Core Insights - Enrollment is now open for the 2026–2027 school year at Ohio Digital Learning School (ODLS) and Ohio Virtual Academy (OHVA), both tuition-free virtual public schools serving students across Ohio [1][2] Group 1: School Overview - Ohio Digital Learning School (ODLS) serves grades 9–12 and focuses on credit recovery and non-traditional learning environments, providing personalized academic support and pathways to graduation [3] - Ohio Virtual Academy (OHVA) serves grades K–12, offering a comprehensive online curriculum and enrichment opportunities to support academic growth and prepare students for college and career pathways [4] Group 2: Enrollment and Program Features - Families can apply for enrollment through the respective school websites, and the programs are open to students statewide [2] - Both schools are tuition-free and provide instruction by Ohio-certified teachers, ensuring that students follow a structured academic schedule with live instruction and regular teacher support [2][3] Group 3: Educational Support and Activities - ODLS and OHVA offer career and college readiness opportunities, including career and technical education (CTE) pathways and dual-credit options, as well as advanced coursework and credit recovery programs [2][4] - Students can engage in virtual clubs, group projects, competitions, field trips, and in-person events to enhance socialization and community involvement [2]

Polen Capital, an investment management company, released its fourth-quarter investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter can be downloaded here. The Polen 5Perspectives Small Growth Composite Portfolio returned -1.3% gross and -1.5% net of fees in the fourth quarter of 2025, compared to a 1.2% return of the Russell 2000 Growth Index. Following double-digit returns in 2Q and 3Q, small caps concluded the year with a 1.2% return in 4Q. Biotech stood out as a major per ...

Core Insights - K12 Tutoring has been awarded the Tech & Learning Awards of Excellence for its measurable academic impact through research-backed tutoring solutions [1] - The tutoring program is designed for K–12 learners and provides live, small-group virtual instruction led by state-certified teachers, partnering with school districts and families [2] - K12 Tutoring has achieved ESSA Level II and Level III validation, demonstrating significant academic gains in reading and math, particularly for students with the greatest learning needs [3] Company Overview - K12 Tutoring has delivered over 300,000 tutoring sessions to thousands of students nationwide, focusing on consistent academic support across diverse learning environments [4] - The company emphasizes the need for long-term tutoring models that provide quality and measurable outcomes, as stated by its General Manager [4] - K12 Tutoring is part of Stride, Inc., a leader in online education, offering high-quality, flexible online tutoring services tailored to support students' academic journeys [5]

Core Viewpoint - A class action lawsuit has been filed against BellRing Brands, Inc. (NYSE: BRBR) for investors who acquired securities during the specified class period, highlighting significant stock price drops due to negative financial disclosures [1] Company Overview - BellRing Brands, Inc. is headquartered in St. Louis, MO, and specializes in marketing nutrition products, including ready-to-drink protein shakes, nutrition drinks, powders, and protein bars under the Premier Protein and Dymatize brands [1] Financial Performance - On May 6, 2025, BellRing's CFO indicated that several key retailers reduced their weeks of supply, which is expected to negatively impact third-quarter growth by a mid-single-digit percentage [1] - Following this announcement, BellRing's stock price fell by $14.88 per share, or 19%, from $78.43 on May 5, 2025, to $63.55 on May 6, 2025 [1] - On August 4, 2025, BellRing narrowed its fiscal year 2025 outlook for net sales, attributing the adjustment to competitors gaining market share with a large retailer, leading to a stock price drop of $17.46 per share, or 33%, from $53.64 on August 4, 2025, to $36.18 on August 5, 2025 [1]

Industry Overview - The Zacks Schools industry is facing significant challenges, including a declining traditional student base, increased competition from public and nonprofit institutions, and rising compliance costs due to tighter regulatory oversight [1][4][5] - The industry comprises for-profit education companies offering various undergraduate, graduate, and specialized programs, focusing on career-oriented education in fields such as healthcare, technology, and skilled trades [3] Current Challenges - Margin pressures are intensifying due to rising costs in faculty, support services, marketing, and technology, coupled with aggressive enrollment competition [4] - Operational challenges include high compliance costs and vulnerability to enrollment fluctuations, which can significantly impact operating income [5][6] Demand Trends - There is a renewed demand for workforce-oriented programs, particularly in healthcare, cybersecurity, and skilled trades, driven by employers prioritizing job-ready skills [7][9] - The U.S. healthcare sector is experiencing a shortage of skilled professionals, creating opportunities for education providers to align their programs with workforce needs [8][9] Industry Consolidation - The sector is witnessing consolidation, with larger players acquiring smaller institutions to expand program offerings and achieve scale advantages [10] - Recent policy changes, such as the "Workforce Pell" initiative, are expected to enhance enrollment and pricing power for accredited programs [11] Technology Integration - The adoption of technology and digital learning platforms is becoming a key differentiator for for-profit colleges, enhancing student engagement and operational efficiency [12] Financial Performance - The Zacks Schools industry currently ranks 153 out of over 250 Zacks industries, indicating it is in the bottom 37% in terms of performance [13][14] - The industry's earnings estimates for 2026 have decreased slightly to $1.86 per share, reflecting a loss of confidence in earnings growth potential [15] Stock Performance - The industry has underperformed the S&P 500 but has fared better than the broader Zacks Consumer Discretionary sector over the past year, with a collective loss of 4.5% [17] Valuation Metrics - The industry is currently trading at a forward P/E ratio of 13.68X, significantly lower than the S&P 500's 23.24X and the sector's 17.66X [20] Notable Companies - **American Public Education, Inc. (APEI)**: Focused on military and healthcare education, APEI has seen strong enrollment growth and is expected to grow earnings by 106.5% in 2026 [27][28] - **Adtalem Global Education Inc. (ATGE)**: Gaining from enrollment momentum in healthcare education, ATGE's earnings are projected to grow 18% in fiscal 2026 [30][31] - **Stride, Inc. (LRN)**: Provides technology-driven online education, with a focus on K-12 education, and is expected to see earnings growth of 3.2% in fiscal 2026 [34][35]

Core Insights - Royal Caribbean Cruises Ltd. (RCL) reported fourth-quarter 2025 results with adjusted earnings and revenues missing the Zacks Consensus Estimate, but both metrics increased year-over-year. The stock rose 6.2% in pre-market trading due to strong guidance for 2026 [1][9]. Financial Performance - In Q4 2025, RCL reported adjusted earnings per share (EPS) of $2.80, missing the consensus estimate of $2.81, compared to $1.63 in the prior-year quarter [4]. - Quarterly revenues were $4,259 million, below the consensus estimate of $4,269 million, but up 13.2% year-over-year from $3.76 billion [4]. - Passenger ticket revenues reached $2.94 billion, up from $2.6 billion in the prior-year quarter, while onboard and other revenues increased to $1.32 billion from $1.16 billion [5]. - Total cruise operating expenses were $2.24 billion, a 9.3% increase year-over-year [5]. Booking and Demand Trends - RCL has seen record booking momentum, with about two-thirds of 2026 sailings already booked at higher prices, reflecting strong demand [9][10]. - The company experienced the seven strongest booking weeks in its history, driven by strong Cyber Sales and a solid start to the WAVE season [10]. - Spending trends are also improving, with onboard and pre-cruise purchases outpacing prior years, indicating higher guest participation and pricing [11]. Future Outlook - For Q1 2026, RCL expects adjusted EPS to be in the range of $3.18-$3.28, with the Zacks Consensus Estimate at $3.00 per share [13]. - The company anticipates net yields to increase by 2.4-2.9% on a reported basis year-over-year [14]. - For 2026, adjusted EPS is projected to be between $15.41 and $15.55, lower than the previous expectation of $17.70-$18.10, with the Zacks Consensus Estimate at $17.72 [15]. Strategic Initiatives - RCL is increasing investments in next-generation vacation offerings, including the launch of new Discovery Class ships and the expansion of Celebrity River Cruises [3]. - The rollout of five new exclusive destinations by 2028 aims to deepen the company's appeal and expand its addressable market [3].

Financial Performance - Stride Inc. reported a net income growth of 3% for Q2 FY2026, reaching $99.5 million compared to $96.4 million in the same quarter last year [1] - Revenues increased by 7.5% to $631.3 million from $587.2 million year-on-year, driven by a 7.8% rise in enrollments, with earnings of $2,437 per enrollment [2] - For the six-month period, net profit rose by 22% to $168.3 million from $137.3 million, while revenues jumped by 10% to $1.25 billion from $1.14 billion year-on-year [2] Future Outlook - Stride Inc. reaffirmed its full fiscal 2026 revenue outlook of $2.48 billion to $2.55 billion, with adjusted operating income expected between $485 million and $505 million [3] - For Q3 FY2026, the company targets revenues of $615 million to $645 million, with adjusted operating income projected at $130 million to $140 million [3] Stock Performance - Stride's stock price increased by 14.25% on a recent Wednesday, closing at $82.75, reflecting positive investor sentiment following the strong earnings report [1]

Core Insights - Stride's stock price increased by over 14% following the announcement of earnings that exceeded Wall Street's expectations [1] Enrollment Growth - Stride's revenue grew by 7.5% year over year, reaching $631.3 million in the second quarter of fiscal 2026, ending December 31 [2] - Total enrollments rose by 7.8% to 248,500, with career learning enrollments surging by 17.6% to 111,500 [2] - Revenue per enrollment increased by 1.8% to $2,437 [2] - CEO James Rhyu noted that families are seeking alternatives to traditional education models [2] Profitability Improvement - Stride's adjusted EBITDA surged by 17.2% to $188.1 million [4] - Adjusted earnings per share increased by 5.5% to $2.50, surpassing consensus estimates of $2.01 [4] Growth Forecast - For the full fiscal year 2026, Stride expects revenue between $2.480 billion and $2.555 billion, with adjusted operating income projected between $485 million and $505 million [5] - This represents year-over-year growth of approximately 5% for revenue and 6% for adjusted operating income [5] Funding Environment - The CFO, Donna Blackman, indicated a generally positive state funding environment [3]

Core Insights - Two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors as of January 28, 2026 [1] Group 1: Momentum Indicators - The Relative Strength Index (RSI) is a key momentum indicator that compares a stock's performance on days with price increases to days with price decreases [2] - An asset is generally considered overbought when the RSI exceeds 70, indicating potential caution for traders [2] Group 2: Overbought Stocks - Gold.com Inc (NYSE:GOLD) and Stride Inc (NYSE:LRN) are identified as major overbought stocks within the consumer discretionary sector [3]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Murano Global Investments Plc (MRNO) is up 146% at $3.35 [3] - Kustom Entertainment, Inc. (KUST) is up 34% at $2.84 [3] - Ainos, Inc. (AIMD) is up 34% at $2.32 [3] - Stride, Inc. (LRN) is up 29% at $94.10 [3] - Shuttle Pharmaceuticals Holdings, Inc. (SHPH) is up 18% at $2.40 [3] - Battalion Oil Corporation (BATL) is up 16% at $3.83 [3] - C3.ai, Inc. (AI) is up 15% at $14.58 [3] - Lantronix, Inc. (LTRX) is up 14% at $7.87 [3] - Nextpower Inc. (NXT) is up 13% at $120.00 [3] - High Roller Technologies, Inc. (ROLR) is up 7% at $7.56 [3] Premarket Losers - Flora Growth Corp. (FLGC) is down 34% at $7.20 [4] - TEN Holdings, Inc. (XHLD) is down 29% at $2.47 [4] - Global Interactive Technologies, Inc. (GITS) is down 22% at $3.25 [4] - 5E Advanced Materials, Inc. (FEAM) is down 15% at $2.70 [4] - Vyome Holdings, Inc. (HIND) is down 14% at $2.79 [4] - Altimmune, Inc. (ALT) is down 11% at $5.48 [4] - BiomX Inc. (PHGE) is down 10% at $6.22 [4] - Qorvo, Inc. (QRVO) is down 9% at $74.94 [4] - Nuwellis, Inc. (NUWE) is down 9% at $3.45 [4] - Brenmiller Energy Ltd (BNRG) is down 9% at $2.90 [4]