Online education stock Adtalem Global Education is nearing the buy point of a base. The company recently reported its fiscal fourth-quarter and 2025 earnings and gave a fiscal 2026 outlook.
The IBD 50 Growth Stocks To Watch pick is a leading name in the online education industry. The stock holds an IBD SMR Rating of "A," meaning it is in the top 20% of names in terms of sales growth, profit margins, and return on equity, or ROE.
Adtalem Global Education operates five postsecondary education institutions: American University of the Caribbean School of Medicine, Chamberlain University, Ross University School of Medicine, Ross University School of Veterinary Medicine and Walden University.
Four of Adtalem's schools specialize in programs for medical, nursing, and veterinary, while Walden University offers more than 100 online degree and certificate programs.
Adtalem's institutions offer bachelor's, master's, doctoral, and certificate programs.
The IBD 50 stock ranks No. 3 out of 41 stocks in the Consumer Services-Education group, which holds the 92nd spot out of the 197 industry groups that Investor's Business Daily tracks.
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Online Education Stock Nears An Entry
The online education stock has been rising since the company's fiscal fourth-quarter earnings report on Aug. 7. Shares reached the 130.40 buy point of a double-bottom base on Aug. 13, but the breakout faded and closed below the entry.
Adtalem stock is hovering just below the buy point, according to MarketSurge chart analysis. Shares are holding above their 50-day moving average and 21-day exponential moving averages.
The stock has performed strongly, as seen in its IBD Relative Strength Rating of 88 and its year-to-date gain of 40%.
Its IBD Accumulation/Distribution Rating of C+ indicates more institutional buying than selling over the last 13 weeks. Mutual funds have added the online education stock for five straight quarters, according to IBD Stock Checkup.
Adtalem Leader Describes 'Defining Moment'
Adtalem easily topped fiscal fourth-quarter profit and revenue estimates. Its earnings growth slowed to 21% from 47% and 28% in the prior two quarters.
Its sales grew 11.5%, which was in-line with its 12% average over the last six quarters. Meanwhile, its total enrollment rose 10.2% in the fiscal fourth quarter vs. the prior year.
"Fiscal 2025 marked a defining moment for Adtalem — an inflection point that demonstrated the strength and scaled ability of our Growth with Purpose strategy," Adtalem Global Education Chief Executive Steve Beard said in the earnings release. Adtalem has been "graduating more health care professionals into roles where they're urgently needed," and the company is well-positioned to deliver long-term value for its students, shareholders, and the U.S. health care system, Beard said.
The company's fiscal 2025 revenue came in $1.79 billion, an increase of 12.9% year-over-year.
Its Chamberlain school reported record total enrollment of more than 40,500 nursing students in fiscal 2025. Walden's enrollment topped more than 48,500. Meanwhile, Adtalem reported around an average of 5,000 medical and veterinary students in its other institutions.
The company also gave a fiscal 2026 revenue guidance range of $1.900 billion to $1.940 billion, or 6% to 8.5% growth year-over-year. And Adtalem expects adjusted earnings per share in the range of $7.60 to $7.90, or a 14% to 18.5% increase vs. fiscal 2025.
Analysts see fiscal 2026 profit of $7.79 per share, then earnings of $8.79 per share in fiscal 2027. The company has been a steady profit grower as seen in its Earnings Stability factor of 15 out of 99 possible – with a lower number being better.
Lastly, it holds a robust 97 Earnings Per Share Rating and a 92 IBD Composite Rating.
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