Adtalem Gains 21% in 3 Months: Here's Why You Must Buy the Stock Now

Core Insights - The Zacks Consensus Estimate for Adtalem Global Education Inc. (ATGE) fiscal 2025 earnings per share has increased from $5.72 to$5.89, indicating a year-over-year growth of 17.6% [1] - The healthcare sector in the U.S. is experiencing a growing demand, coupled with a significant talent shortage, which Adtalem aims to address through its agile operating model and collaboration with Hippocratic AI [2] - Adtalem's Growth With Purpose strategy focuses on organic revenue growth, targeting a compound annual growth rate of 4% to 6% and adjusted EBITDA margin expansion of over 200 basis points by fiscal 2026 [7] Financial Performance - Adtalem's revenue guidance for fiscal 2025 has been revised to a range of $1,690 million to$1,730 million, up from the previous estimate of $1,660 million to$1,700 million [18] - The company reported a trailing 12-month return on equity (ROE) of 15.6%, outperforming the industry average of 9.4%, indicating efficient use of shareholder funds [13] Enrollment and Growth Trends - In the first quarter of fiscal 2025, Adtalem saw a year-over-year enrollment increase of 12.2% at Walden University and 11.7% at Chamberlain University, driven by strong demand in healthcare programs [12] - The overall growth in the healthcare sector is expected to continue supporting Adtalem's growth trajectory through fiscal 2025 into fiscal 2026 [12] Capital Allocation - Adtalem employs a balanced capital allocation strategy, utilizing free cash flow for business investments while also rewarding shareholders through share repurchases and dividends [3] - In the first quarter of fiscal 2025, the company repurchased 462,063 shares at an average price of $73.39 per share [3]