Core Viewpoint - New Oriental Education (EDU) has shown strong performance in the Consumer Discretionary sector, outperforming its peers significantly in year-to-date returns [1][4]. Company Performance - New Oriental Education has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3]. - The Zacks Consensus Estimate for EDU's full-year earnings has increased by 5.6% in the past quarter, reflecting improved analyst sentiment [4]. - Year-to-date, EDU has returned 15.4%, while the average return for Consumer Discretionary stocks has been a loss of 5.2%, showcasing its superior performance [4]. Industry Context - New Oriental Education is part of the Schools industry, which consists of 17 stocks and currently ranks 84 in the Zacks Industry Rank [6]. - The average return for stocks in the Schools industry has been 5.9% this year, indicating that EDU is performing better than the industry average [6]. - In comparison, another stock in the Consumer Discretionary sector, Sleep Number (SNBR), has a year-to-date return of 39.6% and a Zacks Rank of 2 (Buy) [5].

Core Viewpoint - The article discusses the momentum investing strategy, highlighting New Oriental Education (EDU) as a promising stock with a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [2][3][12]. Company Performance - New Oriental Education's shares have increased by 4.7% over the past week, while the Zacks Schools industry has decreased by 1.41% during the same period [6]. - Over the last quarter, shares of EDU have risen by 12.52%, and over the past year, they have gained 27.06%, compared to the S&P 500's increases of 2.29% and 16.86%, respectively [7]. - The average 20-day trading volume for EDU is 1,075,201 shares, indicating a bullish sign as the stock is rising with above-average volume [8]. Earnings Outlook - In the past two months, four earnings estimates for EDU have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $3.56 to $3.74 [10]. - For the next fiscal year, four estimates have also moved upwards without any downward revisions [10]. Investment Recommendation - Given the positive momentum indicators and earnings outlook, New Oriental Education is recommended as a strong buy for investors looking for short-term opportunities [12].

Core Insights - Stride, Inc. (LRN) is experiencing a divergence in performance between its Career Learning and K-12 General Education segments, raising investor concerns about potential structural shifts [1] Segment Performance - The Career Learning segment is thriving, with enrollments increasing by 18.1% year-over-year to 111,100 students and revenues growing by 20.5% to $547.6 million during the first six months of fiscal 2026, driven by a shift towards virtual and alternative education models [2] - In contrast, the K-12 General Education segment saw only a 1.9% increase in enrollments and a 3% revenue improvement during the same period, indicating challenges in this core business [3] Management and Financial Outlook - Stride's operating leverage and disciplined cost management are providing support, as the company reaffirmed its full-year revenue guidance and raised its adjusted operating income outlook despite facing temporary headwinds [4] - The overall company enrollments increased by 8.6%, and withdrawal rates have returned to historical norms, suggesting that K-12 demand remains healthy [3] Competitive Landscape - Stride stands out in the education market by combining traditional online K-12 schooling with a rapidly expanding Career Learning segment, although it faces competition from companies like Coursera and Chegg [6] - Coursera has a strong demand for adult upskilling but faces modest revenue growth due to competition from free AI tools [7] - Chegg is experiencing challenges with declining revenues and workforce reductions as it pivots to new adult skills services amid market headwinds [8] Stock Performance and Valuation - Stride's stock has gained 21.9% over the past three months, outperforming the Zacks Schools industry and the broader market [9] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 9.73, indicating a discounted valuation compared to industry peers [12] Earnings Estimates - Earnings estimates for fiscal 2026 and fiscal 2027 have been revised upward, with expected year-over-year improvements of 3.2% and 10.7%, respectively [13]

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 Viewpoint - American Public Education (APEI) has shown strong stock performance, with a 15.6% increase over the past month and a new 52-week high of $44.88, outperforming the Zacks Consumer Discretionary sector and the Zacks Schools industry [1] Financial Performance - The company has consistently beaten earnings estimates, reporting an EPS of $0.3 against a consensus estimate of -$0.09 in its last earnings report on November 10, 2025, and exceeding revenue estimates by 1.62% [2] - For the current fiscal year, APEI is projected to earn $2.23 per share on revenues of $642.33 million, with a year-over-year earnings growth of 106.51%. For the next fiscal year, earnings are expected to rise to $2.64 per share on revenues of $687.98 million, reflecting a 7.11% increase [3] Valuation Metrics - APEI currently trades at 18.8 times the current fiscal year EPS estimates, which is above the peer industry average of 14.2 times. On a trailing cash flow basis, it trades at 20.1 times compared to the peer group's average of 12.8 times. The stock has a PEG ratio of 1.25, indicating it is not in the top tier from a value perspective [7] Style Scores and Zacks Rank - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6] - APEI holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable option for investors [8][9]

Core Insights - The education market is experiencing a shift towards online education alternatives, particularly for career learning, benefiting companies like Stride, Inc. and Strategic Education, Inc. [1] Group 1: Company Overview - Stride, Inc. focuses on K-12 virtual schooling and career-learning programs primarily in the United States [2] - Strategic Education offers post-secondary education and academic programs, including business administration, IT, and nursing, through both physical campuses and online platforms [2] Group 2: Market Trends and Regulatory Developments - The U.S. Department of Education's formation of the Accreditation, Innovation and Modernization (AIM) committee aims to reform higher education accreditation, promoting high-quality, data-driven programs and reducing bureaucratic barriers [3] - This initiative is expected to enhance workforce skills and increase demand for services from education providers like Stride and Strategic Education [3] Group 3: Stride, Inc. Performance - Stride is benefiting from a sustained shift towards virtual education, with high parental dissatisfaction with traditional K-12 education driving enrollment towards online options [5] - The Career Learning segment has seen enrollments increase by 18.1% year-over-year to 111,100 students, with revenues growing by 20.5% to $547.6 million in the first half of fiscal 2026 [6] - Stride's adjusted operating income and adjusted EBITDA grew by 23.8% and 21.3% year-over-year, respectively, with a revised full-year revenue guidance indicating confidence in execution [7] - The company has authorized a stock repurchase program of up to $500 million, reflecting management's confidence in long-term value creation [8] Group 4: Strategic Education Performance - Strategic Education's employer-affiliated enrollment reached 32.7% of the U.S. Higher Education segment, up from 29.8% year-over-year, indicating robust growth driven by employer partnerships [11] - The Education Technology Services segment's revenues grew by 46.8% year-over-year, supported by new employer partnerships and increased subscriptions [11] - Innovations like FlexPath and programs such as Workforce Edge and RightSkill are contributing to Strategic Education's growth and aligning with workforce upskilling trends [12][13] Group 5: Financial Metrics and Valuation - Stride's trailing 12-month Return on Equity (ROE) is 26.2%, significantly higher than Strategic Education's average, indicating better efficiency in generating shareholder returns [22] - Stride's earnings estimates for fiscal 2026 and 2027 have improved by 3.7% and 9.2%, respectively, while Strategic Education's estimates have remained unchanged [20][22] - Stride's stock offers a discounted valuation with stronger growth potential, while Strategic Education presents a steadier growth trajectory but at a premium valuation [19][26]

Core Insights - Adtalem Global Education reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.19 per share, and showing an increase from $1.81 per share a year ago, resulting in an earnings surprise of +11.21% [1] - The company achieved revenues of $503.39 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.17% and up from $447.73 million year-over-year [2] - Adtalem's stock has increased approximately 11.4% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.09 on revenues of $488.26 million, while for the current fiscal year, the estimate is $7.85 on revenues of $1.92 billion [7] - The estimate revisions trend for Adtalem was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Schools industry, to which Adtalem belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Nerdy Inc., is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year change of +33.3%, with revenues projected at $45.71 million, down 4.8% from the previous year [9]

分组1 - K12 reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and showing an increase from $2.03 per share a year ago, representing an earnings surprise of +7.14% [1] - The company achieved revenues of $631.26 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.62% and up from $587.21 million year-over-year [2] - K12 has outperformed the S&P 500 with a share price increase of about 10.3% since the beginning of the year, compared to the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $2.37 on revenues of $635.84 million, and for the current fiscal year, it is $8.35 on revenues of $2.52 billion [7] - The Zacks Industry Rank indicates that the Schools industry is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Core Viewpoint - Lincoln Educational Services Corporation (LINC) shares experienced a significant increase of 6.3% to $26.71, supported by higher-than-average trading volume, reflecting positive investor sentiment and growth potential [1][2]. Company Performance - The stock's recent performance includes a 7.8% gain over the past four weeks, indicating a strong upward trend [1]. - LINC is projected to report quarterly earnings of $0.42 per share, representing a year-over-year increase of 35.5%, with expected revenues of $132.27 million, up 10.8% from the previous year [3]. Growth Drivers - The company's focus on expanding and diversifying service offerings, along with ongoing campus developments in locations like Houston and Levittown, is expected to enhance enrollment and revenue potential [2]. - The operational leverage from the Lincoln 10.0 hybrid model has contributed to positive growth trends, further boosting investor optimism [2]. Earnings Estimates - The consensus EPS estimate for LINC has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4]. - Trends in earnings estimate revisions are closely correlated with near-term stock price movements, indicating that monitoring these trends is crucial for assessing future stock performance [3][4]. Industry Context - LINC holds a Zacks Rank of 1 (Strong Buy), positioning it favorably within the Zacks Schools industry [5]. - Another company in the same industry, Adtalem Global Education (ATGE), has also shown positive performance, with a 2.4% increase in its stock price and a 14.7% return over the past month [5].

Company Performance - American Public Education (APEI) shares have increased by 7.9% over the past month, reaching a new 52-week high of $40.76 [1] - The company has gained 7.4% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector (2.6%) and the Zacks Schools industry (2.1%) [1] Earnings and Revenue - APEI has consistently beaten earnings estimates, reporting EPS of $0.3 against a consensus estimate of -$0.09 in its last earnings report [2] - For the current fiscal year, APEI is expected to post earnings of $2.22 per share on revenues of $642.33 million, with a year-over-year earnings growth of 106.05% [3] - For the next fiscal year, earnings are projected to be $2.75 per share on revenues of $687.89 million, representing a year-over-year change of 7.09% [3] Valuation Metrics - APEI currently trades at 18.3X current fiscal year EPS estimates, which is above the peer industry average of 14.8X [7] - The stock has a trailing cash flow multiple of 19.5X compared to the peer group's average of 12.6X, and a PEG ratio of 1.22 [7] Zacks Rank and Style Scores - APEI holds a Zacks Rank of 1 (Strong Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - The Schools industry is performing well, ranking in the top 42% of all industries, providing favorable conditions for APEI and its peers [12] - Legacy Education Inc. (LGCY), a peer in the industry, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, indicating a competitive landscape [10][11]