Last Updated: 19 Sep 2024
Executive Summary
Stride Inc. (LRN) is a leading provider of online educational services, software systems, and curricula. The company has a strong financial profile with a market capitalization of $3.55 billion, EBITDA of $295.3 million, and EPS of $4.69. Stride Inc. has a favorable valuation compared to its peers, trading at a P/E ratio of 17.47 and a PEG ratio of 0.749. The company's revenue and earnings have grown steadily in recent quarters, and analysts are optimistic about its future prospects.
Company Overview
Stride Inc. was founded in 2009 and is headquartered in Herndon, Virginia. The company provides online educational services to students in kindergarten through grade 12 (K-12) in the United States and internationally. Stride Inc.'s offerings include online courses, software systems, and curricula that are designed to facilitate individualized learning. The company has a network of over 500 schools and serves over 120,000 students.
Fundamental Analysis
Stride Inc.'s financial performance has been strong in recent years. The company's revenue has grown from $1.7 billion in 2020 to $2.04 billion in 2023. Net income has also increased from $160.7 million in 2020 to $295.3 million in 2023. Stride Inc.'s profit margin is 10%, and its operating margin is 5.38%. The company's return on assets is 8.48%, and its return on equity is 19.2%.
Technical Analysis
Stride Inc.'s stock price has been trading in a range between $43.77 and $84.2 over the past 52 weeks. The stock is currently trading at $81.92, which is above its 50-day moving average of $77.22 and its 200-day moving average of $66.78. The relative strength index (RSI) is 62.5, which indicates that the stock is overbought.
Short Term Outlook
Stride Inc.'s stock price is likely to continue to trade in a range in the short term. The company's financial performance is strong, but the stock is overbought. Investors should wait for a pullback before buying the stock.
Long Term Outlook
Stride Inc. is a well-positioned company in the growing online education market. The company has a strong financial profile and a track record of innovation. Investors who are looking for a long-term investment should consider buying Stride Inc. stock.
Analyst Recommendations
Analysts are bullish on Stride Inc. stock. The consensus analyst rating is "Buy." The average analyst target price is $86, which represents a potential upside of 5%.
