Group 1 - Guess (GES) is a member of the Consumer Discretionary group, which includes 254 companies and is currently ranked 9 in the Zacks Sector Rank [2] - Guess has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Guess's full-year earnings has increased by 8.1% over the past 90 days, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Guess has returned 18.8%, outperforming the average gain of 10.9% for the Consumer Discretionary group [4] - In the Textile - Apparel industry, which includes 21 stocks, Guess is performing better as this industry has seen an average loss of 29.6% this year [5] - Laureate Education (LAUR), another stock in the Consumer Discretionary sector, has returned 62.5% year-to-date, indicating strong performance within the sector [4][6]

A lawsuit and eviction threat brought by a US church has rattled one of Hong Kong's elite international schools. In this week's Hong Kong Edition, we break down what’s happened, why and what’s next. https://t.co/aFP3OfHEne ...

The operator of a top Hong Kong school that offers an American-style education is being sued by its US-based founder https://t.co/xSl0MpgAiY ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Laureate Education (LAUR) - Laureate Education currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, LAUR shares increased by 1.35%, while the Zacks Schools industry remained flat [5] - In the last month, LAUR's price change was 3.69%, compared to the industry's 5.55% [5] - Over the past quarter, LAUR shares rose by 22.72%, and over the last year, they gained 88.06%, significantly outperforming the S&P 500's increases of 8.78% and 20.41% respectively [6] Trading Volume - LAUR's average 20-day trading volume is 781,317 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for LAUR have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $1.67 to $1.73 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions noted [9] Conclusion - Considering the positive momentum indicators and earnings outlook, LAUR is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Insights - Stride, Inc. (LRN) has rebranded its tutoring services from Stride Tutoring to K12 Tutoring, focusing on personalized online tutoring for school students since 2022 [1] - The company is integrating AI into its tutoring model to enhance offerings and increase demand, with plans for further investments in the platform [2] - Stride's collaboration with Lake Forest School District in Delaware exemplifies its strategic efforts to expand its tutoring services [3] Tutoring Services Expansion - Stride is currently focusing on tutoring for second and third-grade students, particularly emphasizing reading skills, which indicates an expansion of its K-12 Tutoring services [4] - The favorable market trends position LRN for long-term growth and diversification of revenue streams through various educational programs [4] Stock Performance - LRN shares have increased by 55.6% year-to-date, outperforming the Zacks Schools industry, the broader Zacks Consumer Discretionary sector, and the S&P 500 index [5] - Other education firms like Adtalem Global Education and American Public Education have also seen significant share price increases of 45.7% and 43.1%, respectively [6] Valuation and Earnings Estimates - Stride's stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 18.57, indicating a premium compared to industry peers [10] - Adtalem and American Public are trading at forward P/E ratios of 16.82 and 16.75, respectively [11] - LRN's earnings estimates for fiscal 2026 have been revised upward to $8.58 per share, reflecting a year-over-year growth of 5.9% [12]

Chicago’s junk-rated public school district intends to sell an undisclosed amount of bonds next week for capital projects, laying out its first plans for new debt days after the board passed a controversial budget https://t.co/fRA468aB26 ...

Company Performance - Stride, Inc. (LRN) has shown a solid performance with shares increasing by 14.5% over the past three months, outperforming the Zacks Schools industry, which declined by 0.9%, and the broader Zacks Consumer Discretionary sector, which rose by 6.3% [1][5][10] - The company reported its fourth-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate by 25.1% and 3.9%, respectively. Revenues grew by 22.4% year over year to $653.6 million, while adjusted earnings per share increased by 43.1% to $2.29 [3][10] Enrollment Growth - Stride experienced significant enrollment growth, with overall enrollments averaging 235.3K, up 21.7% year over year. The Career Learning segment saw a notable 33.2% increase in enrollments, reaching 97.0K compared to 72.8K in the same period last year [9][10] - The company anticipates continued enrollment growth of 10% to 15% in the first quarter of fiscal year 2026, supported by strong early funnel activity [12][10] Funding Environment - The funding environment for Stride remains favorable, with expectations of increased funding from some states and stable federal support. The company does not foresee any material impact on revenue per enrollment from federal changes [16][15] - In fiscal 2025, Stride saw an increase in overall revenue per enrollment by 2.4% year over year, with Career Learning revenue per enrollment specifically rising by 8.1% [15][16] Technology and Innovation - Stride is focusing on technology and innovation as key growth drivers, investing in digital learning platforms and expanding high-dosage tutoring for early-grade students [13][14] - The company is also advancing artificial intelligence within its platforms, aiming for responsible applications that enhance efficiency and provide measurable benefits to students and teachers [14][13] Earnings Estimates and Valuation - Over the past 30 days, the Zacks Consensus Estimate for Stride's fiscal 2026 EPS has been revised upward from $7.76 to $8.58, indicating a growth of 5.9% from the prior year [18] - Stride is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 18.74X, which is higher than some industry peers, indicating strong potential in the market [21][23] Overall Outlook - Stride's strong price performance, consistent enrollment gains, favorable funding backdrop, and ongoing investments in technology position the company well for continued progress into fiscal 2026 [24][25] - The positive revisions in earnings estimates reflect growing confidence in Stride's near-term prospects, supported by stable demand and a constructive outlook for fiscal 2026 [24][18]

Industry Trend - The report questions whether the charter school business is cooling down [1]

Company Performance - Perdoceo Education (PRDO) has returned approximately 24.1% year-to-date, outperforming the Consumer Discretionary sector's average return of 11.8% [4] - The Zacks Consensus Estimate for PRDO's full-year earnings has increased by 1.2% over the past 90 days, indicating improving analyst sentiment [3] Industry Context - Perdoceo Education is part of the Schools industry, which consists of 18 individual stocks and currently ranks 33 in the Zacks Industry Rank, with an average gain of 8% this year [5] - The Consumer Discretionary sector includes 253 individual stocks and holds the 9 position in the Zacks Sector Rank [2] Comparison with Peers - Another notable performer in the Consumer Discretionary sector is Rush Street Interactive, Inc. (RSI), which has achieved a year-to-date return of 58.9% [4] - Rush Street Interactive is categorized under the Gaming industry, which has 39 stocks and is ranked 105, with an industry return of +24.3% since the beginning of the year [6]

Core Insights - The Zacks Schools industry is experiencing a rebound driven by increased demand for career-focused programs in healthcare, skilled trades, cybersecurity, and IT, supported by a labor market that values job-ready skills and government initiatives promoting non-degree pathways [1][2] - Digital innovation is a key differentiator, with institutions investing in adaptive learning tools and scalable online platforms to enhance engagement and support flexible learning for working adults [1][8] - The sector is undergoing consolidation as larger players acquire smaller institutions to broaden offerings and improve scale, with recent legislative changes like "Workforce Pell" expanding market opportunities for accredited programs [6][12] Industry Overview - The Zacks Schools industry includes for-profit education companies offering undergraduate, graduate, and specialized programs in various fields such as finance, healthcare, and technology [3] - The industry is focused on providing career-oriented programs that align with labor market needs, particularly in high-demand areas like nursing and cybersecurity [3][5] Trends Influencing Growth - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills over traditional degrees [4] - The healthcare sector is facing a significant shortage of skilled professionals, prompting educational institutions to design rigorous programs that meet workforce needs [5] - Digital transformation is driving interest in IT boot camps and tech-aligned certifications, where for-profit providers have established a scalable presence [4] Financial Performance and Market Position - The Zacks Schools industry has lagged the broader Zacks Consumer Discretionary sector but has outperformed the S&P 500 Composite over the past year, with a collective gain of 20.6% [16] - The industry's forward 12-month price-to-earnings ratio is currently at 15.32X, lower than the S&P 500's 22.76X, indicating potential value opportunities [19] Company Highlights - Grand Canyon Education has seen a 10% increase in total online enrollment and a 42.1% stock surge over the past year, with earnings for 2025 expected to grow by 12.8% [25] - Laureate Education's stock has rallied 76.6% over the past year, with a projected earnings growth of 28.2% for 2025 [28] - Stride has experienced a 107.8% stock increase, with fiscal 2026 earnings expected to grow by 5.2% [32] - Lincoln Educational Services has surged 59.5% in stock price, with a projected earnings growth of 19.6% for 2025 [34] - Perdoceo Education's stock has risen 44.7%, with earnings for 2025 expected to grow by 10% [39]