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Perdoceo Education Corporation (PRDO) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Perdoceo Education (PRDO - Free Report) ? Shares have been on the move with the stock up 40% over the past month. The stock hit a new 52-week high of $24.66 in the previous session. Perdoceo Education has gained 38.6% since the start of the year compared to the -3% move for the Zacks Consumer Discretionary sector and the 6.8% return for the Zacks Schools industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2024, Perdoceo Education reported EPS of $0.6 versus consensus estimate of $0.53 while it beat the consensus revenue estimate by 1.18%.
For the current fiscal year, Perdoceo Education is expected to post earnings of $2.21 per share on $650.88 million in revenues. This represents a 5.24% change in EPS on a -8.33% change in revenues. For the next fiscal year, the company is expected to earn $2.34 per share on $676.92 million in revenues. This represents a year-over-year change of 5.88% and 4%, respectively.
Valuation Metrics
Perdoceo Education may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Perdoceo Education has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.1X. On a trailing cash flow basis, the stock currently trades at 10.1X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 0.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Perdoceo Education currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Perdoceo Education meets the list of requirements. Thus, it seems as though Perdoceo Education shares could have a bit more room to run in the near term.
How Does PRDO Stack Up to the Competition?
Shares of PRDO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Strategic Education Inc. (STRA - Free Report) . STRA has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Strategic Education Inc. beat our consensus estimate by 85%, and for the current fiscal year, STRA is expected to post earnings of $5.01 per share on revenue of $1.2 billion.
Shares of Strategic Education Inc. have gained 16.6% over the past month, and currently trade at a forward P/E of 24.08X and a P/CF of 20.05X.
The Schools industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRDO and STRA, even beyond their own solid fundamental situation.
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Perdoceo Education Corporation (PRDO) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Perdoceo Education (PRDO - Free Report) ? Shares have been on the move with the stock up 40% over the past month. The stock hit a new 52-week high of $24.66 in the previous session. Perdoceo Education has gained 38.6% since the start of the year compared to the -3% move for the Zacks Consumer Discretionary sector and the 6.8% return for the Zacks Schools industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2024, Perdoceo Education reported EPS of $0.6 versus consensus estimate of $0.53 while it beat the consensus revenue estimate by 1.18%.
For the current fiscal year, Perdoceo Education is expected to post earnings of $2.21 per share on $650.88 million in revenues. This represents a 5.24% change in EPS on a -8.33% change in revenues. For the next fiscal year, the company is expected to earn $2.34 per share on $676.92 million in revenues. This represents a year-over-year change of 5.88% and 4%, respectively.
Valuation Metrics
Perdoceo Education may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Perdoceo Education has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.1X. On a trailing cash flow basis, the stock currently trades at 10.1X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 0.73. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Perdoceo Education currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Perdoceo Education meets the list of requirements. Thus, it seems as though Perdoceo Education shares could have a bit more room to run in the near term.
How Does PRDO Stack Up to the Competition?
Shares of PRDO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Strategic Education Inc. (STRA - Free Report) . STRA has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Strategic Education Inc. beat our consensus estimate by 85%, and for the current fiscal year, STRA is expected to post earnings of $5.01 per share on revenue of $1.2 billion.
Shares of Strategic Education Inc. have gained 16.6% over the past month, and currently trade at a forward P/E of 24.08X and a P/CF of 20.05X.
The Schools industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRDO and STRA, even beyond their own solid fundamental situation.