5 School Stocks to Add to Your Portfolios Before Moving Into 2025

Industry Overview - The U.S. education market is expected to experience significant growth by 2025, driven by changes in industry demand, government initiatives, and technological advancements [1] - The U.S. higher education market, valued at $6 billion in 2024, is projected to grow to$16.8 billion by 2033, with a CAGR of 12.2% from 2025 onward [2] - Government initiatives, including student loans and funding for community colleges, are improving accessibility and affordability in high-demand fields like data science and cybersecurity [3] Growth Drivers - The rise of e-learning platforms is enabling institutions to offer a broader range of programs without the limitations of physical infrastructure, catering to students seeking flexible, career-aligned educational pathways [2] - The use of AI in education is increasing, enhancing personalized learning and preparing students for STEM careers [5] - The influx of international students is expected to contribute to the competitiveness and expansion of the U.S. education market [6] - There is a growing demand for healthcare education due to a shortage of skilled professionals, prompting education providers to expand programs in nursing and medical technology [7] - Alternative credentials, such as certificates and apprenticeships, are becoming popular as students prioritize flexible and cost-effective learning options [8] Company Insights - Several for-profit education stocks are identified as poised to benefit from the growing demand for specialized education, including Stride, Inc. (LRN), Universal Technical Institute, Inc. (UTI), Strategic Education, Inc. (STRA), Lincoln Educational Services Corporation (LINC), and Adtalem Global Education Inc. (ATGE) [9] - Stride, Inc. has seen a 76.9% increase in stock price over the past year, with an expected earnings growth of 41.6% for fiscal 2025 [10] - Universal Technical Institute has experienced a 119.9% stock price increase, with a projected earnings growth of 29.3% for fiscal 2025 [11] - Strategic Education has a stock price increase of 3.9% and an expected earnings growth of 17.7% for 2025 [12] - Lincoln Educational Services has risen 55.8% in stock price, with an expected earnings growth of 27.8% for 2025 [13] - Adtalem Global Education has rallied 45% in stock price, with an expected earnings growth of 17.6% for fiscal 2025 [14]