5 Top Stocks to Buy From the Promising School Industry

Industry Overview - The U.S. education industry is experiencing multifaceted growth driven by the popularity of e-books, online learning, increasing demand for healthcare professionals, new technologies, and strategic acquisitions for global reach [1] - Companies in the Zacks Schools industry face challenges such as rising advertising and marketing expenses, costs related to online education, and threats from advancements in generative AI systems [1][7] Key Trends - There is a rising demand for online education and healthcare professionals, with for-profit education companies benefiting from the shift to virtual learning [4][5] - The healthcare sector is facing a significant shortage of skilled professionals, which is expected to worsen, creating opportunities for education companies to tailor programs to meet workforce needs [5] - Companies are implementing cost-saving measures, increasing technology use, and introducing new programs to enhance profitability and student outcomes [6] Financial Performance - The Zacks Schools industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500, with a collective stock increase of 36.9% over the past year compared to 4.4% and 24.1% respectively [12] - The industry currently holds a Zacks Industry Rank of 13, placing it in the top 5% of over 250 Zacks industries, indicating strong near-term prospects [10] Company Highlights - Strategic Education, Inc. (SEI): Focuses on traditional and online education, benefiting from strong demand and improved enrollment trends. The company is innovating with competency-based learning models [16] - Adtalem Global Education Inc. (ATGE): A leading healthcare educator positioned to benefit from the growing demand for healthcare professionals, with a focus on enrollment growth and strategic partnerships [19] - Stride, Inc. (LRN): A technology-based education company experiencing growth from higher enrollment and online learning demand, with a focus on improving user experience [21] - Universal Technical Institute (UTI): Offers skilled trades and healthcare education, focusing on enrollment and profit growth through new program launches [24] - Perdoceo Education Corporation (PRDO): Provides postsecondary education through various formats, benefiting from improved enrollment trends and technology investments [26]