Investment Opportunities & Company Highlights - Zebra variety tomatoes are highlighted as an outstanding product [1] - Carmen Holdings, a recent IPO in February, is mentioned as a company worth considering, potentially in the missile defense sector [2] - Leonardo DRS is identified as the kind of company that is making a lot of people a lot of money [3] - Lincoln Technical Institute (LCI) is suggested as a potentially great long-term investment if Trump invests millions or billions in technical schools [6] Market Commentary & Investment Strategy - A 42% tariff is mentioned [1] - The speaker expresses a preference for growth stocks over high-yield securities with unclear holdings, specifically mentioning being against Annley Capital Management for many years [5] - Analyst downgrades of stocks that have had big runs will be discussed [7] Events & Community Engagement - An annual meeting in New York City is mentioned as a "once-in-a-lifetime opportunity" [3] - The Lightning Round is sponsored by Charles Schwab [6]

Group 1 - Lincoln Educational Services Corporation (LINC) is part of the Consumer Discretionary group, which consists of 256 companies and currently ranks 10 in the Zacks Sector Rank [2] - LINC has a Zacks Rank of 2 (Buy), indicating a positive outlook, with the consensus estimate for its full-year earnings increasing by 5.9% over the past quarter [3] - Year-to-date, LINC has achieved a return of approximately 45.7%, significantly outperforming the average gain of 11.7% for the Consumer Discretionary sector [4] Group 2 - LINC belongs to the Schools industry, which includes 18 stocks and is currently ranked 11 in the Zacks Industry Rank, with an average gain of 9.2% this year [5] - In comparison, another stock in the Consumer Discretionary sector, Carnival (CCL), has a year-to-date return of 12.8% and is part of the Leisure and Recreation Services industry, which is ranked 79 and has gained 4.4% year to date [4][6]

Group 1 - Inspirato Incorporated (ISPO) is part of the Consumer Discretionary sector, which includes 255 stocks and has a Zacks Sector Rank of 12 [2] - ISPO has a Zacks Rank of 2 (Buy), with a 35.1% increase in the consensus estimate for its full-year earnings over the past quarter, indicating positive analyst sentiment [3] - ISPO has gained approximately 17.8% year-to-date, outperforming the average return of 6.3% for Consumer Discretionary companies [4] Group 2 - Inspirato Incorporated belongs to the Leisure and Recreation Services industry, which consists of 30 stocks and is currently ranked 86 in the Zacks Industry Rank; this industry has seen a decline of about 1.6% year-to-date [6] - In contrast, Lincoln Educational Services Corporation, another stock in the Consumer Discretionary sector, has a year-to-date return of 36.7% and is part of the Schools industry, which is ranked 18 [4][7]

Summary of Lincoln Educational Services (LINC) FY Conference Call Company Overview - Lincoln Educational Services operates under the ticker symbol LINC on NASDAQ and is the largest and oldest organization in the U.S. focused on trade skills education [1][2][3] Industry Context - There is a significant skills gap in the labor market, particularly for hands-on trade skills such as welding, electrical work, mechanics, and nursing, which have been deemed essential during the COVID-19 pandemic [2][3] - The company has shifted from being counter-cyclical to experiencing accelerated growth due to a fundamental change in market demand for skilled workers [4][30] Financial Performance - The company remains debt-free, with no bank debt, only lease obligations, and has $60 million available for growth opportunities [5] - Projected revenue by 2027 is $550 million with an EBITDA of $90 million, reflecting an 11% growth in the top line and a 200 basis points improvement in margins annually [14][15] - In Q1, revenue increased by $16 million, and starts were up 20% [49][51] Growth Strategy - The growth strategy includes organic growth through effective marketing and replicating successful programs across campuses [8][10] - The company has transitioned to a hybrid model, with 30% of programs online and 70% on-ground, which has increased efficiency and student flexibility [6][16] - New campuses are being opened, including a new facility in Houston and a relocation of the Nashville campus, with plans for a Long Island campus in 2026 [10][24][53] Program Focus - Lincoln has exited non-essential programs (e.g., culinary, cosmetology) to focus on high-demand trades that offer better earning potential for graduates [20][31] - The average age of students is 25, with many balancing work and family commitments, making the hybrid model attractive [7][26] Market Position - Lincoln is the largest provider of auto technicians and tradespeople east of the Mississippi and has less than 2% market share in the fields it trains for, indicating significant growth potential [32][33] - The company is focused on middle-skill jobs, which require more training than high school but less than a four-year degree, aligning with current labor market needs [25][28] Corporate Partnerships - Partnerships with companies like Tesla and Johnson Controls enhance job placement opportunities for graduates and provide industry-specific training [40][42] - Corporate partners may fund tuition, provide job placements, or donate equipment, creating a diverse funding model [63] Regulatory Environment - The company operates under strict regulations, with 82% of revenue coming from government funding, well below the 90% cap [44] - The cohort default rate is currently zero due to a pause in student loan repayments, but this is expected to change as repayments resume [45] Conclusion - Lincoln Educational Services is well-positioned for growth in the trade education sector, with a strong focus on essential skills, a robust financial outlook, and a commitment to adapting to market demands [57][58]

Core Viewpoint - The comparison between Perdoceo Education (PRDO) and Lincoln Educational Services Corporation (LINC) indicates that PRDO currently offers better value for investors based on various financial metrics [1]. Group 1: Company Overview - Both PRDO and LINC have a Zacks Rank of 2 (Buy), suggesting positive earnings estimate revisions and improving earnings outlooks for both companies [3]. - Value investors analyze a range of traditional figures and metrics to assess whether a company is undervalued at its current share price levels [4]. Group 2: Valuation Metrics - PRDO has a forward P/E ratio of 13.25, while LINC has a significantly higher forward P/E of 32.01 [5]. - The PEG ratio for PRDO is 0.88, indicating a more favorable valuation compared to LINC's PEG ratio of 2.13 [5]. - PRDO's P/B ratio stands at 2.23, compared to LINC's P/B ratio of 4.10, further supporting PRDO's superior valuation metrics [6]. - Based on these valuation figures, PRDO is rated with a Value grade of A, while LINC has a Value grade of C [6].

Core Insights - Lincoln Educational Services Corporation (LINC) has seen a significant increase in 'student start' numbers since February 2021, leading to a share price rally of over 280% [1] Investment Strategy - The investment approach focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt, while also considering writing calls against positions for additional income [1]

Company Overview - Inspirato Incorporated (ISPO) is a notable stock within the Consumer Discretionary sector, which consists of 255 individual stocks [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable investment outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, Inspirato has achieved a return of approximately 5.4%, outperforming the average return of 3% for the Consumer Discretionary sector [4] - The Zacks Consensus Estimate for ISPO's full-year earnings has increased by 35.1% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Industry Context - Inspirato is part of the Leisure and Recreation Services industry, which includes 31 companies and currently ranks 88 in the Zacks Industry Rank [6] - The Leisure and Recreation Services industry has experienced a decline of about 7.1% year-to-date, indicating that ISPO is performing better than its industry peers [6] Comparison with Peers - Lincoln Educational Services Corporation (LINC), another stock in the Consumer Discretionary sector, has returned 39.2% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Schools industry, to which LINC belongs, is currently ranked 27 and has seen an average increase of 8% year-to-date [7]

Industry Overview - The Zacks Schools industry is experiencing a rebound driven by increased demand for career-focused programs in healthcare, skilled trades, cybersecurity, and IT, supported by a labor market that values job-ready skills and government initiatives promoting non-degree pathways [1][4] - The industry is addressing the critical shortage of healthcare workers through rigorous, workforce-aligned training programs [5] Trends Influencing the Industry - Digital innovation is a key driver of differentiation, with companies investing in adaptive learning tools and scalable online platforms to enhance engagement and support flexible learning for working adults [2][7] - 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 over traditional degrees [4] - The sector is witnessing consolidation, with larger players acquiring niche or financially weaker institutions to expand offerings and improve scale [6] Financial Performance and Market Position - The Zacks Schools industry currently ranks 30 within the broader Zacks Consumer Discretionary sector, 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 to $1.38 per share from $1.37 since April 2025, reflecting growing analyst confidence in the group's earnings growth potential [12] Enrollment and Revenue Growth - For-profit providers are expected to see enrollment and revenue growth in 2025, driven by demographic tailwinds, state and federal support for vocational education, and digital innovation [2] - Companies like Stride, Inc., Laureate Education, Inc., and American Public Education, Inc. are positioned to benefit from these trends, with significant enrollment growth reported [21][29][25] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings ratio of 16.86X, compared to the S&P 500's 21.81X and the sector's 19.73X, indicating potential undervaluation [17][20] Company Highlights - Stride, Inc. reported a 20% rise in total enrollment, with a 12.8% increase in General Education and a 32% increase in Career Learning [21] - American Public Education has seen a 60.2% stock increase over the past year, with earnings expected to grow 150.9% in 2025 [25] - Laureate Education's fully online programs account for about 20% of its student base, growing at three to four times the pace of face-to-face programs [28] - Perdoceo Education has benefited from a 10.6% enrollment increase at Colorado Technical University, driven by strong student engagement [32] - Lincoln Educational Services has achieved an 82.4% stock increase over the past year, supported by strong enrollment growth and operational efficiencies [36]

Financial Performance & Growth Strategy - Lincoln's Q1 2025 revenue reached $117.5 million, marking a $16.2 million increase compared to the previous year[71] - Adjusted EBITDA for Q1 2025 was $10.6 million, a $4.1 million increase year-over-year[71] - The company projects 2027 revenue to reach $550 million and adjusted EBITDA to $60.5 million[9] - Lincoln anticipates net income of approximately $36 million and EPS of $1.13 by 2027[9] - The company's growth strategy includes new program development, strategic acquisitions, and new school construction to expand market share and diversify program offerings[7] Hybrid Learning Model & Campus Expansion - Lincoln's hybrid learning model aims to expand capacity at existing campuses and generate instructional cost savings[13] - New campuses are expected to generate approximately $6 million of EBITDA 36 months after opening[7] - A new campus pro-forma hybrid learning model anticipates approximately $4.5 million of EBITDA loss prior to opening, with profitability within two years of class start and an average population of approximately 700 students by Year 4[15] - Capital expenditures for new and relocated campuses and new programs are projected at $60 million in 2025[90] Market Position & Compliance - Over 95% of Lincoln's students are pursuing careers considered essential critical infrastructure workers by the U S Department of Homeland Security[21] - The company's 90/10 actual ratio is 82% overall, indicating strong revenue from non-federal financial aid sources[50] - Lincoln maintains a composite score of 2.5, reflecting overall financial health[50]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - Lincoln Educational Services Corporation (LINC) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2][9] Group 2: Earnings Growth - The historical EPS growth rate for Lincoln Educational Services is 10.3%, but projected EPS growth for this year is expected to be 28.6%, surpassing the industry average of 23.8% [4][3] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Lincoln Educational Services is currently at 41%, significantly higher than the industry average of 3.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 22.9%, compared to the industry average of 9.2% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Lincoln Educational Services, with the Zacks Consensus Estimate for the current year increasing by 5.9% over the past month [7]