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Buy this Soaring Top-Ranked Stock Now for Incredible Value

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Stride (LRN - Free Report) soared 20% since its Q1 release in late April to hit record highs. The digital education firm has surged 135% in the past three years and LRN outclimbed the S&P 500 over the past decade.

Stride, which lands a Zacks Rank #1 (Strong Buy), looks worth considering for many reasons, including its incredible value.  

The Basics

Stride’s digital education services attract students of all ages in the U.S. and globally. LRN’s growing portfolio serves K–12 students and parents, adult learners, school districts, businesses, the military, and beyond.

Stride is expanding as more people dive into digital education and reevaluate college amid skyrocketing costs. Stride is gaining steam in its career learning segment, especially from its Middle-High School cohort.

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On top of that, the firm is capitalizing on the digitalization of the U.S. economy, offering courses such as MedCerts to help people land a new career in healthcare or IT and Tech Elevator, which boasts that it helps students become a skilled coder in 14 weeks.

Growth

Stride grew its revenue from $400 million in 2010 to $1.84 billion last year. Its sales popped 9% in FY23 and 10% in FY22, after soaring 48% in FY21 when the Covid pandemic permanently reshaped education and the workplace. Stride is projected to grow its revenue by 11% in FY24 and 7% in FY25 to reach $2.2 billion vs. $1.0 billion in pre-Covid FY19.

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Stride topped our Q1 FY24 EPS estimate and boosted its earnings guidance again. Stride’s 2024 adjusted EPS estimate has soared 47% over the last year, with its 2025 figure 36% higher. The bottom-line positivity helps it land a Zacks Rank #1 (Strong Buy) right now. LRN’s adjusted earnings are expected to soar by 53% in FY24 and 10% in FY25, driven by improving sales and margins.

Other Fundamentals

Stride stock has climbed 133% in the last three years to blow away the benchmark’s 25%, including a 63% surge during the past 12 months, topping its highly-ranked Schools industry’s 40%.

The online education standout is not just a post-Covid success. LRN has climbed 187% in the past decade to slightly outpace the S&P 500 and crush its industry’s 26%.

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Image Source: Zacks Investment Research

Stride stock had unperformed the market in 2024 until it surged following its big beat-raise earnings report. LRN trades around 6% below its recent highs and 7% below its average Zacks price target. LRN is now trading at neutral RSI levels and investors might want to take advantage of any possible pullback to its 50-day or 200-day moving averages.

Its soaring earnings outlook helps LRN trade near all-time lows at 13.8X forward 12-month earnings despite trading within touching distance of its recent records. Stride trades at a 75% discount to its highs, 50% below its 10-year median, and 30% below its highly-ranked industry.

Bottom Line

Stride is growing its reach through expanded offerings in a rapidly evolving world of education where more people are turning to digital education across different ages and demographics. Now might be time for investors to consider buying LRN and holding the stock that is also supported by a sturdy balance sheet. 


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