These 6 School Stocks Are Worth Considering
Zacks Investment Research | Jun 28, 2019 02:58AM ET
The neat thing about investing is that there are so many industries, situations and sentiments to pick from that in any given situation, there are things you can do to increase your capital. Finding the right stocks is the key to the situation.
Today, I like school stocks, and why do I like them? Well because everyone is so concerned escalating trade tensions with China that they feel insecure about the future. And when you feel insecure, you try to upgrade or add to your skills. And guess who makes money from that.
So how bad is it?
The Conference Board’s consumer confidence index declined to 121.5 in June, a 21-month low. That’s also way below the 131.1 that analysts polled by Reuters were looking for and the 131.3 posted in May.
Senior director Lynn Franco said that “Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”
From the release: “Consumers' appraisal of current-day conditions declined in June. Those claiming business conditions are 'good' decreased from 38.4 percent to 36.7 percent, however, those saying business conditions are 'bad' also decreased, from 11.7 percent to 10.9 percent. Consumers' assessment of the labor market was also somewhat less upbeat. Those saying jobs are 'plentiful' decreased from 45.3 percent to 44.0 percent, while those claiming jobs are 'hard to get' rose from 11.8 percent to 16.4 percent.”
So there you have it. People are getting more concerned about how far their current qualifications will get them. This seems like quite the time to get into schools, so here are a few with attractive Zacks ranks-
Strategic Education Inc. (NASDAQ:STRA)
Headquartered in Herndon, Virginia, Strategic Education offers working adults undergraduate and graduate degree programs in business and public administration, accounting and information technology.
Financial considerations-
Zacks Rank #1
Growth Score A
Revenue and earnings are expected to increase a respective 55.68% and 36.21% in 2019
Average 4-quarter earnings surprise is 12.24%
The 2019 EPS is up 43 cents (7.1%) in the last 60 days
YogaWorks, Inc. (NASDAQ:YOGA)
Based in Culver City, YogaWorks as the name indicates, operates in the fast growing yoga instruction space. It offers yoga classes, integrated fitness classes, workshops, teacher training programs and yoga-related retail merchandise through its Yoga Works and Yoga Tree studios. The company operates primarily in Los Angeles, Orange County, New York City, Northern California, Boston and Baltimore/Washington D.C.
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Zacks Rank #1
Momentum Score B
The earnings surprise trend is improving (+8.00% and +10.53% in the last two quarters)
Loss per share is expected to go down significantly from 88 cents last year to 73 cents in 2019 as revenue remains more or less steady.
Bright Horizons Family Solutions Inc. (NYSE:BFAM)
Bright Horizons Family Solutions is also likely to benefit from the trend as it takes care of your kids while you work longer hours. Based in Watertown, Massachusetts, the company manages child care centers for corporations, hospitals, universities and government agencies. It focuses on employer-sponsored child care, early education (infant/toddler/preschool care and education, kindergarten, school-age), summer camps, full and part-time child care, and backup care. The company operates primarily in North America, Europe and India.
Zacks Rank #2
Growh Score B
Revenue and earnings expected to grow 8.57% and 12.77%, respectively in 2019
The last four quarters’ average earnings surprise is 3.01%
Career Education Corporation (NASDAQ:CECO)
Career Education Co. operates through the American InterContinental UniversityR (AIU) and Colorado Technical UniversityR (CTU). It provides degrees, masters and doctoral levels of education in a career-focused environment. It also has the intellipathTM adaptive learning platform that allows students to collect course credit for knowledge they can demonstrate.
Zacks Rank #2
Growth Score A
Revenue and earnings expected to be up a respective 3.48% and 11.43% in 2019
The average 4-quarter EPS surprise is 2.83%
The 2019 EPS estimate is up 2 cents to $1.17 in the last 60 days
Grand Canyon Education, Inc. (NASDAQ:LOPE)
Grand Canyon Education, Inc. is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business and healthcare. In addition to its online programs, it offers programs at its traditional campus in Phoenix, Arizona and onsite at the facilities of employers.
Zacks Rank #2
Revenue and earnings expected to be up a respective -8.16% and 11.11% in 2019
The average 4-quarter EPS surprise is 8.76%
The 2019 EPS estimate is up 12 cents (2.34%)
Lincoln Educational Services Corporation (NASDAQ:LINC)
Lincoln Educational is a leading and diversified for-profit provider of a career-oriented post-secondary education headquartered in West Orange, New Jersey. It offers recent high school graduates and working adults degree and diploma programs in four principal areas of study: automotive technology, allied health (which includes programs for medical administrative assistants, medical assistants, pharmacy technicians and massage therapists), skilled trades and business and information technology.
Zacks Rank #2
Momentum Score A
Revenue and earnings expected to be up a respective 2.82% and 148.15% in 2019
2019 EPS remains unchanged
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