Core Insights - Stride, Inc. is recognized as one of the best bear market stocks to buy, focusing on personalized online learning and career education programs [1] - The company is currently facing legal and regulatory challenges, including allegations of fraud and deceptive practices related to enrollment reporting [2] - Despite these challenges, Stride's underlying business performance remains strong, with significant revenue growth and increased student enrollments [3][4] Legal and Regulatory Challenges - In September 2025, Stride, Inc. faced a complaint from the Gallup-McKinley County Schools Board of Education, alleging inflated enrollment numbers and insufficiently licensed teachers [2] - The allegations have led to federal securities investigations and a stock price drop of approximately 11% [2] Business Performance - In Q4 FY25, Stride reported a 22.4% year-over-year revenue growth and over 20% increase in student enrollments, primarily driven by career learning programs [4] - Prior to the legal issues, the company's stock was on a solid upward trajectory, reflecting consistent growth in the online education market [4]

Core Viewpoint - Pomerantz LLP is investigating claims against Stride, Inc. regarding potential securities fraud and unlawful business practices following allegations from the Gallup-McKinley County Schools Board of Education [1][2]. Group 1: Investigation Details - Pomerantz LLP is representing investors of Stride, Inc. and is looking into claims of securities fraud and other unlawful business practices by the company and its officers [1]. - The investigation was prompted by a complaint filed by the Gallup-McKinley County Schools Board of Education, which alleges that Stride engaged in fraud, deceptive trade practices, and systemic violations of law, including inflating enrollment numbers by retaining "ghost students" [2]. Group 2: Financial Impact - Following the news of the allegations, Stride's stock price dropped by $18.60 per share, or 11.75%, closing at $139.76 per share on September 15, 2025 [2].

Core Viewpoint - Stride, Inc. faces significant market backlash following a formal complaint from Gallup-McKinley school district alleging fraud and deceptive practices, leading to a notable decline in its stock price [1][6]. Company Overview - Stride, Inc. is an education technology company that provides an online learning platform primarily funded by taxpayer dollars through sales to virtual and blended public schools [3]. Allegations and Investigations - The complaint alleges that Stride engaged in fraudulent activities, including inflating student enrollment figures and prioritizing profit over educational compliance [1][5]. - Hagens Berman, a national shareholders rights firm, has initiated an investigation into whether Stride misled investors regarding its business practices and disclosure controls [2][4]. - Specific allegations include: - Contracting violations by disregarding New Mexico state laws to secure contracts improperly [8]. - Inflating reported student enrollment by including students who never officially started or were absent for extended periods [8]. - Increasing student-to-teacher ratios to boost profit margins and employing inadequately licensed teachers [8]. - Engaging in market manipulation through unlawful business practices to inflate stock values [8]. Market Reaction - Following the news of the complaint, Stride's stock price dropped by $18.60, or 11%, indicating severe market reaction to the allegations [6].

Core Insights - Stride, Inc. (LRN) is focusing on expanding its online and blended education offerings, particularly in Career Learning programs aimed at equipping middle and high school students with workforce-ready skills while maintaining academic progress [1][4] Financial Performance - In fiscal 2025, the Career Learning segment's total revenues increased by 27.4% year over year, driven by a 33% rise in enrollments, serving over 96,300 students [2][8] - The General Education segment remains a larger revenue source, but the rapid growth in Career Learning indicates a potential shift in the company's long-term revenue mix [2] Strategic Initiatives - The company is investing in career pathways, including tutoring initiatives and programs that connect students to practical resources, enhancing family outcomes and engagement with school districts and state partners [3][8] - Favorable funding trends at the state level are expected to support the growth trajectory of Career Learning [3] Market Position - Stride's stock has increased by 36.9% year to date, outperforming the Zacks Schools industry, the broader Zacks Consumer Discretionary sector, and the S&P 500 index [5] - Other education firms like Adtalem Global Education and American Public Education have also seen significant stock price increases, with gains of 58.6% and 71.2% respectively [7] Valuation Metrics - Stride's stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 16.25, indicating a premium compared to industry peers [9] - Adtalem and American Public are trading at forward 12-month P/E ratios of 18.11 and 19.43 respectively [11] Earnings Estimates - LRN's earnings estimates for fiscal 2026 have been revised upward to $8.58 per share, reflecting a year-over-year growth of 5.9% [12]

Core Insights - Tallo has surpassed 2 million users, highlighting the increasing demand for technology-driven career planning tools [1][5] - A significant portion of young adults remain uncertain about their career paths, with nearly two-thirds unsure and one in four struggling to find jobs in their desired fields [2][3] - Tallo provides a comprehensive suite of resources, including career exploration, skill-building, and direct employer connections, catering to diverse educational and career goals [3][5] User Demographics and Needs - Tallo's user base consists of individuals aged 13 to 30, reflecting a wide range of career aspirations and educational backgrounds [3][5] - The platform addresses concerns about student debt and rising living costs, which are prevalent among young adults navigating their career choices [2][3] Services and Features - Tallo offers exploration of 1,800 careers across 170 pathways, real-time labor market insights, a scholarship search tool with over 20,000 opportunities, digital portfolio building, and direct connections to employers [6] - The platform supports users in various stages of career development, from high school students to adults re-entering the workforce [3][5]

Core Insights - Stride, Inc. (LRN) and Bright Horizons Family Solutions Inc. (BFAM) are pursuing distinct expansion strategies in the education sector, with Stride focusing on virtual K-12 education and Bright Horizons on childcare and family support services [1][2] Stride, Inc. (LRN) - Stride is experiencing significant growth in the school choice market, with Q4 fiscal 2025 revenues increasing by 22% year-over-year to $654 million, driven by enrollment growth in both General Education and Career Learning [4] - Career Learning enrollments rose by 33% year-over-year to over 96,000, while General Education enrollments increased by 13% to nearly 138,000, contributing to full-year revenues of $2.4 billion, an 18% increase year-over-year [4][8] - The company is heavily investing in technology to enhance student outcomes, expanding tutoring programs and focusing on responsible artificial intelligence to create engaging online learning experiences [5] - Despite growth, Stride's adult learning business faced challenges, particularly in technology-related programs, and the company anticipates moderated margin expansion in fiscal 2026 due to new investments [6] - The outlook for fiscal 2026 is positive, with projected enrollment growth of 10-15% in Q1, supported by strong application volumes and favorable funding conditions [7] Bright Horizons Family Solutions Inc. (BFAM) - Bright Horizons reported a 9% year-over-year revenue growth to $732 million in Q2 2025, driven by steady enrollment gains and tuition increases [8] - Full-service childcare accounted for the majority of revenues, growing by 7%, while backup care and educational advisory services increased by 19% and 8%, respectively [8][9] - The company is expanding its network by opening new centers and strengthening employer partnerships, which enhances client engagement and deepens its market position [10] - However, Bright Horizons faces challenges with occupancy rates in childcare centers, which remain below pre-pandemic levels, impacting overall utilization [11] - The company raised its full-year revenue guidance to $2.9-$2.92 billion, reflecting an expected 8-9% year-over-year growth, with continued strength anticipated in backup care services [12] Stock Performance & Valuation - Year-to-date, Stride's share price performance has outpaced that of Bright Horizons [13] - Stride is currently trading at a premium compared to Bright Horizons based on a forward 12-month price-to-sales ratio [15] - Stride's trailing 12-month return on equity (ROE) stands at 25.5%, significantly higher than Bright Horizons' 16.9%, indicating stronger efficiency in generating shareholder returns [20] Investment Outlook - Stride is positioned as a growth leader in the education sector, supported by strong enrollment momentum and a favorable funding environment, making it a more attractive investment opportunity compared to Bright Horizons [22][24] - Bright Horizons benefits from resilient demand for employer-sponsored childcare services but continues to face occupancy challenges in its centers [23]

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Stride, Inc. ("Stride†or the "Company†) (NYSE: LRN) investors concerning the Company's possible violations of the federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON STRIDE, INC. (LRN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. What Happened? On September 14, 2025, Sim. ...

Key Takeaways Stride posted Q4 revenues of $653.7M, up 22% Y/Y, with EPS of $2.29 beating estimates by 25.1%.Career Learning revenues rose 35% as enrollments climbed 33% in fiscal 2025.Stride is investing in AI and tutoring, which may slow margin growth but drive future gains.Stride, Inc. (LRN) closed fiscal 2025 with another record year, underscoring its momentum in the school choice movement. Fourth-quarter revenues climbed 22% year over year to $653.7 million, while adjusted EPS of $2.29 topped estimates ...

Core Insights - The U.S. stock market reacted positively to the Federal Reserve's decision to lower its benchmark interest rate by 0.25 percentage points to a range of 4-4.25%, aiming to stimulate growth while managing inflation [1][11] - The Dow Jones Industrial Average increased by 124.10 points (0.27%) to 46,142.42, the S&P 500 rose by 31.61 points (0.48%) to 6,631.96, and the Nasdaq Composite gained 209.40 points (0.94%) to 22,470.72 [2] Interest Coverage Ratio - Companies with strong interest coverage ratios are expected to benefit from lower borrowing costs, as these ratios indicate a firm's ability to meet interest obligations comfortably [3][6] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, and a ratio below 1 suggests potential default risk [5][8] - Companies highlighted for their strong interest coverage ratios include Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and The Progressive Corporation (PGR) [4][11] Company Performance and Projections - Stride, Inc. is projected to see sales and EPS growth of 11% and 5.9% respectively, with a stock price increase of 65.7% over the past year [14] - Ralph Lauren Corporation anticipates sales and EPS growth of 6% and 19.8% respectively, with a stock price increase of 69.4% over the past year [15] - Encompass Health Corporation expects sales and EPS growth of 10.2% and 18.3% respectively, with a stock price increase of 35.3% over the past year [16] - The Progressive Corporation projects sales and EPS growth of 16.4% and 26.8% respectively, although its stock price has declined by 6.7% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][13] - Stocks that meet these criteria are likely to outperform in various market conditions, with a focus on those with strong historical EPS growth and substantial trading volume [10][12]

Core Viewpoint - An investigation has been announced regarding Stride, Inc. for potential violations of federal securities laws, indicating possible legal issues that may affect the company's investors [1]. Company Summary - Stride, Inc. (NYSE: LRN) is currently under scrutiny for its compliance with federal securities regulations, which may lead to claims from investors who have experienced financial losses [1]. - The Law Offices of Howard G. Smith are actively seeking to assist affected investors in pursuing claims to recover their losses related to Stride, Inc. [1].