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Online Learning Company Gains Traction as Universities Jump Aboard

Online learning initiatives have surged over the past few decades. A revolutionary approach to education, the new era of e-learning has ushered in countless entities and organizations seeking to get ahead in the space. The onset of artificial intelligence has led to rapid advances and new methods of extracting information.

We can trace e-learning back to the internet explosion of the mid ‘90s. Lynda Weinman originally founded Lynda.com back in 1995, which then became LinkedIn Learning following LinkedIn’s acquisition in 2015. The American online learning platform is now owned by Microsoft after the tech giant purchased LinkedIn in 2016. Other tech companies such as Google-parent Alphabet have joined the cause; the company offers Google Career Certificates for in-demand job skills in growing fields such as information technology and data analytics.

Non-profit educational organization Khan Academy, founded by Sal Khan in 2006, is another leader in online learning. Its website and YouTube channel host over 8,000 video lessons teaching a wide spectrum of academic subjects such as mathematics, sciences, history, and literature. Khan Academy also provides online courses for standardized tests such as the SAT, Praxis Core, MCAT and LSAT. In 2017, Khan Academy became the official practice partner for the College Board’s Advanced Placement.

Online Course Provider Soars to 52-Week High

Online learning company Coursera COUR has been one of 2023’s biggest winners. The Mountain View, California-based company works with organizations to offer online courses, certifications, and degrees in a variety of subjects. Coursera collaborates with more than 300 universities and colleges such as Stanford, Duke, and Michigan, as well as major companies including IBM and Alphabet.

COUR stock went public in 2021; it’s been a rocky road for investors since the IPO, but shares appear to have turned the corner. COUR stock entered an uptrend has advanced nearly 77% year-to-date:

StockCharts
StockCharts


Image Source: StockCharts

The learning platform is part of the Zacks Technology Services industry group, which currently ranks in the top 35% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.

Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.

Coursera has surpassed earnings estimates in each of the past four quarters. The e-learning provider most recently posted a third-quarter loss of -$0.02/share back in October, a 71.43% surprise over the -$0.07/share consensus estimate. The company has delivered a trailing four-quarter average earnings surprise of 75.44%.

Coursera is expected to turn a profit next year. Current estimates call for 2024 earnings of $0.04/share, which would mark a 176.7% improvement relative to this year. Revenues are projected to climb 14.4% to $721.2 million.

Make sure to keep tabs on the e-learning space, particularly given this year’s artificial intelligence explosion. The way we learn is changing before our eyes.

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