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Chegg (CHGG) & College Pulse Unveil Interactive Polling Tool

Zacks Equity Research

Chegg, Inc. CHGG and College Pulse — an online survey and analytics company — have unveiled an interactive political poll tracker, Chegg/College Pulse Student Election. The weekly tracker will survey more than 1,500 students in the United States, collecting their views on candidates and leading issues in the 2020 election.

The company believes that students’ vote and their views regarding vital issues like student debt should be heard by leaders as well as candidates. The distinctive approach of College Pulse allows Chegg to meet students’ standards by answering their questions freely and honestly.

Notably, this new technology will help nation's politicians, academicians, and businessmen to gain reliable and real-time insights into the ever-changing attitudes of today's youngsters.

The rising popularity of online and on-demand human help for different courses at high school and college levels bodes well. Chegg’s revenues are generated from two streams — Chegg Services and Required Materials. Strategic investments in Chegg Services are likely to help the company drive growth.

It conjugates with leading service providers that offer students with discounts, promotions and various useful products. Also, the company keeps on investing in different businesses to strengthen existing services, and add new features, functionality as well as content.

In first-quarter 2019, its top line increased 27% year over year on 34% revenue growth from Chegg Services (accounting for 77% of total net revenues). Notably, the company expects second-quarter 2019 revenues in the range of $91-$93 million, significantly up from $70 million reported in the comparable year-ago period. Also, for 2019, the said metric is projected within $393-$398 million compared with $321.1 million registered in 2018.

A glimpse of Chegg’s price performance reveals that it has outperformed the industry in a year’s time. The stock has gained 53.5% compared with its industry’s 36.3% growth in the said period. Earnings estimates for the current year have moved 1.6% upward over the past 60 days, reflecting analysts’ optimism surrounding the stock. The company’s performance was mainly driven by a solid surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing six quarters.

Zacks Rank & Other Key Picks

Currently, Chegg carries a Zacks Rank #2 (Buy). Other top-ranked stocks from the same industry include Alteryx, Inc. AYX, HubSpot, Inc. HUBS and Pareteum Corporation TEUM, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alteryx and HubSpot’s three-five year earnings growth rate is projected at 13.7% and 47.8%, respectively.

Pareteum surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 160.4%.

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