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3 Stocks at the Forefront of the Remote Learning Revolution
EDUNEW ORIENTAL(EDU) InvestorPlace·2024-01-17 17:17

Industry Overview - The Covid-19 crisis accelerated the digitalization of in-person functionalities, significantly impacting remote learning stocks [1] - The online education market is projected to generate revenue of 87.51billionbytheendofthisyear,withacompoundannualgrowthrate(CAGR)of11.0587.51 billion by the end of this year, with a compound annual growth rate (CAGR) of 11.05% through 2028, potentially reaching 133.1 billion [1] Company Analysis: New Oriental Education (EDU) - New Oriental Education is the largest comprehensive private educational company in China, with a market revenue of approximately 130billion[2]−Thecompanyiswell−positionedtobenefitfromtheprojectedgrowthintheK−12educationsectorfollowingadownturnduringthepandemic[2]CompanyAnalysis:Stride(LRN)−Strideisafor−profiteducationcompanyprovidingonlineandblendededucationprograms,withasignificantreturnofalmost85130 billion [2] - The company is well-positioned to benefit from the projected growth in the K-12 education sector following a downturn during the pandemic [2] Company Analysis: Stride (LRN) - Stride is a for-profit education company providing online and blended education programs, with a significant return of almost 85% in equity value over the past 52 weeks and 131% over the past five years [5] - The company has a price/earnings-to-growth (PEG) ratio of 0.65X, lower than 63.22% of its peers, and is rated a strong buy with a price target of 66.75 [6] Company Analysis: Grand Canyon Education (LOPE) - Grand Canyon Education offers online and on-campus programs and is recognized as Arizona's premier Christian university [7] - The company is fairly valued with a trailing-year earnings multiple of 19.7X, and it enjoys a strong buy rating with a price target of $145.67 [8]