Core Insights - Strategic Education (STRA) reported quarterly earnings of $1.74 per share, exceeding the Zacks Consensus Estimate of $1.47 per share, and showing an increase from $1.27 per share a year ago, resulting in an earnings surprise of +18.10% [1] - The company achieved revenues of $323.21 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.04% and increasing from $311.46 million year-over-year [2] - Strategic Education has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Strategic Education's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.40, with expected revenues of $314.78 million, and for the current fiscal year, the EPS estimate is $6.48 on revenues of $1.32 billion [7] Industry Context - The Schools industry, to which Strategic Education belongs, is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Betterware de Mexico SAPI de C (BWMX) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Betterware de Mexico SAPI de C is a member of the Consumer Discretionary sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank considers 16 different sector gro ...

Core Insights - Stride, Inc. (LRN) is adopting a stability-first strategy for enrollment, focusing on operational consistency rather than aggressive expansion [1][5][6] Enrollment Performance - In fiscal Q2 2026, total enrollments reached approximately 248,500, reflecting a 7.8% increase year-over-year and slight growth from Q1 [2][11] - Strong application volumes helped mitigate attrition, and withdrawal trends returned to historical norms, allowing the company to maintain restrained enrollment growth [2][5] - Career Learning programs experienced stronger enrollment growth, while General Education faced modest pressure, affecting overall enrollment dynamics [4][11] Demand Indicators - Demand indicators remain positive, with application volumes near record levels despite reduced marketing efforts, indicating sustained interest in the company's offerings [3][5] - The decision to limit enrollment growth is aimed at allowing operations to stabilize and reduce the risk of enrollment volatility [5][6] Competitive Landscape - Stride operates in a competitive online education market, facing competition from Coursera, Inc. and Strategic Education, Inc., which are expanding their offerings [7] - Stride differentiates itself by integrating academic programs with tutoring and support services, enhancing enrollment consistency in career-focused pathways [8] Technological Advancements - Stride is leveraging AI to personalize learning, improve tutoring, and streamline administrative processes, which supports operational efficiency and scalability [9] Stock Performance and Valuation - Stride's stock has increased by 28.4% over the past three months, outperforming the Zacks Schools industry and the broader market [10] - The stock is currently trading at a forward P/E ratio of 9.04, indicating a discount compared to industry peers [12] Earnings Estimates - Earnings estimates for fiscal 2026 and 2027 have been revised upward, projecting year-over-year improvements of 3.2% and 10.7%, respectively [14]

Lincoln Educational Services Corporation (LINC) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +19.05%. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.2, delivering a surprise of +66.67%.Over the last fo ...

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is New Oriental Education (EDU) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.New Oriental Education is a member of the Consumer Discretionary sector. This group includes 256 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank considers 16 different groups, measu ...

Group 1: Company Performance - Cintas (CTAS) has returned 2.9% year-to-date, outperforming the average loss of 4.6% in the Consumer Discretionary group [4] - The Zacks Consensus Estimate for Cintas' full-year earnings has increased by 0.8% over the past 90 days, indicating improving analyst sentiment [3] - Cintas currently holds a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [3] Group 2: Industry Context - Cintas is part of the Textile - Apparel industry, which has gained an average of 3.3% year-to-date, indicating that Cintas is slightly underperforming its industry [5] - The Consumer Discretionary group includes 256 companies and is currently ranked 8 in the Zacks Sector Rank [2] - Another stock in the Consumer Discretionary sector, Legacy Education Inc. (LGCY), has outperformed the sector with a year-to-date return of 13.4% [4]

Core Insights - Stride, Inc. (LRN) has experienced a significant rebound, with a 20% increase in stock price over the past month, outperforming both the Zacks Schools industry and the S&P 500, currently trading around $84.45, still below its 52-week high of $171.17 [1][4]. Financial Performance - Stride's second-quarter fiscal 2026 results show a 7.5% year-over-year revenue growth to $631.3 million, with adjusted operating income rising 17% to $159.0 million and adjusted EBITDA increasing 17% to $188.1 million [8][9]. - For the first half of fiscal 2026, revenue grew 10% to $1.25 billion, and net income increased by 22.6% year-over-year to $168.3 million, driven by disciplined cost management and strong enrollment momentum [9]. - Total enrollments reached a record 248.5K, up 7.8% year-over-year, with Career Learning enrollments rising 17.6% to 111.5K, indicating strong demand for job-focused education [9][11]. Operational Improvements - Stride has resolved previous platform issues, significantly reducing login-related calls by 90%, which enhances user experience and stabilizes operations [7][15]. - Management has reaffirmed fiscal 2026 revenue guidance of $2.48-$2.555 billion and raised adjusted operating income guidance to $485-$505 million, reflecting confidence in overcoming operational challenges [10]. Market Demand and Trends - The long-term outlook for Stride is supported by structural demand for virtual and alternative education, with strong application volumes indicating healthy organic demand [11]. - Enrollment trends show growth in Career Learning, with a 29.3% year-over-year revenue increase, while General Education revenue declined by 3.6% due to mix and funding timing [12]. Financial Strength and Capital Allocation - Stride ended the fiscal second quarter with $676 million in cash and equivalents, maintaining a low leverage ratio of 0.07X, allowing for flexibility in investments and buybacks [16]. - The board has authorized a $500 million share repurchase program, with approximately $89 million completed as of December 31, 2025, providing downside support while funding growth initiatives [17]. Valuation Insights - LRN trades at a forward P/E of 9.47X, below the industry average of 12.66X and its three-year median of 14.06X, indicating that current valuation levels are neither distressed nor overly stretched [18]. - The Zacks Consensus Estimate for fiscal 2026 EPS has increased to $8.36, projecting a 3.2% growth year-over-year, with revenue growth of approximately 5% [21].

分组1 - Legacy Education Inc. reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of +15.39% [1] - The company achieved revenues of $19.19 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.48%, and up from $13.64 million year-over-year [2] - Legacy Education Inc. has outperformed the market with a 3% increase in share price since the beginning of the year, compared to the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $19.5 million, and for the current fiscal year, it is $0.66 on revenues of $76.6 million [7] - The Zacks Industry Rank for Schools is in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Legacy Education Inc. holds a Zacks Rank 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]

Core Insights - Stride, Inc. (LRN) is overcoming recent platform disruptions, with management reporting significant resolution of core technical issues and improvements in customer support metrics and user feedback [1][4] - The company has experienced a 10% year-over-year revenue growth to $1.25 billion in the first half of fiscal 2026, with adjusted operating income and adjusted EBITDA increasing by 23.8% and 21.3%, respectively [2] - Total enrollments reached 248,300, marking an 8.6% increase, while withdrawal rates have returned to historical norms [2] - Stride has reaffirmed its fiscal 2026 revenue guidance of $2.48-$2.56 billion and raised adjusted operating income expectations to $485-$505 million, indicating confidence in its operational stability [3] Financial Performance - Stride's revenues for the first six months of fiscal 2026 grew to $1.25 billion, with adjusted operating income and adjusted EBITDA rising by 23.8% and 21.3% respectively [2] - The company expects adjusted operating income for fiscal 2026 to be in the range of $485-$505 million, an increase from previous expectations [3] - Earnings estimates for fiscal 2026 and fiscal 2027 have improved, indicating year-over-year growth of 3.2% and 10.7% respectively [12] Competitive Landscape - Stride competes with major online education players like Coursera and Udemy, with a focus on career-oriented digital learning [5] - Coursera offers a wide range of university-backed degrees and emphasizes AI-driven personalized learning, while Udemy provides a flexible marketplace for professional development [6][7] - Stride's platform is positioned uniquely amid strong market trends towards skills-based education [5] Stock Performance - Stride's stock has increased by 31.4% over the past six months, outperforming the Zacks Schools industry and the broader market [8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 9.82, indicating a discount compared to industry peers [11]

Core Insights - Adtalem Global Education (ATGE) is rebranding to Covista, focusing on healthcare education and workforce development in response to the growing demand for trained medical professionals in the U.S. The new name will be effective from February 24, 2026, with shares trading under the ticker CVSA on the New York Stock Exchange [1][11]. Group 1: Company Strategy and Operations - Covista's operations are now aligned to address the national healthcare workforce shortage while expanding training capacity and supporting long-term talent supply [2]. - The new brand emphasizes healthcare focus, institutional reach, and clinical depth, particularly supporting underserved students such as working parents and career changers [3]. - Covista has introduced a multi-year commitment called Covista Open Doors, aimed at building and sustaining the healthcare workforce through career exploration, financial support, and mental health programs [10][12]. Group 2: Workforce Research Findings - Covista's research highlights a significant healthcare workforce crisis, with 76% of clinicians and 73% of executives indicating that staffing shortages negatively impact care quality [4][11]. - There are over 702,000 healthcare jobs posted monthly, while around 306,000 unemployed healthcare workers are available, indicating a severe mismatch in supply and demand [6]. - Rural healthcare executives face greater challenges in finding local talent, with 85% reporting difficulties compared to 45% in metropolitan areas [8]. Group 3: Technology and Future Outlook - The adoption of artificial intelligence in healthcare is seen positively by executives, but many believe it will not fully resolve staffing gaps [7]. - Covista's initial actions include partnerships to encourage healthcare careers and the establishment of a Student Emergency Care Fund to support healthcare workers [12].