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Chicago, IL – June 6, 2024 – Today, Zacks Investment Ideas feature highlights Stride (LRN - Free Report) .
Buy This Soaring Top-Ranked Stock Now for Incredible Value
Stride 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.
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.
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%.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Stride
For Immediate Release
Chicago, IL – June 6, 2024 – Today, Zacks Investment Ideas feature highlights Stride (LRN - Free Report) .
Buy This Soaring Top-Ranked Stock Now for Incredible Value
Stride 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.
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.
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%.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.