Group 1 - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a beloved strategy that seeks to find undervalued companies through fundamental analysis and traditional valuation metrics [2] - The Style Scores system is introduced as a tool for investors to find stocks with specific traits, particularly in the "Value" category [3] Group 2 - Perdoceo Education (PRDO) is identified as a potential value investment, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [4] - PRDO's P/E ratio is reported at 10.47, significantly lower than the industry average of 14.02, indicating potential undervaluation [4] - The company has a PEG ratio of 0.70, which is comparable to the industry average of 0.71, suggesting favorable growth expectations [5] Group 3 - PRDO's P/B ratio stands at 1.77, which is lower than the industry average of 3.09, further supporting the notion of undervaluation [6] - The P/CF ratio for PRDO is 10.72, compared to the industry's average of 41.77, indicating a solid cash outlook [7] - Overall, the metrics suggest that Perdoceo Education is likely undervalued, making it an attractive value stock at the moment [8]

Perdoceo Education (PRDO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ...

Investors looking for stocks in the Schools sector might want to consider either Perdoceo Education (PRDO) or Lincoln Educational Services Corporation (LINC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and ...

Financial Data and Key Metrics Changes - The company reported fourth quarter net income of $31.5 million, or $0.47 per diluted share, while adjusted earnings per diluted share was $0.50 [18] - Full-year net income was $147.6 million, or $2.19 per diluted share, compared to $147.7 million, or $2.18 per diluted share in the prior year [26] - Adjusted earnings per diluted share increased to $2.29 from $2.10 in the prior year [26] - Full-year operating income rose to $174.3 million, an increase of $23.8 million compared to the prior year [26] Business Line Data and Key Metrics Changes - At CTU, total student enrollments increased by 8.1% compared to the prior year-end [19] - At AIU System, total student enrollments increased by 11.8% as it reverted to normalized operations [19] - Full-year revenue at CTU decreased by 2.6% to $456.9 million, but fourth quarter revenue increased by 9.7% to $114.8 million [33][34] - AIU System's full-year revenue decreased by 11.1% to $213.5 million, while fourth quarter revenue increased by 19.1% to $51.4 million [35] Market Data and Key Metrics Changes - The company experienced total student enrollment growth through 2024, supported by federal student aid initiatives [11] - The acquisition of the University of St. Augustine for Health Sciences is expected to diversify and expand academic offerings in the health sciences field [17] Company Strategy and Development Direction - The company focuses on enhancing student retention and engagement while making selective investments in technology and data analytics [12] - The acquisition of St. Augustine is expected to be accretive to operating income in 2025 and provide further growth in 2026 [17] - The company aims to maintain a balanced capital allocation strategy, prioritizing investments in organic projects and returning capital to shareholders [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting total revenue and enrollments to increase compared to 2024 [32] - The company anticipates that high levels of student retention and engagement will continue, offsetting headwinds from changes in federal student loan initiatives [51] - The effective tax rate for 2025 is expected to be between 25.5% and 26.5% [41] Other Important Information - The company returned approximately $38.5 million to shareholders through dividends and stock buybacks during 2024 [15] - Cash flow from operations for the full year was $161.6 million, an increase from $112 million in the prior year [42] - The company ended the year with $591.5 million in cash and equivalents, excluding the St. Augustine purchase [43] Q&A Session Summary Question: What are the expectations for 2025 in terms of revenue and enrollments? - The company expects total revenue and enrollments to increase in 2025, driven by strong prospective student interest and sustained improvements in retention and engagement [32] Question: How will the acquisition of St. Augustine impact financial performance? - The acquisition is expected to be accretive to operating income in 2025 and contribute positively to cash flow from operations [17][45] Question: What is the outlook for adjusted earnings per diluted share in 2025? - Adjusted earnings per diluted share is expected to range between $2.31 and $2.51, reflecting the impact of incremental expenses related to the acquisition [50]

Enrollment Growth - Total student enrollments increased by 20.0% as of December 31, 2024, compared to the previous year, with CTU and AIUS contributing to this growth [344]. - CTU's total student enrollments increased by 8.1% compared to the prior year, driven by growth in corporate engagement programs [344]. - AIUS experienced an 11.8% increase in total student enrollments, returning to normalized levels of operations [344]. - Total student enrollments increased by 20.0% to 41,400 as of December 31, 2024, compared to 34,500 in 2023 [369]. Revenue and Income - Revenue for the current year decreased by 4.0% or $28.7 million, primarily due to a 2.6% decrease at CTU and an 11.1% decrease at AIUS, offset by $10.0 million from the USAHS acquisition [347]. - Total revenue for the year ended December 31, 2024, decreased by 4.0% or $28.7 million, primarily due to declines in revenue from CTU and AIUS [355]. - CTU revenue for 2024 was $456.9 million, a decrease of 2.6% compared to 2023, while AIUS revenue decreased by 11.1% to $213.5 million [367]. - Operating income increased to $174.3 million in the current year, up from $150.4 million in the prior year, due to decreased operating expenses [348]. - Adjusted operating income for the current year was $192.2 million, compared to $174.9 million in the prior year [349]. - Adjusted earnings per diluted share increased to $2.29 for the current year, up from $2.10 in the prior year [351]. - Operating income increased by 15.8% or $23.8 million compared to the prior year, supported by lower operating expenses across most categories [363]. - Operating income margin improved to 25.6% in 2024 from 21.2% in 2023 [367]. Expenses and Cost Management - Educational services and facilities expense decreased by 7.3% or $9.5 million, driven by improvements in academics and student-related costs [357]. - General and administrative expenses decreased by 7.8% or $31.0 million, primarily due to lower administrative, admissions, and advertising expenses [359]. - Bad debt expense increased slightly by 1.5% or $0.5 million for the current year compared to the prior year [362]. - AIUS's operating income decreased by 20.1% or $9.1 million in 2024, despite reduced operating expenses [374]. - Corporate and Other operating loss improved by 21.4% or $8.3 million in 2024, mainly due to lower legal expenses [375]. Acquisitions and Strategic Initiatives - The acquisition of USAHS on December 2, 2024, allows for diversification and expansion into health sciences, broadening the company's academic offerings [343]. - The acquisition completed on December 2, 2024, contributed to the current year's revenue, which was not included in the full comparative period of the prior year [355]. - USAHS generated approximately $10.0 million in revenue starting from its acquisition date on December 2, 2024 [374]. - The company completed the acquisition of USAHS on December 2, 2024, expanding its educational offerings [370]. Cash Flow and Financial Position - As of December 31, 2024, cash balances totaled $591.5 million, with restricted cash at $22.6 million [401]. - Net cash flows from operating activities increased to $161.6 million in 2024 from $112.0 million in 2023, driven by improved operating performance [406]. - Approximately 77% of cash receipts from tuition payments in 2024 came from Title IV Program funding, slightly up from 76% in 2023 [407]. - Total cash, cash equivalents, restricted cash, and short-term investments decreased by 2% from $604.2 million in 2023 to $591.5 million in 2024 [419]. Shareholder Returns and Future Outlook - The company approved a new stock repurchase program for up to $50.0 million, effective from March 1, 2024, to September 30, 2025 [403]. - Dividend payments increased significantly to $31.7 million in 2024 from $14.4 million in 2023 [414]. - Capital expenditures decreased to $4.6 million in 2024, representing 0.7% of revenue, with expectations to rise to approximately 2.0% of revenue in 2025 [411]. - The company expects revenue growth in 2025, primarily due to the USAHS acquisition and improvements in student retention and engagement [346]. - The company expects an effective tax rate between 25.5% and 26.5% for the full year 2025 [365]. - The effective tax rate for the year ended December 31, 2024, was 26.7%, compared to 23.1% in the prior year [364].

I've been managing my own as well as family members' portfolios for several years now. I love the investing process, getting to learn about a variety of new and interesting companies, learning about investing psychology, and all the myriad things that contribute to successful (and from time to time, not so successful) investing outcomes. A big component of my investing philosophy is to try to have my errors be largely skewed towards errors of omission rather than errors of commission, as the former are much ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...

Perdoceo Education Corporation (PRDO) has completed its acquisition of the University of St. Augustine for Health Sciences, LLC (“USAHS”). This transaction was valued at approximately $138 million in cash, net of cash acquired.Shares of this postsecondary education provider rose 1.8% during yesterday’s trading hours.PRDO to Drive Growth With USAHS’ AcquisitionThis acquisition is expected to enhance PRDO's financial performance and contribute to its long-term growth trajectory. Founded in 1979, USAHS is a le ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...