Company Performance - Dunelm Group (DNLMY) has shown a year-to-date performance increase of approximately 13.8%, significantly outperforming the average return of 2.6% in the Consumer Discretionary sector [4] - The Zacks Consensus Estimate for Dunelm Group's full-year earnings has increased by 2.4% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Context - Dunelm Group is part of the Textile - Home Furnishing industry, which currently ranks 15 in the Zacks Industry Rank, with the industry experiencing a decline of about 5.8% year-to-date [5] - In comparison, Perdoceo Education, another Consumer Discretionary stock, has returned 9.1% year-to-date, but it belongs to the Schools industry, which is ranked 94 and has seen a decline of 2% this year [4][6] Zacks Rank - Dunelm Group holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on earnings estimates and revisions [3] - The Zacks Rank system has a history of identifying stocks that are likely to outperform the market in the short term [3]

Core Insights - The Zacks Schools industry is experiencing a recovery driven by increased demand for applied and career-oriented education, particularly in healthcare, skilled trades, cybersecurity, and IT [1][5] - Technology is becoming a significant competitive advantage, with institutions investing in adaptive learning systems and online platforms to enhance student engagement and operational efficiency [2][8] - The industry is consolidating, with larger providers acquiring smaller institutions to expand offerings and improve operational leverage [6] Industry Overview - The Zacks Schools industry includes for-profit education companies offering various programs in finance, healthcare, technology, and skilled trades, focusing on career-oriented education [4] - The sector is addressing the shortage of healthcare professionals through intensive training models linked to industry needs [1][5] Trends Influencing Growth - 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 [5] - Government initiatives supporting vocational education and non-degree pathways are contributing to the growth outlook [3][5] Financial Performance and Valuation - The Zacks Schools industry has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 Zacks industries, indicating positive near-term prospects [11][12] - The industry's forward 12-month price-to-earnings ratio is currently at 12.58X, significantly lower than the S&P 500's 23.57X, suggesting potential undervaluation [18] Key Companies and Their Prospects - **McGraw Hill**: Experiencing growth from digital and subscription models, with a projected fiscal 2026 earnings of $1.63 per share on $2.05 billion in revenues, reflecting a 300% surprise in the last quarter [21][24] - **Grand Canyon Education**: Focused on scalable online expansion and healthcare programs, with expected earnings growth of 12.9% and 11.2% for 2025 and 2026, respectively [27][28] - **Perdoceo Education**: Benefiting from rising student interest and expanding program offerings, with expected earnings growth of 11.4% and 9% for 2025 and 2026 [31][32] - **Adtalem**: Gaining from enrollment momentum and strategic partnerships, with projected earnings growth of 17.7% and 13.7% for fiscal 2026 and 2027 [35][37] - **Nerdy**: Enhancing its platform with AI integration, with improvements in earnings estimates for 2025 and 2026, indicating a potential investment opportunity [39][40]

Core Viewpoint - Perdoceo Education (PRDO) has experienced significant selling pressure, resulting in a 21.9% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Technical Analysis - The Relative Strength Index (RSI) for PRDO is currently at 26.89, indicating that the stock may be oversold and could be poised for a rebound as selling pressure exhausts [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3] Fundamental Indicators - Analysts have raised earnings estimates for PRDO by 1.2% over the last 30 days, suggesting a positive trend that often correlates with price appreciation [7] - PRDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Core Viewpoint - Perdoceo Education Corporation (NASDAQ:PRDO) is highlighted as a strong investment opportunity in the EdTech sector, with Barrington Research maintaining an Outperform rating and a price target of $42 following the release of Q3 results [1][3]. Financial Performance - Revenue increased by 24.8% to $211.9 million, with earnings per share (EPS) reported at $0.60 GAAP and $0.65 adjusted, alongside an operating income of $51.0 million [2]. - The strong results were attributed to high prospective student interest, retention, and engagement, bolstered by investments in academics, technology, and support processes [2]. Enrollment and Acquisition Impact - The acquisition of the University of St. Augustine for Health Sciences (USAHS) contributed $38.0 million to Q3 revenue and added 4,420 enrollments, which were not present in the previous year [3]. - Total enrollments reached 46,520, reflecting a 15.1% increase, while the company ended the quarter with $668.6 million in cash and investments after returning $30.3 million through buybacks and dividends [3]. Company Overview - Perdoceo Education Corporation offers postsecondary programs through its institutions, including Colorado Technical University, American InterContinental University System, and USAHS, catering to career-focused learners in online and hybrid formats [4].

Core Insights - The comparison between Perdoceo Education (PRDO) and New Oriental Education (EDU) indicates that PRDO may offer better value for investors currently [1][3] Valuation Metrics - PRDO has a forward P/E ratio of 11.92, while EDU's forward P/E is 15.70 [5] - PRDO's PEG ratio stands at 0.79, compared to EDU's PEG ratio of 1.10 [5] - PRDO's P/B ratio is 1.96, whereas EDU has a P/B ratio of 2.25 [6] Earnings Outlook - PRDO is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Viewpoint - Perdoceo Education (PRDO) has faced significant selling pressure, resulting in a 13.4% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) indicates that PRDO is currently in oversold territory with a reading of 26.75, suggesting a potential reversal in stock price [5] - RSI is a momentum oscillator that helps identify overbought or oversold conditions, typically indicating oversold status when below 30 [2][3] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for PRDO by 1.2% over the last 30 days, which often correlates with price appreciation [7] - PRDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have ad-blockers enabled [1]

Core Viewpoint - Perdoceo Education Corporation held its Third Quarter 2025 Earnings Conference Call, indicating ongoing communication with investors and stakeholders regarding financial performance and future outlook [2][3]. Group 1: Earnings Call Details - The conference call was led by Todd Nelson, President and CEO, and Ashish Ghia, CFO, highlighting the leadership's involvement in discussing the company's financial results [2]. - The call was made accessible via a live webcast on the company's Investor Relations website, with a replay available for 90 days, demonstrating the company's commitment to transparency [3]. Group 2: Forward-Looking Statements - The earnings release included forward-looking statements as defined by the Securities Exchange Act, indicating that the company is providing projections based on current assumptions and available information [4]. - The company acknowledged that these forward-looking statements involve risks and uncertainties that could lead to actual results differing from those projected, emphasizing the importance of understanding potential variability in performance [5].

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Adjusted operating income grew by 27.4% to $61 million compared to $47.8 million during the prior year [12] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% increase at CTU and the acquisition of St. Augustine [7][12] - CTU's revenue was $117.1 million, a 4.3% increase from the prior year, while operating income increased 6.7% to $47.8 million [15] - AIU system's revenue remained flat at $56.7 million, but operating income increased due to lower operating expenses [15][16] - St. Augustine recorded third quarter revenue of $38 million, with adjusted operating income expected to grow in 2026 [16] Market Data and Key Metrics Changes - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9] - New student enrollments at St. Augustine increased, particularly in nursing and speech-language pathology programs [14] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company anticipates revenue and total student enrollments to increase in the fourth quarter and for the full year 2025 [15][23] - Adjusted operating income outlook for the full year 2025 is updated to a range between $234 million and $236 million [21][22] Other Important Information - The effective tax rate for the year-to-date period was 26.2%, with expectations for the full year to be between 26% and 26.5% [17] - The company ended the third quarter with $668.6 million in cash and equivalents, an increase of approximately $77.1 million from the year-end position [18] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Adjusted operating income grew by 27.4% to $61 million compared to $47.8 million during the prior year [12] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% increase at CTU and the acquisition of St. Augustine [7][12] - CTU's revenue was $117.1 million, a 4.3% increase from the prior year, while operating income increased 6.7% to $47.8 million [15] - AIU system's revenue remained flat at $56.7 million, but operating income increased due to lower operating expenses [15][16] - St. Augustine recorded third quarter revenue of $38 million, with adjusted operating income expected to grow in 2026 [16] Market Data and Key Metrics Changes - The corporate student programs at CTU and AIU continue to see increasing enrollments, which are a priority for the company [9] - New student enrollments at St. Augustine for the fall term were higher compared to the prior year, particularly in nursing and speech-language pathology programs [14] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company updated its full-year adjusted operating income outlook to a range between $234 million and $236 million, driven by the St. Augustine acquisition and positive trends at CTU and AIU [22][23] - The effective tax rate for the full year 2025 is expected to be between 26% and 26.5%, benefiting from tax provisions related to the St. Augustine acquisition [17] Other Important Information - The company repurchased 660,000 shares for $20.6 million during the quarter, with a total of 2.3 million shares repurchased year-to-date [21] - A quarterly dividend payment of $0.15 per share was declared, payable on December 12, 2025 [19][20] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment [27]