For Immediate Release
Chicago, IL – August 13, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Career Education Corp. PRDO, Chegg Inc. CHGG, GP Strategies Corp. GPX and Grand Canyon Education, Inc. LOPE.
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Watch as Online Education Gains Traction
The United States is still unsure when to open schools. With coronavirus cases continuing to rise, new decisions are being announced daily and school districts are still unsure if it will be safe to open the campuses. Most states are pondering over a gradual resumption of campus opening after fall.
That said, the education system cannot stop and students will continue to learn remotely. This new normal may even lead to a hybrid form of education, combining online and in-person learning.
Students Prefer Virtual Schooling
According to a CNBC report, citing a study by Burbio, which aggregates school and community calendars nationwide, 52% of students would go to school virtually only and just 25% want to attend every day. Another 19% would have some form of hybrid schooling, combining online and in-person learning. The remaining 4% of districts remain undecided.
Moreover, the study found that the 200 largest districts were two-thirds virtual despite a decision by the New York government. New York governor Andrew Cuomo last week said that school districts can open New York City schools. The U.S. education system has been one of the biggest casualties of the pandemic, with both teachers and students hesitant to go to school. However, students and teachers over the past few months have well adapted to remote learning.
Online Education to Gain Traction
Schools across the world have started imparting classes online given that there are no immediate signs of coronavirus subsiding. In fact, countries that are reopening economies are witnessing a spike in fresh COVID-19 cases.
A report from UNESCO says more than 1 billion students globally have been prevented from attending schools, colleges and universities. However, they are learning through various video lectures, online seminars, animations and reading materials. Students have even opted for online tests. This is where online education can be a game changer.
The online segment presently comprises a small fraction of the $2.2 trillion global higher education market — less than 2%, according to market intelligence firm HolonIQ — but the appetite from students for online offerings is likely to grow because of the coronavirus disruption. According to market research firm Technavio, the online education market is poised to witness a CAGR of more than 18% from 2020-2024 to reach $247.46 billion.
Stocks in Focus
With the timeline for a coronavirus vaccine still uncertain, it is likely that parents, students and teachers will prefer the shift to online education. Given this scenario, it would be prudent to keep a close watch on four online education providers that are poised to grow.
Career Education Corp. offers bachelor’s, associate and non-degree programs in information technologies, visual communication and design technologies.
The company’s expected earnings growth rate for the current year is 11%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 30 days. Career Education has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chegg Inc. offers Chegg Services, comprising digital products and services such as Chegg Study, Chegg Writing and Chegg Tutors. These allow students to find human help on its learning platform through a network of live tutors.
The company’s expected earnings growth rate for the current year is 39.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the past 30 days. Chegg carries a Zacks Rank #3 (Hold).
GP Strategies Corp. is a global provider of training and e-learning solutions, management consulting, and engineering services, improving the effectiveness of organizations by customizing solutions that enhance an organization's people, processes and technology.
The company’s expected earnings growth rate for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 15.8% over the past 60 days. GP Strategies has a Zacks Rank #2.
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.
The company’s expected earnings growth rate for next year is more than 12.8%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 60 days. Grand Canyon Education carries a Zacks Rank #3.
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Grand Canyon Education, Inc. (LOPE): Free Stock Analysis Report
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Career Education Corporation (PRDO): Free Stock Analysis Report
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