Why Strategic Education (STRA) is a Top Value Stock for the Long-Term

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]