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PowerSchool (PWSC) Expands Into LATAM With AI Solutions

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PowerSchool Holdings, Inc. (PWSC - Free Report) , a leading provider of cloud-based K-12 education software in North America, has announced a major expansion into the Latin America (LATAM) region. This strategic move includes six new partnerships with schools in Belize, Honduras, St. Maarten, Mexico, Panama, and Venezuela, showcasing the company’s game-changing AI assistant, PowerBuddy, and its unified communications platform, MyPowerHub.

Driving Modernization Through AI

By entering these new markets, PowerSchool positions itself at the forefront of educational modernization in LATAM. Schools in the region are increasingly embracing AI and data-driven solutions to streamline administrative tasks, enhance communication, and improve student outcomes. PowerBuddy, PowerSchool’s AI assistant, helps schools personalize learning experiences and improve efficiency, while MyPowerHub enables seamless data integration, connecting parents, students, and educators.

First Adopters in Honduras and St. Maarten, Modernizing Schools in Mexico and Panama

Key to this expansion is the adoption of PowerBuddy by the International School of Tegucigalpa in Honduras, marking the first implementation of this AI tool in the region. The school, Honduras’ largest international institution, aims to use AI to foster student engagement and provide educators with powerful tools for personalized learning. In St. Maarten, PowerSchool’s solutions, including Schoology Learning and PowerBuddy, will support educators by automating tasks like creating engaging assignments, freeing up teachers to focus on instruction.

Meanwhile, schools in Mexico and Panama have turned to PowerSchool to replace outdated systems. Northridge School in Mexico and El Colegio de Panama have implemented multiple PowerSchool solutions to streamline administrative processes and enhance educational delivery. This investment in technology positions them to manage data more effectively and reduce manual workloads.

With its continued innovation and expansion into LATAM, PowerSchool is poised to strengthen its market presence and support the digital transformation of education in the region, creating long-term growth opportunities.

Price Performance

Shares of this cloud-based education software provider have gained 19.3% in the past three months against the Zacks Schools industry’s 7.5% decline. The company has been benefiting from the continuous strength in the market demand for its suite of mission-critical products, along with its focus on operating leverage. Furthermore, consistent contract wins, accompanied by advanced AI solutions enhancements and opportunities in its market, bode well for PWSC’s prospects.
 

Zacks Investment Research
Image Source: Zacks Investment Research

Considering the estimate revision trend, the Zacks Consensus Estimate for 2024 and third-quarter earnings per share of PWSC have trended upward to 90 cents (from 63 cents) and 25 cents (from 18 cents), over the past 30 days, respectively. The estimated figures indicate 9.8% and 4.2% growth, respectively, from the year-ago period’s reported levels. Such an uptrend depicts analysts’ optimism about the stock’s potential.

In June 2024, PowerSchool announced that it had entered into a definitive agreement and would be acquired by Bain Capital for a total value of $5.6 billion. Although PWSC is set to be acquired, it will continue to remain a standalone company with no interruptions in its business operations and customer service.

Zacks Rank & Key Picks

PowerSchool currently carries a Zacks Rank #3 (Hold).

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The consensus estimate for LRN’s fiscal 2025 sales and EPS implies a rise of 6.3% and 7.7%, respectively, from the year-ago levels.

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The consensus estimate for BFAM’s 2024 sales and EPS implies a rise of 10.9% and 18.7%, respectively, from the year-ago levels.

Grand Canyon Education (LOPE - Free Report) presently carries a Zacks Rank of 2. LOPE has a trailing four-quarter earnings surprise of 10.2%, on average. The stock has lost 1.2% in the past three months.

The consensus estimate for LOPE’s 2024 sales and EPS implies a rise of 7.2% and 13.4%, respectively, from the year-ago levels.

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