Core Viewpoint - The article emphasizes the importance of value investing and highlights Strategic Education (STRA) as a strong value stock based on its Zacks Rank and valuation metrics [2][5]. Group 1: Zacks Rank and Value Scores - STRA has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is among the best value stocks currently available [2]. - The Style Scores system can help investors identify stocks with specific traits, particularly in the Value category [2]. Group 2: Valuation Metrics - STRA has a Price-to-Book (P/B) ratio of 1.33, which is significantly lower than the industry average of 3.16, suggesting it may be undervalued [3]. - The P/B ratio for STRA has fluctuated between 1.23 and 1.84 over the past 52 weeks, with a median of 1.42 [3]. - STRA's Price-to-Cash Flow (P/CF) ratio is 13.04, which is attractive compared to the industry average of 43.32, indicating potential undervaluation based on cash flow [4]. - The P/CF ratio for STRA has ranged from 12.04 to 20.81 in the past year, with a median of 15.75 [4]. Group 3: Earnings Outlook - The combination of STRA's strong valuation metrics and positive earnings outlook suggests that it is likely undervalued at present [5].

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 ...

Group 1: Earnings Performance - Strategic Education (STRA) reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and up from $0.82 per share a year ago, representing an earnings surprise of 10.83% [1] - The company posted revenues of $312.27 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.61%, and an increase from $287.68 million year-over-year [2] - Over the last four quarters, Strategic Education has consistently surpassed consensus EPS estimates [2] Group 2: Stock Performance and Outlook - Strategic Education shares have increased approximately 30.8% since the beginning of the year, outperforming the S&P 500's gain of 14% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $298.61 million, and for the current fiscal year, it is $4.96 on revenues of $1.2 billion [7] Group 3: Industry Context - The Schools industry, to which Strategic Education belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]