For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is New Oriental Education (EDU) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.New Oriental Education is a member of the Consumer Discretionary sector. This group includes 256 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank considers 16 different groups, measu ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cintas (CTAS) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.Cintas is a member of our Consumer Discretionary group, which includes 256 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sec ...

Core Insights - Stride, Inc. (LRN) has experienced a significant rebound, with a 20% increase in stock price over the past month, outperforming both the Zacks Schools industry and the S&P 500, currently trading around $84.45, still below its 52-week high of $171.17 [1][4]. Financial Performance - Stride's second-quarter fiscal 2026 results show a 7.5% year-over-year revenue growth to $631.3 million, with adjusted operating income rising 17% to $159.0 million and adjusted EBITDA increasing 17% to $188.1 million [8][9]. - For the first half of fiscal 2026, revenue grew 10% to $1.25 billion, and net income increased by 22.6% year-over-year to $168.3 million, driven by disciplined cost management and strong enrollment momentum [9]. - Total enrollments reached a record 248.5K, up 7.8% year-over-year, with Career Learning enrollments rising 17.6% to 111.5K, indicating strong demand for job-focused education [9][11]. Operational Improvements - Stride has resolved previous platform issues, significantly reducing login-related calls by 90%, which enhances user experience and stabilizes operations [7][15]. - Management has reaffirmed fiscal 2026 revenue guidance of $2.48-$2.555 billion and raised adjusted operating income guidance to $485-$505 million, reflecting confidence in overcoming operational challenges [10]. Market Demand and Trends - The long-term outlook for Stride is supported by structural demand for virtual and alternative education, with strong application volumes indicating healthy organic demand [11]. - Enrollment trends show growth in Career Learning, with a 29.3% year-over-year revenue increase, while General Education revenue declined by 3.6% due to mix and funding timing [12]. Financial Strength and Capital Allocation - Stride ended the fiscal second quarter with $676 million in cash and equivalents, maintaining a low leverage ratio of 0.07X, allowing for flexibility in investments and buybacks [16]. - The board has authorized a $500 million share repurchase program, with approximately $89 million completed as of December 31, 2025, providing downside support while funding growth initiatives [17]. Valuation Insights - LRN trades at a forward P/E of 9.47X, below the industry average of 12.66X and its three-year median of 14.06X, indicating that current valuation levels are neither distressed nor overly stretched [18]. - The Zacks Consensus Estimate for fiscal 2026 EPS has increased to $8.36, projecting a 3.2% growth year-over-year, with revenue growth of approximately 5% [21].

分组1 - Legacy Education Inc. reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of +15.39% [1] - The company achieved revenues of $19.19 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.48%, and up from $13.64 million year-over-year [2] - Legacy Education Inc. has outperformed the market with a 3% increase in share price since the beginning of the year, compared to the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $19.5 million, and for the current fiscal year, it is $0.66 on revenues of $76.6 million [7] - The Zacks Industry Rank for Schools is in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Legacy Education Inc. holds a Zacks Rank 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]

Core Insights - Stride, Inc. (LRN) is overcoming recent platform disruptions, with management reporting significant resolution of core technical issues and improvements in customer support metrics and user feedback [1][4] - The company has experienced a 10% year-over-year revenue growth to $1.25 billion in the first half of fiscal 2026, with adjusted operating income and adjusted EBITDA increasing by 23.8% and 21.3%, respectively [2] - Total enrollments reached 248,300, marking an 8.6% increase, while withdrawal rates have returned to historical norms [2] - Stride has reaffirmed its fiscal 2026 revenue guidance of $2.48-$2.56 billion and raised adjusted operating income expectations to $485-$505 million, indicating confidence in its operational stability [3] Financial Performance - Stride's revenues for the first six months of fiscal 2026 grew to $1.25 billion, with adjusted operating income and adjusted EBITDA rising by 23.8% and 21.3% respectively [2] - The company expects adjusted operating income for fiscal 2026 to be in the range of $485-$505 million, an increase from previous expectations [3] - Earnings estimates for fiscal 2026 and fiscal 2027 have improved, indicating year-over-year growth of 3.2% and 10.7% respectively [12] Competitive Landscape - Stride competes with major online education players like Coursera and Udemy, with a focus on career-oriented digital learning [5] - Coursera offers a wide range of university-backed degrees and emphasizes AI-driven personalized learning, while Udemy provides a flexible marketplace for professional development [6][7] - Stride's platform is positioned uniquely amid strong market trends towards skills-based education [5] Stock Performance - Stride's stock has increased by 31.4% over the past six months, outperforming the Zacks Schools industry and the broader market [8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 9.82, indicating a discount compared to industry peers [11]

Core Insights - Adtalem Global Education (ATGE) is rebranding to Covista, focusing on healthcare education and workforce development in response to the growing demand for trained medical professionals in the U.S. The new name will be effective from February 24, 2026, with shares trading under the ticker CVSA on the New York Stock Exchange [1][11]. Group 1: Company Strategy and Operations - Covista's operations are now aligned to address the national healthcare workforce shortage while expanding training capacity and supporting long-term talent supply [2]. - The new brand emphasizes healthcare focus, institutional reach, and clinical depth, particularly supporting underserved students such as working parents and career changers [3]. - Covista has introduced a multi-year commitment called Covista Open Doors, aimed at building and sustaining the healthcare workforce through career exploration, financial support, and mental health programs [10][12]. Group 2: Workforce Research Findings - Covista's research highlights a significant healthcare workforce crisis, with 76% of clinicians and 73% of executives indicating that staffing shortages negatively impact care quality [4][11]. - There are over 702,000 healthcare jobs posted monthly, while around 306,000 unemployed healthcare workers are available, indicating a severe mismatch in supply and demand [6]. - Rural healthcare executives face greater challenges in finding local talent, with 85% reporting difficulties compared to 45% in metropolitan areas [8]. Group 3: Technology and Future Outlook - The adoption of artificial intelligence in healthcare is seen positively by executives, but many believe it will not fully resolve staffing gaps [7]. - Covista's initial actions include partnerships to encourage healthcare careers and the establishment of a Student Emergency Care Fund to support healthcare workers [12].

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]