Is Stride Making a Long-Term Bet on Career-Driven High Schools? – June 18, 2025

From Zacks Investment Research: 2025-06-18 09:46:00

Stride, Inc. (LRN) reports a 23.7% rise in Career Learning revenues to $697.1M in fiscal 2025 YTD. Middle-High School sub-segment revenues grew by 31.4%, with enrollment up 32% year over year. Stride shares surged 38.9% year to date due to the rising demand for career programs. LRN focuses on expanding career learning and adult certification programs with a strategic approach, offering competitive advantages in industries like IT, healthcare, and business. The Career Learning segment contributed 39.8% to total revenues in fiscal 2025, showing a positive growth outlook. Other firms like Adtalem Global Education Inc. (ATGE) and Strategic Education, Inc. (STRA) benefit from the strong market fundamentals with increased demand for career professionals in various industries. Adtalem saw growth trends in healthcare education, while Strategic Education offers post-secondary education and other academic programs. LRN stock has surged 38.9% YTD, trading at a premium with a forward P/E ratio of 18.68X, signaling strong market potential. Earnings estimates for fiscal 2025 and 2026 have trended upward by 6.3% and 6.2% respectively, indicating a positive growth trend. LRN stock holds a Zacks Rank #1 (Strong Buy).



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