Grand Canyon Education, Inc. (LOPE) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Grand Canyon Education (LOPE) has experienced significant stock performance, with a 24% increase over the past month and a 52-week high of $164.93, outperforming both the Zacks Consumer Discretionary sector and the Zacks Schools industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of$1.48 against a consensus estimate of $1.46 in its latest earnings report [2]. - For the current fiscal year, Grand Canyon Education is projected to achieve earnings of$8.03 per share on revenues of $1.03 billion, reflecting a 14.06$8.81 per share on $1.11 billion in revenues, indicating year-over-year changes of 9.71% and 7.73%, respectively [3]. Valuation Metrics - The stock trades at a valuation of 20.4X current fiscal year EPS estimates, which is above the peer industry average of 19.1X [7]. - On a trailing cash flow basis, the stock trades at 20.1X compared to the peer group's average of 12.4X, with a PEG ratio of 1.36 [7]. - Grand Canyon Education holds a Value Score of B, a Growth Score of A, and a Momentum Score of B, resulting in a VGM Score of A [6]. Zacks Rank - The company has a Zacks Rank of 2 (Buy), supported by rising earnings estimates, making it a favorable choice for investors [8]. - The recommendation is to select stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which applies to Grand Canyon Education [8]. Industry Comparison - In comparison to industry peers, Adtalem Global Education Inc. (ATGE) also shows strong performance with a Zacks Rank of 2 (Buy) and solid earnings expectations [9]. - The Schools industry is performing well, ranking in the top 12% of all industries, indicating positive market conditions for both LOPE and ATGE [11].