Online education was one of the industries that benefited most from the pandemic. Government restrictions and security concerns changed the classroom-to-home learning experience for millions of students and workers around the world.
Since schools and offices have reopened, our reliance on remote learning solutions has diminished. In turn, many education stocks that earned A for performance in 2020 and 2021 have failed to attract investors to the post-pandemic economy.
It’s time to go back to school.
Without the unusual demand created by the pandemic, the online learning space can not only survive but thrive in the years to come. Global Market Insights predicts that the global e-learning market will grow at a rate of 20% from 2022 to 2028. Increased access to the Internet and computers is expected to allow more people to use learning platforms electronic to obtain degrees and complete corporate training modules. .
However, with so many companies competing to reach the top of the class, choosing winning education stocks is a puzzle. When it comes to good long-term growth prospects, these three names make the note.
What is an undervalued education value?
Universal Technical Institute, Inc. (NYSE: UTI) specializes in post-secondary education for students interested in a career as an automotive or nautical technician. It offers face-to-face and virtual programs on 14 American campuses under various brands, the most recognized being the NASCAR Technical Institute.
It is a company that has stood the test of time because it has been a leader in technical education for over five decades. Not only has it survived the ups and downs of the economic cycle, but it has grown in the process.
More recently, the growth strategy has been the acquisition of other technical schools to diversify their offer of certificates and degrees, as well as their geographical footprint. UTI’s latest takeover was Michigan-based MIAT College of Technology, which offers real-world training in a variety of mechanical trades such as welding, air conditioning, aviation and robotics, and automation technology.
A tireless search for growth makes UTI stand out among listed educational companies. That’s a big part of why the street is unanimously optimistic about actions. Workers will look for ways to expand their skill set in an increasingly competitive job market. Many will sign up for the UTI program extension.
Will the existence of Attalem Global Education increase?
Adtalem Global Education Inc. (NYSE: ATGE) it is rather a major trade, although it focuses primarily on offering degree programs in the healthcare sector. Chamberlain University, Ross University and the newly acquired Walden University are some of the most popular institutions for people seeking careers in the medical field. As such, healthcare organizations usually rely on Attalem to provide them with talented professionals.
Given the projected growth in areas such as medicine, nursing and veterinary care, demand for Adtalem’s undergraduate and graduate programs is expected to be robust over the next few years. And with more and more people choosing to pursue studies while working part-time or raising families, much of the demand will focus on e-learning. Adtalem is positioning its portfolio in anticipation of this trend.
After acquiring Walden University from Laureate Education, the company has more than 100 certificates and degree programs from which to choose students. The programs are offered on campus, hybrid and online and are considered among the best in their respective fields. This has prepared Adtalem to be one of the world’s leading providers of doctors and nurses.
After surpassing $ 1 billion in revenue last year, Adtalem is expected to achieve sustained growth from the top and bottom line over the next few years. The stock is recovering very well from its 2022 low and, given the 12x economic P / E, it has plenty of room to operate.
Will the stock of strategic education recover?
Actions of Strategic Education, Inc. (NASDAQ: STRA) they have steadily declined since their first pandemic to nearly $ 190. Now listed at around $ 70, the company is an attractive candidate for an acquisition, but it also has the potential to recover.
Strategic Education, or SEI, is the parent company of Strayer University and the New York Code and Design Academy (NYCDA). The first is a private college located in the Washington DC area, whose roots go back to 1892 when it was Strayer’s Business College. Today it offers a wide range of accredited degrees online and on campus. NYCDA is a leading educational destination for people interested in web and software development training.
Recently, student enrollment and financial results have dropped in the SEI. With the job market strong, many recent graduates pursuing a business or computer career have opted to join the workforce and postpone schooling plans. SEI seems to be being affected by this trend more than its peers by the areas in which it specializes.
In turn, management is treating the recession as an opportunity to diversify its offering and innovate. Buried in recent disappointing results, there is a program called FlexPath that allows students to leverage what they learn at work to advance their knowledge bases and career paths. In the first quarter, enrollment in FlexPath became a larger part of U.S. higher education enrollments and is positioning itself to become a key growth engine for the company.
Outside of its main institutions, SEI’s umbrella includes the online cooking school Sur La Table and Hackbright Academy, an engineering school for women that offers talent to companies like Google and Airbnb. It is branching out into equally unique offerings to attract modern students interested in less traditional post-secondary education pathways.
SEI has work to do to recoup investors, but it is going in the right direction. Aside from expanding its product set, stock repurchases and a 3.4% dividend yield are good first lessons.