际最新发布研报称，新东方2026财年次季总营收年增15%至 11.91亿美元，超出市场一致预期3%，且突破公司此前9%至12%的指引上限。该行对新东方2026财年 Non-Gaap净利润率仍采用18倍市盈率进行估值。麦格理发表报告指，新东方旗下核心教育业务与东方 甄选业务共同推动2026财年第二季度利润率胜预期。美股目标价由48.3美元上调至50美元。大和发表研 报指，新东方2026财年次季度业绩胜市场预期，主要受惠于其教育业务盈利能力改善及东方甄选的贡 献。该行将新东方2027至2028年每股盈利预测上调0.4%至1.4%，重申港股"买入"评级。 | EDU 新东方 | | | | --- | --- | --- | | 62.080 + +1.700 +2.82% | | 收盘价 02/02 16:00 美东 | | 64.000 ↑ 1.920 +3.09% | | 盘前价 02/03 04:16 美东 | | 三 71 24 华 S 9 日 ♥ 白选 | | ● 快 ...

每经AI快讯，新东方-S(09901.HK)涨近5%，截至发稿，涨4.8%，报49.3港元，成交额3.24亿港元。 （文章来源：每日经济新闻） ...

消息面上，新东方近日发布截至2025年11月30日止的2026财年第二季度财务业绩公告，净营收同比上升 14.7%至11.91亿美元；经营利润同比上升244.4%至6630万美元；股东应占净利润同比上升42.3%至4550 万美元。公司上调2026财年全年净营收指引至52.92-54.88亿美元，同比增长8%-12%。 摩根大通重申新东方"增持"评级及首选股份地位，目标价由53港元升至55港元。大和认为，新东方2026 财年次季度业绩胜市场预期，主要受惠于其教育业务盈利能力改善及东方甄选的贡献。重申"买入"评 级，目标价由53港元升至57港元。美银证券则将其H股目标价由52.3港元升至55.6港元。 新东方-S(09901)涨近5%，高见49.36港元创逾1年新高。截至发稿，涨4.8%，报49.3港元，成交额3.24亿 港元。 ...

消息面上，新东方近日发布截至2025年11月30日止的2026财年第二季度财务业绩公告，净营收同比上升 14.7%至11.91亿美元；经营利润同比上升244.4%至6630万美元；股东应占净利润同比上升42.3%至4550 万美元。公司上调2026财年全年净营收指引至52.92-54.88 亿美元，同比增长8%-12%。 摩根大通重申新东方"增持"评级及首选股份地位，目标价由53港元升至55港元。大和认为，新东方2026 财年次季度业绩胜市场预期，主要受惠于其教育业务盈利能力改善及东方甄选的贡献。重申"买入"评 级，目标价由53港元升至57港元。美银证券则将其H股目标价由52.3港元升至55.6港元。 智通财经APP获悉，新东方-S(09901)涨近5%，高见49.36港元创逾1年新高。截至发稿，涨4.8%，报49.3 港元，成交额3.24亿港元。 ...