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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Sometimes it takes a little while to hit your stride. It takes a baby about a year to even have a stride. Then they go to school and learn how to read and add and subtract. However, once COVID hit, people realized that you can go to school and not even leave your house. It’s a trend that won’t go into reverse. There is a company called Stride, Inc. Stride's mission is to help learners of all ages reach their full potential through inspired teaching and personalized learning. They do this by providing clear pathways for learners to expand their skills, explore their options, and change their lives. Stride is leading great change in education. They see learning as a lifelong journey, not one that ends after graduation. And they continue to challenge long-accepted beliefs and practices — harnessing insights from K–12 and adult learners, parents, educators, boards of education, policymakers, and the enterprises that need talented team members. That’s why I bought stock in Stride, Inc. (LRN) today at 69.89. I will sell it in 4 to 6 weeks at 80.73 Here’s why I love LRN.
Look at this amazing chart. This stock is up 85% in the last 52 weeks and its PE is only 16. What a great deal.
Stride, Inc., a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. Over 20 years ago, Stride was founded to provide personalized learning — powered by technology. They reached students where they were in their own journeys. They knocked down their barriers to great education. Stride innovated the learning experience with online and blended learning that prepared them for their lives ahead.
The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. In essence, they have come up with dozens of different ways to replace the archaic chalkboard and eraser methods of teaching, and they make MONEY doing it!
Stride, Inc. has achieved consistent double-digit growth in online education the last 15 years, that is amazing. You ain’t seen nothing yet. The company anticipates doubling the number of students it serves. Stride provides an all-encompassing package comprising curriculum, resources, administrative services, and a robust software infrastructure. Many polls on education have revealed more and more parental consideration about school satisfaction, and a substantial percentage exploring online alternatives. Homeschooling is growing at nearly a 10% clip per year.
The future of education will be unrecognizable through the lens we observe it in today. Stride is poised to capture all of this change. Strategic acquisitions, (Medcerts, Tech Elevator and Galvanize) have positioned Stride to tap into the adult learning sector, aligning with the demands of a robust labor market. The U.S. Bureau of Labor's projection of higher growth rates for expertise requiring non-degree education aligns seamlessly with Stride's specialized offerings, underscoring its adaptability to evolving market demands. Stride’s stock price can potentially double or triple in the next several years with the adoption of online education becoming more mainstream and accepted.
Stride, Inc. was named the winner of six prestigious Stevie ® awards for excellence in the 22nd annual American Business Awards ®. Stride received Gold Stevie awards for their virtual conference Promising Practices, the Stride Professional Development Center, Stride's Innovative and Accessible Virtual Labs, and Stride's Minecraft Education Worlds. Through their K12-powered schools, Stride provides individualized education experiences and cutting-edge online K12 curriculum built on over 20 years of research. K12 offers online public and private school, homeschooling materials, 1:1 tutoring, and more. Students at K12-powered schools benefit from award-winning curricula, state-certified teachers, hands-on activities, and immersive experiences. The company has transformed millions of people's teaching and learning experiences by providing innovative, high-quality, tech-enabled education solutions, curriculum, and programs directly to students, schools, the military, and enterprises in primary, secondary, and postsecondary settings. For adult learners, Stride delivers professional skills training in healthcare and technology, as well as staffing and talent development for Fortune 500 companies. Stride has delivered millions of courses over the past decade and serves learners in all 50 states and more than 100 countries.
Enough of the feel good story…how does translate to earnings and an increase in the LRN stock price? ANAL-ysts are loving it. It just had its price target increased by Citi from $75.00 to $77.00, with the firm maintaining a Buy rating on the stock. This adjustment comes after Stride's third-quarter results for fiscal year 2024 and an upward revision of its full-year guidance. Citi's decision to raise the price target is a reflection of the updated financial model, which takes into account Stride's recent performance and outlook for the fiscal year. The improved forecast for Stride's Adjusted Operating Income, which is expected to grow by approximately 4.1% for the fiscal year 2024, has also influenced Citi's outlook. Of course, this is an example of underpromise and overdeliver as LRN will certainly skyrocket past this Citi ANAL-yst’s sandbag target.
Stride’s robust financial position, with a market capitalization of $3.1 billion and a P/E ratio sitting attractively at around 16, suggests that the stock is trading at a low price relative to near-term earnings growth. The company's revenue growth remains strong – 48% year-over-year and earnings growth year on year of 114%! Amazing for a company of this size and scale. Return on assets are 8% and return on equity is 18%.
Rock solid!
The most recent quarter sheds an optimistic light on this company: Stride had a terrific fiscal third quarter of 2024, with notable gains in enrollment generating profits. As a result, the company raised its full fiscal year guidance for revenue and operating income. Stride has grown EPS by 38% per year, over the last three years. That’s stellar and consistent, especially at the low PE valuation.
Third Quarter Fiscal 2024 Highlights Compared to 2023
Here’s what the head honcho of LRN had to say:
“We remain committed to incorporating AI and other technologies into our programs, but we will do so by putting the right tools into the hands of teachers and students to supplement their work and empower all parties. Now we just finished another incredible quarter. We reported record quarterly revenue and our enrollment hit a new all-time high of 198,4000 students, sequentially higher than last quarter and higher than the pandemic levels of fiscal year '21.
Our in-year enrollment growth now for 2 years running indicates that the landscape of education of choice is expanding and more fluid and that the fall is just one indicator of customer sentiment. Many of you are already wondering about the upcoming fall season, while we are focused on delivering for our customers this year and ending the year strong.
If the trends we are seeing in enrollment during this year continue, we've set ourselves up for a strong fall season. Application volumes as a proxy for demand continue to trend strongly and conversion rate indicators are positive. As of today, we have the largest cohort of reregistering students in Stride's history. There's still a lot of work to be done before next school year, but we feel we are well positioned to continue to grow enrollment. Given the landscape of education today, I believe Stride represents one of the many emerging trends on the future of education by delivering on tomorrow's education today that is accessible technology-driven, flexible, career-focused and proven.”
Even the kid in the corner wearing the dunce cap is smart enough to see a no brainer stock pick…a company with great growth prospects at a very reasonable price. I think LRN should get an A+ and doesn’t even need to bring an apple to the teacher. It’s all in and I’m taking LRN to the pay window! I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Sometimes it takes a little while to hit your stride. It takes a baby about a year to even have a stride. Then they go to school and learn how to read and add and subtract. However, once COVID hit, people realized that you can go to school and not even leave your house. It’s a trend that won’t go into reverse. There is a company called Stride, Inc. Stride's mission is to help learners of all ages reach their full potential through inspired teaching and personalized learning. They do this by providing clear pathways for learners to expand their skills, explore their options, and change their lives. Stride is leading great change in education. They see learning as a lifelong journey, not one that ends after graduation. And they continue to challenge long-accepted beliefs and practices — harnessing insights from K–12 and adult learners, parents, educators, boards of education, policymakers, and the enterprises that need talented team members. That’s why I bought stock in Stride, Inc. (LRN) today at 69.89. I will sell it in 4 to 6 weeks at 80.73 Here’s why I love LRN.
Look at this amazing chart. This stock is up 85% in the last 52 weeks and its PE is only 16. What a great deal.
Stride, Inc., a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. Over 20 years ago, Stride was founded to provide personalized learning — powered by technology. They reached students where they were in their own journeys. They knocked down their barriers to great education. Stride innovated the learning experience with online and blended learning that prepared them for their lives ahead.
The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. In essence, they have come up with dozens of different ways to replace the archaic chalkboard and eraser methods of teaching, and they make MONEY doing it!
Stride, Inc. has achieved consistent double-digit growth in online education the last 15 years, that is amazing. You ain’t seen nothing yet. The company anticipates doubling the number of students it serves. Stride provides an all-encompassing package comprising curriculum, resources, administrative services, and a robust software infrastructure. Many polls on education have revealed more and more parental consideration about school satisfaction, and a substantial percentage exploring online alternatives. Homeschooling is growing at nearly a 10% clip per year.
The future of education will be unrecognizable through the lens we observe it in today. Stride is poised to capture all of this change. Strategic acquisitions, (Medcerts, Tech Elevator and Galvanize) have positioned Stride to tap into the adult learning sector, aligning with the demands of a robust labor market. The U.S. Bureau of Labor's projection of higher growth rates for expertise requiring non-degree education aligns seamlessly with Stride's specialized offerings, underscoring its adaptability to evolving market demands. Stride’s stock price can potentially double or triple in the next several years with the adoption of online education becoming more mainstream and accepted.
Stride, Inc. was named the winner of six prestigious Stevie ® awards for excellence in the 22nd annual American Business Awards ®. Stride received Gold Stevie awards for their virtual conference Promising Practices, the Stride Professional Development Center, Stride's Innovative and Accessible Virtual Labs, and Stride's Minecraft Education Worlds. Through their K12-powered schools, Stride provides individualized education experiences and cutting-edge online K12 curriculum built on over 20 years of research. K12 offers online public and private school, homeschooling materials, 1:1 tutoring, and more. Students at K12-powered schools benefit from award-winning curricula, state-certified teachers, hands-on activities, and immersive experiences. The company has transformed millions of people's teaching and learning experiences by providing innovative, high-quality, tech-enabled education solutions, curriculum, and programs directly to students, schools, the military, and enterprises in primary, secondary, and postsecondary settings. For adult learners, Stride delivers professional skills training in healthcare and technology, as well as staffing and talent development for Fortune 500 companies. Stride has delivered millions of courses over the past decade and serves learners in all 50 states and more than 100 countries.
Enough of the feel good story…how does translate to earnings and an increase in the LRN stock price? ANAL-ysts are loving it. It just had its price target increased by Citi from $75.00 to $77.00, with the firm maintaining a Buy rating on the stock. This adjustment comes after Stride's third-quarter results for fiscal year 2024 and an upward revision of its full-year guidance. Citi's decision to raise the price target is a reflection of the updated financial model, which takes into account Stride's recent performance and outlook for the fiscal year. The improved forecast for Stride's Adjusted Operating Income, which is expected to grow by approximately 4.1% for the fiscal year 2024, has also influenced Citi's outlook. Of course, this is an example of underpromise and overdeliver as LRN will certainly skyrocket past this Citi ANAL-yst’s sandbag target.
Stride’s robust financial position, with a market capitalization of $3.1 billion and a P/E ratio sitting attractively at around 16, suggests that the stock is trading at a low price relative to near-term earnings growth. The company's revenue growth remains strong – 48% year-over-year and earnings growth year on year of 114%! Amazing for a company of this size and scale. Return on assets are 8% and return on equity is 18%.
Rock solid!
The most recent quarter sheds an optimistic light on this company: Stride had a terrific fiscal third quarter of 2024, with notable gains in enrollment generating profits. As a result, the company raised its full fiscal year guidance for revenue and operating income. Stride has grown EPS by 38% per year, over the last three years. That’s stellar and consistent, especially at the low PE valuation.
Third Quarter Fiscal 2024 Highlights Compared to 2023
- Revenue of $520.8 million, compared with $470.3 million, driven by continued strong enrollment trends.
- Income from operations of $88.3 million, compared with $72.2 million.
- Net income of $69.7 million, compared with $55.5 million.
- Diluted net income per share of $1.60 compared with $1.30.
- Adjusted operating income of $96.4 million, compared with $80.2 million.
- Adjusted EBITDA of $120.5 million, compared with $103.9 million.
- Accelerating secular shift toward virtual education and school choice
Here’s what the head honcho of LRN had to say:
“We remain committed to incorporating AI and other technologies into our programs, but we will do so by putting the right tools into the hands of teachers and students to supplement their work and empower all parties. Now we just finished another incredible quarter. We reported record quarterly revenue and our enrollment hit a new all-time high of 198,4000 students, sequentially higher than last quarter and higher than the pandemic levels of fiscal year '21.
Our in-year enrollment growth now for 2 years running indicates that the landscape of education of choice is expanding and more fluid and that the fall is just one indicator of customer sentiment. Many of you are already wondering about the upcoming fall season, while we are focused on delivering for our customers this year and ending the year strong.
If the trends we are seeing in enrollment during this year continue, we've set ourselves up for a strong fall season. Application volumes as a proxy for demand continue to trend strongly and conversion rate indicators are positive. As of today, we have the largest cohort of reregistering students in Stride's history. There's still a lot of work to be done before next school year, but we feel we are well positioned to continue to grow enrollment. Given the landscape of education today, I believe Stride represents one of the many emerging trends on the future of education by delivering on tomorrow's education today that is accessible technology-driven, flexible, career-focused and proven.”
Even the kid in the corner wearing the dunce cap is smart enough to see a no brainer stock pick…a company with great growth prospects at a very reasonable price. I think LRN should get an A+ and doesn’t even need to bring an apple to the teacher. It’s all in and I’m taking LRN to the pay window! I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
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