Education pays off, both for students and providers. Shares of No. 1 ranked education stock Stride hit a record high at the end of August. It's on the rise again. Profits have been growing like a weed and it owns a best-possible 99 EPS Rating.
On Thursday, Stride stock raced past an important technical milestone, with its Relative Strength (RS) Rating jumping into the 80-plus percentile with an improvement to 83, up from 80 the day before. It's slated to report earnings around Oct. 28.
Over 100 years of market history shows that the market's biggest winners tend to have an RS Rating of over 80 in the early stages of their moves. Stride is in that top-performers group now.
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Stride In Top 6% Of Stocks Overall
Among its other key ratings Stride has a 94 Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better. The 94 rating shows that Stride is in the top 6% of stocks overall. Its SMR Rating (sales + profit margins + return on equity) of A is top-notch.
Stride has a C- Accumulation/Distribution Rating, showing that institutional investors like ETFs and insurance company funds are selling slightly more of its shares than buying. Look for that to improve to a C or better rating.
Stride stock shot up from a 63.25 low a year ago, in late October 2024, to an all-time high 171.17 on Aug. 27 this year. It consolidated from there, sliding to 135.51 on Sept. 15, and turned upward again. The educator stock traded above 145 Thursday afternoon, up for the day.
While for The IBD Methodology investors it's not currently an ideal time to buy shares, see if the stock goes on to form a fresh chart pattern and break out.
Double-Digit Sales, Profit Growth
Stride's earnings rose 36% to $2.29 per share last quarter on a 22% rise in revenue to $653.7 million. It's reported double-digit sales and profit growth the last five quarters in a row. Look for the next report on or around Oct. 28. Analyst consensus is for EPS to rise 14% on an 11% hike in revenue, according to FactSet.
Stride holds the No. 1 rank among its peers in the Consumer Services-Education industry group, according to IBD Digital research. Adtalem Global Education and Universal Tech Institute are also among the group's highest-rated stocks.
IBD's proprietary rating measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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