Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future growth potential through earnings and sales metrics [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to facilitate portfolio building, with a historical average annual return of +25.41% for 1 (Strong Buy) stocks since 1988 [7][8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing return potential [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to negative earnings outlooks [10] Company Spotlight: Strategic Education, Inc. - Strategic Education, Inc. (STRA) is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 16.32, making it attractive to value investors [12] - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate increasing by $0.03 to $4.79 per share, alongside an average earnings surprise of 40.4% [12]

Core Viewpoint - Strategic Education (STRA) shares have increased by 3.6% recently, with a mean price target of $126.67 suggesting a potential upside of 26.6% from the current price of $100.09 [1] Price Targets - The average price target consists of three estimates ranging from $120 to $135, with a standard deviation of $7.64, indicating a relatively tight clustering of analyst opinions [2] - The lowest estimate suggests a 19.9% increase, while the highest indicates a 34.9% upside [2] Analyst Sentiment - Analysts show strong agreement on STRA's ability to exceed previous earnings estimates, which supports the potential for stock price appreciation [4][9] - The Zacks Consensus Estimate for the current year has risen by 0.6% over the past month, with no negative revisions [10] Zacks Rank - STRA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside [11] Caution on Price Targets - While price targets are a common metric, they can often mislead investors, and reliance solely on them for investment decisions may not be prudent [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [3][4] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [5][6][7][8] - Value Score emphasizes finding undervalued stocks using financial ratios [5] - Growth Score assesses a company's financial health and future growth potential [6] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [7] - VGM Score combines all three styles to highlight stocks with the best overall potential [8] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [9] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [10] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [12][14] Company Spotlight: Strategic Education, Inc. (STRA) - Strategic Education, Inc. operates through subsidiaries like Strayer University and NYCDA, offering various post-secondary education programs [15] - STRA holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [16] - The company has a forward P/E ratio of 20.74, making it attractive to value investors, and has seen upward revisions in earnings estimates [16] - STRA's average earnings surprise stands at 40.4%, further enhancing its investment appeal [16][17]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style S ...

Strategic Education (STRA) closed the last trading session at $98.92, gaining 13.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $126.67 indicates a 28.1% upside potential.The average comprises three short-term price targets ranging from a low of $120 to a high of $135, with a standard deviation of $7.64. While the lowest estimate indicates an increase of 21.3% from the current ...

Investors looking for stocks in the Schools sector might want to consider either Strategic Education (STRA) or Lincoln Educational Services Corporation (LINC) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with st ...

Strategic Education (STRA) closed the last trading session at $99.91, gaining 14.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $126.67 indicates a 26.8% upside potential.The average comprises three short-term price targets ranging from a low of $120 to a high of $135, with a standard deviation of $7.64. While the lowest estimate indicates an increase of 20.1% from the current ...

Financial Data and Key Metrics Changes - For Q3 2024, revenue grew by 6% to $304 million and operating income increased by 13% to $37 million, resulting in an operating margin of 12.1% [6] - Adjusted earnings per share rose by 19% to $1.15 compared to the prior year [7] Business Segment Data and Key Metrics Changes - U.S. Higher Education segment saw total enrollment grow by 5%, with employer-affiliated enrollment increasing by 13%, contributing to a 3% revenue growth and a 10% increase in operating income [8][10] - Australia and New Zealand segment reported a 5% increase in enrollment, with revenue growing by 11% on a constant currency basis, driven by higher enrollment and revenue per student [11] - Education Technology Services segment experienced a significant revenue growth of 26% and operating income growth of 30%, with Sophia Learning's revenue increasing by 35% [13] Market Data and Key Metrics Changes - The percentage of U.S. higher education enrollment from corporate partnerships increased by 200 basis points to 30%, with student retention remaining stable at 87% [9] - In Australia, the company is monitoring proposed international student caps, which could impact future enrollment [12] Company Strategy and Development Direction - The company is focused on enhancing corporate partnerships and expanding its domestic growth opportunities in Australia and New Zealand [12] - Capital allocation strategy includes paying down debt and repurchasing shares, with $235 million remaining in share repurchase authorization [15][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains healthy, with year-over-year increases in inquiries into universities [28] - The company anticipates that the operating margin expansion for 2024 will likely be at the higher end of the previously stated range of 150 to 175 basis points [31] Other Important Information - The company paid down $60 million of outstanding debt and repurchased approximately 54,000 shares during the quarter [15] - The average number of paid Sophia subscribers grew by 33% to 45,000 [13] Q&A Session Summary Question: Enrollment growth has slowed; any specific reasons? - Management indicated that the slowdown is not due to any specific issues but rather a normalization after high growth rates in previous quarters [18] Question: Can you explain the proposed international student caps in Australia? - The proposed caps aim to limit international student immigration to approximately 270,000 students, which is about half of pre-COVID levels [20][21] Question: Insights on the new large client for Workforce Edge? - The new client had previously used another education benefit management partner and decided to switch to Workforce Edge [22] Question: Clarification on expense timing and operating margin expectations? - Management expects operating margin expansion to be at the higher end of the previously mentioned range due to lower-than-expected expenses [31] Question: What are the drivers of the decline in revenue per student in U.S. higher education? - The decline is primarily due to a shift towards employer-affiliated enrollments, which may impact revenue per student slightly [39]

Strategic Education, Inc., or SEI (STRA) , reported impressive results for third-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Shares of this education services holding company gained 2.2% on Thursday.The company witnessed strong employer affiliated enrollment in the U.S. Higher Education (USHE) segment, strong growth from Sophia subscriptions in the Education Technol ...