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Strength Seen in Adtalem (ATGE): Can Its 8.7% Jump Turn into More Strength?

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Adtalem Global Education (ATGE) shares rallied 8.7% in the last trading session to close at $36.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% gain over the past four weeks.

ATGE's share price has been gaining from its strong stock buyback activity and  focus on operational efficiency.

This for-profit education company is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +82.9%. Revenues are expected to be $347 million, up 23.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Adtalem, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ATGE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Adtalem is part of the Zacks Schools industry. Laureate Education (LAUR), another stock in the same industry, closed the last trading session 3.7% higher at $11.35. LAUR has returned -15.9% in the past month.

For Laureate Education , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.42. This represents a change of +321.1% from what the company reported a year ago. Laureate Education currently has a Zacks Rank of #3 (Hold).


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Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
 
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