What Makes Scholastic (SCHL) an Undervalued Stock?

From Yahoo Finance: 2025-05-22 07:53:00

First Pacific Advisors released its Q1 2025 investor letter, reporting a -2.51% return for the FPA Queens Road Small Cap Value Fund compared to -7.74% for the Russell 2000 Value Index. President Trump’s tariffs on April 2nd caused market volatility. Check the fund’s top 5 holdings for 2025 picks.

Scholastic Corporation (NASDAQ:SCHL) was highlighted in FPA Queens Road Small Cap Value Fund’s Q1 2025 investor letter, with a one-month return of 0.69%. On May 21, 2025, SCHL stock closed at $17.44 per share. The company has faced volatility but owns prime NYC real estate worth $300 – $400 million.

FPA Queens Road Small Cap Value Fund’s Q1 2025 investor letter discussed Scholastic Corporation (NASDAQ:SCHL) as an educational publishing company with potential. The fund has cautiously added to its position in SCHL over 15 years despite volatile earnings. CEO changes and poor performance have impacted the stock’s value.

Scholastic Corporation (NASDAQ:SCHL) revenue grew 4% in Q3 of fiscal 2025, with 14 hedge fund portfolios holding the stock. While SCHL shows promise, hedge funds focus on AI stocks for higher returns. Check out the report on an undervalued AI stock set for massive gains if seeking high returns in a shorter timeframe.

Read more: What Makes Scholastic (SCHL) an Undervalued Stock?