All You Need to Know About Strategic Education (STRA) Rating Upgrade to Buy

Core Viewpoint - Strategic Education (STRA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][4]. - The upgrade reflects an improvement in Strategic Education's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5]. Earnings Estimate Revisions - Strategic Education is projected to earn $4.79 per share for the fiscal year ending December 2024, representing a year-over-year increase of 28.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Strategic Education has increased by 1.3%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Strategic Education in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].