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Scholastic (SCHL) Flat As Market Sinks: What You Should Know

Zacks Equity Research

Scholastic (SCHL) closed at $37.75 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the publishing, education and media company had lost 0.71% in the past month. In that same time, the Consumer Staples sector gained 3.07%, while the S&P 500 gained 1.62%.

Investors will be hoping for strength from SCHL as it approaches its next earnings release. In that report, analysts expect SCHL to post earnings of $1.77 per share. This would mark a year-over-year decline of 15.31%. Meanwhile, our latest consensus estimate is calling for revenue of $591.20 million, down 2.23% from the prior-year quarter.

SCHL's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $1.69 billion. These results would represent year-over-year changes of +2.78% and +2.22%, respectively.

Any recent changes to analyst estimates for SCHL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SCHL is currently a Zacks Rank #3 (Hold).

Digging into valuation, SCHL currently has a Forward P/E ratio of 34.01. Its industry sports an average Forward P/E of 23.67, so we one might conclude that SCHL is trading at a premium comparatively.

The Publishing - Books industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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