U.S. Markets closed

These 6 School Stocks Are Worth Considering

Sejuti Banerjea

The neat thing about investing is that there are so many industries, situations and sentiments to pick from that in any given situation, there are things you can do to increase your capital. Finding the right stocks is the key to the situation.

Today, I like school stocks, and why do I like them? Well because everyone is so concerned escalating trade tensions with China that they feel insecure about the future. And when you feel insecure, you try to upgrade or add to your skills. And guess who makes money from that.

So how bad is it?

The Conference Board’s consumer confidence index declined to 121.5 in June, a 21-month low. That’s also way below the 131.1 that analysts polled by Reuters were looking for and the 131.3 posted in May.

Senior director Lynn Franco said that “Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”

From the release: “Consumers' appraisal of current-day conditions declined in June. Those claiming business conditions are 'good' decreased from 38.4 percent to 36.7 percent, however, those saying business conditions are 'bad' also decreased, from 11.7 percent to 10.9 percent. Consumers' assessment of the labor market was also somewhat less upbeat. Those saying jobs are 'plentiful' decreased from 45.3 percent to 44.0 percent, while those claiming jobs are 'hard to get' rose from 11.8 percent to 16.4 percent.”

So there you have it. People are getting more concerned about how far their current qualifications will get them. This seems like quite the time to get into schools, so here are a few with attractive Zacks ranks-

Strategic Education Inc. STRA

Headquartered in Herndon, Virginia, Strategic Education offers working adults undergraduate and graduate degree programs in business and public administration, accounting and information technology.

Financial considerations-

Zacks Rank #1

Growth Score A

Revenue and earnings are expected to increase a respective 55.68% and 36.21% in 2019

Average 4-quarter earnings surprise is 12.24%

The 2019 EPS is up 43 cents (7.1%) in the last 60 days

YogaWorks, Inc. YOGA

Based in Culver City, YogaWorks as the name indicates, operates in the fast growing yoga instruction space. It offers yoga classes, integrated fitness classes, workshops, teacher training programs and yoga-related retail merchandise through its Yoga Works and Yoga Tree studios. The company operates primarily in Los Angeles, Orange County, New York City, Northern California, Boston and Baltimore/Washington D.C.

Zacks Rank #1

Momentum Score B

The earnings surprise trend is improving (+8.00% and +10.53% in the last two quarters)

Loss per share is expected to go down significantly from 88 cents last year to 73 cents in 2019 as revenue remains more or less steady.

Bright Horizons Family Solutions Inc. BFAM

Bright Horizons Family Solutions is also likely to benefit from the trend as it takes care of your kids while you work longer hours. Based in Watertown, Massachusetts, the company manages child care centers for corporations, hospitals, universities and government agencies. It focuses on employer-sponsored child care, early education (infant/toddler/preschool care and education, kindergarten, school-age), summer camps, full and part-time child care, and backup care. The company operates primarily in North America, Europe and India.

Zacks Rank #2

Growh Score B

Revenue and earnings expected to grow 8.57% and 12.77%, respectively in 2019

The last four quarters’ average earnings surprise is 3.01%

 

Career Education Corporation CECO

Career Education Co. operates through the American InterContinental UniversityR (AIU) and Colorado Technical UniversityR (CTU). It provides degrees, masters and doctoral levels of education in a career-focused environment. It also has the intellipathTM adaptive learning platform that allows students to collect course credit for knowledge they can demonstrate.

Zacks Rank #2

Growth Score A

Revenue and earnings expected to be up a respective 3.48% and 11.43% in 2019

The average 4-quarter EPS surprise is 2.83%

The 2019 EPS estimate is up 2 cents to $1.17 in the last 60 days

 

Grand Canyon Education, Inc. LOPE

Grand Canyon Education, Inc. is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business and healthcare. In addition to its online programs, it offers programs at its traditional campus in Phoenix, Arizona and onsite at the facilities of employers.

Zacks Rank #2

Revenue and earnings expected to be up a respective -8.16% and 11.11% in 2019

The average 4-quarter EPS surprise is 8.76%

The 2019 EPS estimate is up 12 cents (2.34%)

Lincoln Educational Services Corporation LINC

Lincoln Educational is a leading and diversified for-profit provider of a career-oriented post-secondary education headquartered in West Orange, New Jersey. It offers recent high school graduates and working adults degree and diploma programs in four principal areas of study: automotive technology, allied health (which includes programs for medical administrative assistants, medical assistants, pharmacy technicians and massage therapists), skilled trades and business and information technology.

Zacks Rank #2

Momentum Score A

Revenue and earnings expected to be up a respective 2.82% and 148.15% in 2019

2019 EPS remains unchanged

 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Career Education Corporation (CECO) : Free Stock Analysis Report
 
Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report
 
Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report
 
Lincoln Educational Services Corporation (LINC) : Free Stock Analysis Report
 
Strategic Education Inc. (STRA) : Free Stock Analysis Report
 
YogaWorks, Inc. (YOGA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research