Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The rise of statewide school-day ACT testing programs has significantly increased participation rates, with an average increase of 28 percentage points in the first year of implementation across various states [4][10] - The ACT is now part of the statewide assessment program in twenty-three states, providing a more inclusive picture of college readiness by allowing more students from low-income and underserved populations to participate [2][5][6] - School-day testing has led to a more representative testing population, with 78 percent of the ACT 2024 graduating class participating in at least one school-day ACT administration [4] Summary by Sections Statewide School-Day ACT Programs - Since 2001, the implementation of statewide school-day ACT testing has allowed for a more inclusive assessment of student readiness, with significant increases in participation from diverse demographics [4][5][6] - The average participation rate in states with school-day testing rose by 28 percentage points in the first year, indicating a substantial shift in accessibility [10] Insights from a More Representative ACT Graduating Class - The expansion of school-day testing has revealed that 43 percent of students in the ACT graduating class of 2024 did not meet any College Readiness Benchmarks, highlighting the need for improved academic and workforce readiness [21][22] - Among students who reported no education or training plans after high school, 26 percent still enrolled in college, suggesting that school-day testing can influence students' postsecondary plans [25][26] - Students who completed a core curriculum scored an average of 2.6 points higher on the ACT compared to those who did not, emphasizing the importance of academic preparation [27][28] Conclusion - The implementation of statewide school-day ACT programs has transformed the understanding of postsecondary readiness, providing educators and policymakers with better data to drive interventions and resource allocation [29][30] - These programs represent a critical step toward ensuring that all students, regardless of background, have the opportunity to demonstrate their potential and succeed [31]

Investment Rating - The report does not explicitly provide an investment rating for the industry or company Core Insights - The ACT enhancements aim to improve college and career readiness for students while maintaining the validity and predictive value of the test [10][15] - The enhanced ACT will feature a shorter format, with a total testing time of 125 minutes compared to the legacy ACT's 175 minutes, allowing for more time per question [12][33] - The science section will become optional starting in April 2025, allowing students to choose whether to include it in their Composite score [11][54] - The overall number of questions has been reduced, and the test will now include embedded field-test items that do not count toward scores, enhancing the testing experience [12][36] - The enhancements are based on stakeholder feedback and evidence collected through various studies, ensuring alignment with college readiness standards [17][63] Summary by Sections Introduction - The report outlines the enhancements made to the ACT test, focusing on changes to both the test structure and content to better meet the needs of students and stakeholders [15][16] Chapter 1: Identifying Potential Areas for Revision - The chapter discusses the rationale behind potential enhancements, including testing time, student choice, and accessibility [59][60] Chapter 2: Panels and Revisions - This chapter details the feedback process from expert panels and the revisions made to the initial blueprints based on their input [62] Chapter 3: Validity Evidence - The chapter presents evidence supporting the validity of the enhanced ACT, focusing on alignment with state content standards and cognitive processes of test-takers [63][64] Chapter 4: Psychometric Evidence - This chapter summarizes psychometric studies that validate the enhanced ACT's reliability and comparability with the legacy ACT [66][68]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Students who participated in the PreACT testing scored higher on the ACT and were more likely to be prepared for college courses, with an average ACT composite score of 20.94 for PreACT participants compared to 19.94 for non-participants [5][11] - The average score difference across subjects varied, with the highest difference in English at 1.28 points and the lowest in Mathematics at 0.83 points [8][10] - The average score increase from PreACT to ACT was 1.81 points, with the lowest increase in Reading (0.25 points) and the highest in English (3.70 points) [29] - College enrollment rates were higher for students who took the PreACT, with significant differences observed across the 2021, 2022, and 2023 graduating classes [18][22] - The average growth from PreACT to ACT was positively correlated with the rigor of high school courses taken [33] Summary by Sections PreACT Participation and Performance - Over 374,000 students took the PreACT 8/9 exam, and those who participated scored higher on the ACT [1][3] - The report highlights the importance of PreACT in preparing students for college readiness benchmarks [11][12] Score Differences and Adjustments - The report utilized linear regression to adjust for academic and demographic variables, showing that the differences in ACT scores between PreACT and non-PreACT groups were influenced by other factors [8][10] - After adjustments, the average score differences were significantly reduced, indicating that participation in PreACT is associated with better preparedness for college [10][22] College Enrollment Rates - The report indicates that students who took the PreACT had higher college enrollment rates, particularly among those planning to attend four-year colleges [18][28] - The analysis of enrollment rates across different educational plans showed that students' intentions often change during their final years of high school [28] Score Growth by Demographics - The average score increase from PreACT to ACT varied by race/ethnicity, with Asian students showing the highest average increase of 2.61 points, while Native Hawaiian/Other Pacific Islander students had the lowest at 1.11 points [38][39] - The report also noted that score growth was positively correlated with family income levels, with higher income groups showing greater average increases [47][49]

Investment Rating - The report does not provide a specific investment rating for the industry. Core Insights - The enhanced ACT test is designed to better meet the needs of students, allowing for a more tailored testing experience that highlights their strengths and potential [4][6] - The enhanced ACT test includes changes such as a shorter format and more time per question, which aims to improve student performance on test day [2][5] - Evidence supports the interpretation of scores from the enhanced ACT as measures of high school academic achievement and college readiness, which can inform college admissions and academic support decisions [7][20] Summary by Sections Test Design and Specifications - The enhanced ACT includes multiple-choice tests in English, math, reading, and science, with a total of 142 scored items compared to 215 in the legacy ACT [5][6] - The time allowed for the enhanced ACT is also adjusted, providing more time per question [2][5] Reliability and Validity - Reliability coefficients for the enhanced ACT are expected to be slightly lower than those of the legacy ACT due to the reduced number of items [10][14] - The correlations of enhanced ACT scores with high school grades and prior ACT scores are anticipated to be slightly lower than those of the legacy ACT, but still comparable [20][24] Predictive Validity - Predictive validity evidence for the enhanced ACT is not yet available, but historical data suggests that correlations with college outcomes may be slightly lower than those from the legacy ACT [29][33] - The report emphasizes the need for further analysis based on actual postsecondary outcomes for students who take the enhanced ACT [33][34] Comparability of Scores - The report examines the implications of changes in Composite score calculations, specifically the removal of the science score starting in April 2025, and its impact on interpretations for various user groups [42][43] - Comparisons of scores with and without science indicate that the normative interpretations of Composite scores may change, affecting college applicant pools [42][46]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The study indicates that ACT Composite scores may be a more reliable predictor of first-year college GPA (FYGPA) and college degree completion for students with disabilities who take the ACT with accommodations compared to high school GPA (HSGPA) [2][3] - The combination of ACT scores and HSGPA yields more accurate predictions of college outcomes than either measure alone, highlighting the importance of using multiple assessment tools for evaluating college readiness [2][3] - The findings suggest that students with disabilities may benefit from postsecondary institutions employing multiple measures to assess academic performance and readiness for college [5] Summary by Sections Introduction - Students with disabilities face barriers in education, impacting their college readiness and access to opportunities [12] - Lower graduation rates and college enrollment rates are observed among students with disabilities compared to their peers [14] Study Sample - The study included 143,768 ACT-tested students, with 2,659 (2%) taking the ACT with accommodations [31] - Students who tested with accommodations were more likely to enroll in two-year institutions compared to those without accommodations [34] Results - Students who tested with accommodations had lower ACT Composite scores and HSGPA than those who tested without accommodations [59][62] - The average ACT Composite score for students with accommodations at two-year institutions was 16.2, while for those without accommodations it was 18.9 [61] - The average HSGPA for students with accommodations was lower than for those without, with a notable difference of 0.21 points at four-year institutions [62] Conclusions - The study concludes that using both ACT Composite scores and HSGPA together improves prediction accuracy for college success among students with disabilities [2][3] - Future research is recommended to explore the effects of different types of disabilities and accommodations on college outcomes [2]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The study finds that both high school GPA (HSGPA) and ACT STEM scores are significant predictors of first-year GPA (FYGPA) for STEM majors, with HSGPA generally having a stronger effect [3][70] - The interaction between HSGPA and ACT STEM scores enhances predictive accuracy, indicating a complex relationship [3][70] - Incorporating demographic variables such as gender, race/ethnicity, and family income adds nuance to the predictive model, affecting FYGPA and moderating the relationships between predictors [3][70] Summary by Sections Introduction - The report discusses the importance of college admissions test scores and high school GPA in predicting college success, particularly in STEM fields [11] - It highlights the debate over the predictive power of HSGPA versus standardized test scores like the ACT [11][12] Methodology - The analytical sample consisted of 2,691 students who graduated in 2022, enrolled in a public postsecondary institution, and declared a STEM major [20] - The study utilized hierarchical linear models to evaluate the predictive validity of ACT STEM scores and HSGPA on FYGPA [25][36] Results - Descriptive statistics show that the average HSGPA was 3.55, ACT STEM score was 21.01, and FYGPA was 3.00 [32] - The correlation between HSGPA and FYGPA was moderately strong (0.51), while the correlation between ACT STEM scores and FYGPA was moderate (0.36) [34] - Model 6, which included both academic achievement indicators and demographic variables, provided the best fit, explaining 34% of the variance in FYGPA [43][46] Discussion - The findings emphasize the importance of sustained high performance in high school and equitable access to resources for diverse student backgrounds [4][70] - The study suggests that both HSGPA and ACT STEM scores provide complementary information for predicting academic readiness in STEM majors [72][74] - Recommendations for parents and post-secondary institutions include supporting students' academic journeys and refining admissions processes to incorporate both HSGPA and ACT STEM scores [5][75]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The ACT Composite score and High School GPA (HSGPA) are significant predictors of college success, particularly first-year GPA (FYGPA) and degree completion [1][9][11] - The study emphasizes the importance of using both ACTC score and HSGPA together to enhance predictive accuracy for college outcomes [5][6][11] - FYGPA serves as a mediator in the relationship between ACTC score, HSGPA, and degree completion, indicating that early college performance is crucial for long-term success [10][39][63] Summary by Sections Introduction - Pre-college academic indicators like ACT scores and HSGPA are effective predictors of success in higher education [1] - Research shows that including ACT scores improves predictive models for college outcomes [1][9] Predictive Validity - HSGPA is influenced by noncognitive factors and is a multidimensional measure of achievement [3][4] - Studies indicate that both ACTC score and HSGPA predict cumulative GPA and degree completion within specified time frames [9] Methodology - The study analyzed data from 19,613 students across 32 institutions, focusing on their ACTC scores, HSGPA, and degree completion status [14][21] - Path analysis was used to explore the relationships between ACTC score, HSGPA, FYGPA, and degree completion [12][39] Results - 31.4% of students completed their degrees within 4 years, and 38.3% by 6 years [27] - The average HSGPA was 3.34, and the average ACTC score was 21.56, indicating a correlation between higher scores and degree completion [27][29] Mediation Analysis - FYGPA significantly mediates the relationship between HSGPA and ACTC score on degree completion by Years 4 and 6 [39][63] - The direct effect of ACTC score on degree completion is stronger than that of HSGPA, while the indirect effect via FYGPA is larger for HSGPA [63] Hierarchical Logistic Regression - The odds ratios indicate that for each standard deviation increase in FYGPA, the odds of completing a degree by Year 4 increase 6.31 times [49] - Family income and gender also play roles in predicting degree completion, with higher income correlating with greater likelihood of graduation [50][53] Discussion - The findings underscore the importance of accurately predicting academic success to improve student outcomes and inform admissions processes [60][62] - The report highlights the need for institutions to utilize both ACTC scores and HSGPA in their predictive models for better resource allocation [62]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The COVID-19 pandemic has had a significant negative impact on student performance across various assessments, with notable declines in ACT scores observed during the pandemic years [23][31] - There is no consistent evidence that the pandemic exacerbated existing achievement gaps among different demographic groups; in some cases, historically disadvantaged groups showed less decline [23][31] - The pandemic has led to increased uncertainty among students regarding their career choices, with a notable rise in the percentage of students feeling undecided about their future paths [24][26] Summary by Sections ACT Aspire - Research indicates that students' scores on the ACT Aspire assessments declined across all subjects during the 2020-2021 academic year compared to the previous year, with the most significant drop in mathematics [6][9] - The decline in scores was more pronounced among younger students, while students with disabilities experienced smaller declines [6][9] PreACT - The PreACT scores for the 2020-2021 academic year showed declines in English, mathematics, and reading, with the most significant drop in English for Hispanic students [11][12] - Public school students experienced slightly smaller declines in mathematics and reading compared to private school students [11] ACT Test Score Changes - Studies show that ACT scores dropped significantly in the fall of 2020 compared to the previous year, with an overall decline of 0.63 points in composite scores [17][18] - Asian students experienced the smallest declines in scores across all subjects, while Indigenous students showed the most consistent patterns of decline [23][22] Career Preference Trends - A study covering over 1.6 million students from 2012 to 2023 found that the percentage of students feeling uncertain about their career paths increased from 15.1% to 24.4% [24][25] - Interest in finance and computer science careers has risen, while interest in fields like arts and education has decreased [26][27] Predictive Validity of ACT Scores - The predictive validity of high school GPA (HSGPA) for college performance has changed post-pandemic, while ACT scores remained stable as a predictor [28][29] - The combination of ACT scores and HSGPA provides the best predictive model for first-year college GPA [30]

Investment Rating - The report does not provide a specific investment rating for the industry Core Insights - There is a positive relationship between parent education level and student educational aspirations [4][11] - 40% of students aspire to attain education levels that exceed their parents' education levels [4][11] - Students with higher ACT scores are more likely to have higher educational aspirations [8][11] Summary by Sections Educational Aspirations - Among the 580,114 students analyzed, 41% expected to earn more than a 4-year college degree, 47% expected to earn a 4-year college degree, 8% expected to earn less than a 4-year degree, and 4% expected to earn a high school diploma [2] - The education level of parents was categorized, with 33% having a parent with more than a 4-year college degree and 16% having a parent with a high school diploma or less [2] Relationship with Academic Achievement - Students with higher ACT Composite scores are more likely to aspire to earn more than a 4-year college degree [8] - The average ACT Composite score for the sample was 21.6, compared to 19.4 for the entire 2024 ACT-tested graduating class [10] Summary of Findings - The report concludes that educational aspirations are influenced by both parental education levels and students' academic achievements [11]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The study reveals that neither high school GPA (HSGPA) nor ACT Composite score consistently dominates across all models, challenging prior conclusions about their relative importance [3][4][92] - Academic achievement measures are significantly stronger predictors of first-year GPA (FYGPA) than demographic variables, with family income and gender being the least important [3][4][92] - English and math performance in high school are highlighted as dominant predictive roles for college success [3][4][92] Summary by Sections Introduction - Accurately predicting FYGPA is crucial for admissions decisions and student support services, with HSGPA and standardized test scores being commonly used predictors [11][88] Methodology - The analytical sample consisted of 7,924 students from a southern state in the U.S. who took the ACT and enrolled in public four-year colleges [23] - Multiple imputation and dominance analysis were employed to evaluate the relative importance of predictors [21][32] Results - General dominance results indicate that ACT Composite score and HSGPA tie for the highest R2 contribution, followed by race/ethnicity, family income, and gender [44][45] - English GPA emerged as the most dominant predictor of FYGPA, followed by ACT English score and ACT math score [63][65] - The weakest predictors of FYGPA were family income and gender, which were frequently dominated by other achievement variables [96][97] Discussion - The findings emphasize the importance of academic readiness measures, such as HSGPA and ACT scores, over demographic factors in predicting college success [97][98] - The study suggests that colleges should focus on academic achievement metrics in admissions decisions and support services [97][98]