Workflow
Online and hybrid education models
icon
Search documents
Has Stride Found the Formula for a Sustainable School Choice?
ZACKSยท 2025-10-15 16:25
Core Insights - Stride, Inc. (LRN) focuses on online and hybrid education models to meet the increasing demand for flexibility, accessibility, and personalized learning [1] - The company is investing in various programs, particularly in career platforms and AI integration, to enhance customer outcomes and experiences [2] - Stride's fiscal 2025 performance showed a 20.4% year-over-year enrollment growth, with significant increases in both General Education (13.2%) and Career Learning (32.5%) segments [3] Business Initiatives - Stride is actively integrating AI into its tutoring model to improve service offerings and meet growing demand [2][3] - The K12 Tutoring service is becoming a key differentiator for Stride, positioning it favorably among competitors [2] Competitive Landscape - Stride competes with major players like Coursera, Inc. and Chegg, Inc., with its integrated K-12 and career learning model providing a competitive edge [5][7] - Coursera offers flexibility and global recognition, while Chegg focuses on direct-to-consumer subscription models for college support [6] Financial Performance - Stride's stock has increased by 41.1% year-to-date, outperforming the Zacks Schools industry and the S&P 500 Index [8] - Earnings estimates for fiscal 2026 and 2027 have risen to $8.81 and $9.71 per share, indicating year-over-year growth of 8.8% and 10.2% respectively [12] Valuation Metrics - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 16.13, which is a premium compared to industry peers [11]