|Bid||0.00 x 1000|
|Ask||0.00 x 800|
|Day's Range||36.64 - 39.56|
|52 Week Range||19.50 - 41.69|
|Beta (3Y Monthly)||0.81|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 6, 2017 - Nov 10, 2017|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||40.80|
Chegg CEO Dan Rosensweig sits down with CNBC's "Squawk Alley" to discuss the company's strong earnings and overall growth.
SANTA CLARA, Calif., March 22, 2019 /PRNewswire/ -- Chegg, Inc. (CHGG) today announced that it has priced $700.0 million aggregate principal amount of 0.125% convertible senior notes due 2025 (the "notes"). The aggregate principal amount of the offering was increased from the previously announced offering size of $500.0 million. Chegg also granted the initial purchasers of the notes an option to purchase up to an additional $100.0 million aggregate principal amount of notes.
PRESIDENT, CEO & CO-CHAIRMAN of Chegg Inc (NYSE:CHGG) Daniel Rosensweig sold 165,000 shares of CHGG on 03/20/2019 at an average price of $41.08 a share.
SANTA CLARA, Calif., March 20, 2019 /PRNewswire/ -- Chegg, Inc. (CHGG) today announced that it proposes to offer $500.0 million aggregate principal amount of convertible senior notes due 2025 (the "notes"), subject to market conditions and other factors. Chegg also intends to grant to the initial purchasers of the notes an option to purchase up to an additional $75.0 million aggregate principal amount of notes. The notes will be general unsecured, senior obligations of Chegg, and interest will be payable semi-annually.
Chegg is the IBD Stock Of The Day. The textbook and online education provider has triggered a key profit-taking rule thanks to a powerful post-breakout surge.
One of my favorite stocks on Wall Street is digital education platform Chegg (NYSE::CHGG). The bull thesis on Chegg stock is simple. The world is becoming more digital than ever. This includes the education sector. But, there is currently no at-scale, uniform, low-cost provider of digital education services globally for high school and college students.Source: Shutterstock Chegg is providing these services, and it is growing very quickly because demand for these services is robust. But, Chegg is still in the first inning of this growth narrative, and as it plays out over the next several years, Chegg stock will stay on a winning trajectory.That bull thesis missed one big thing, which only reinforces why Chegg stock is a long-term winner: a college bribery scandal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the past several days, both the academic and celebrity worlds have been hit hard by a college bribery scandal that includes some big name Hollywood actors and actresses. Long story short, those big name actors and actresses, alongside 50 other wealthy parents, bribed people in the college admissions process to get their kids into good schools. * 10 Dividend Stock Winners Believe it or not, this news is a big deal for Chegg. Indeed, it should provide a strong catalyst for Chegg's services -- namely its online SAT prep service -- and that will provide a huge near, medium and long-term tailwind for this already supercharged growth narrative.Overall, Chegg stock is a long-term winner, with or without the college bribery scandal. But, the college bribery scandal creates a huge tailwind that should propel the stock toward $50 over the next twelve-plus months. You Can't Pay Your Way Into College AnymoreThe details of the college bribery scandal, which are now just coming to light aren't important. Instead, what is important, is that this is just the tip of the iceberg. People everywhere, one way or another, have been trying to rig the college admissions process for a long time, so much so that it was somewhat becoming true that you could pay your way into college.This trend is breaking. The scandal is an embarrassment for all involved parties. No one wants that kind of publicity. So, going forward, the involved parties will do everything to avoid this publicity. Higher education institutions will tighten up their admissions processes. Standardized test taking processes will likewise be tightened up. Parents will stop trying to shuffle money into these sort of bribery schemes.In other words, the era of being able to pay your way into college is gradually coming to an end.The financial implication of this is that more money than ever will flow into legitimate college admissions processes, such as test prep. Standardized test prep is already a huge industry. Millions of high school students take the SAT and ACT exams every year. Millions of dollars are already spent on preparing those students for those exams.But, with this recent scandal, there will inevitably be a boom in the standardized test prep industry. That's big for Chegg. The company is a streamlined, digital and low-cost provider of SAT prep solutions nationwide, with an exceptionally wide reach and high brand awareness. Naturally, as more dollars flow into the standardized test prep industry over the next several years, a lot of those dollars will find their way into Chegg.As such, the recent college bribery scandal actually provides a big tailwind for CHGG stock. Long-Term Upside Is CompellingIn the big picture, the college bribery scandal is just one of many reasons to like Chegg stock for the long haul. Those reasons are as follows: * Digital is the future, and CHGG is the digital platform in the education space. Thus, the adoption of CHGG's digital education tools will only grow over time. * Chegg only has 3.1 million subscribers, representing less than 10% penetration among America's 36 million high school and college students. Globally, the opportunity is much bigger, with over 200 million college students worldwide. * Chegg is growing it's sub base at a ~40% rate and Service revenues at a 35%-plus rate. Neither growth rate is slowing by much in a multi-year window. * Gross margins are 75%-plus. The revenue model is largely subscription-based. * Opex rates are falling quickly with revenue scale. Adjusted operating margins have climbed from a loss of 14% in 2014, to an increase of more than 20% last year. They are expected to head even higher next year.Overall, Chegg is a big-growth, high-margin company that has a long runway ahead of it through robust subscriber growth. Because of this, I think CHGG projects as a steady 20%-plus revenue and sub grower over the next several years. Gross margins should remain steady around 75% during that stretch. Meanwhile, opex rates should keep falling with scale, implying healthy room for operating margin expansion. * 7 Dividend Stocks With Big Yields Under those assumptions, I see Chegg as being able to do about $2.50 in earnings-per-share by fiscal 2025. At that point in time, the company should still be a big growth company with a huge international opportunity in front of it, and will consequently warrant a big forward growth multiple of 30. Based on the 30X forward multiple, $2.50 in fiscal 2025 EPS should reasonably lead to a fiscal 2024 price target for Chegg stock of $75.Discounted back by 10% per year, that equates to a fiscal 2019 price target of over $45, implying healthy upside over the next several months. Bottom Line on CHGG StockChegg stock is a long-term winner. The recent college bribery scandal only reinforces that long-term bull thesis, and provides a healthy tailwind for operations over the next few quarters. As such, Chegg stock remains a buy at current levels.As of this writing, Luke Lango was long CHGG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post Chegg Stock Is a Screaming Buy Thanks to This New Catalyst appeared first on InvestorPlace.
Sometimes, finding big winners in the stock market is all about finding stocks that others don't know about just yet. Why? Because stock prices are determined by buyers and sellers. If everyone knows about a stock, then everyone is already engaged in the buying and selling processes. Thus, the only thing that can really change the price is the sentiment of those buyers and sellers.But, if you have an underrated stock that isn't known by everyone, the dynamic is very different. Everyone isn't engaged in the buying and selling. Thus, while sentiment changes do change the stock price, another thing that can happen here is you can get an influx of new buyers as more investors become aware of the stock. As such, broader awareness of an underrated, high-quality stock can create a surge in price.Because of this, underrated and high-quality stocks are almost always at the top of my buy list. These are stocks which don't get a lot of mainstream media attention, and consequently are less followed by investors than other mainstream stocks. Nonetheless, these underrated, high-quality stocks are supported by healthy growth fundamentals, and as such, broader awareness often brings in new buyers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Chinese Stocks to Buy for the 2019 Rebound With that in mind, let's take a look at six underrated stocks which are at the top of my buy list for 2019.Source: Shopify via Flickr Shopify (SHOP)At its core, Shopify (NYSE:SHOP) provides omni-channel commerce solutions for retailers of all shapes and sizes. In so doing, the company fits in perfectly into the coordinated economy wheelhouse. Shopify is democratizing supply in the retail world -- allowing anyone to sell anything -- and coordinating that new supply to satisfy demand-side expectations. Net result? Shopify's solutions are pulling prices lower across the retail industry, while elevating consumer convenience.Because of this, Shopify has found a winning formula which will allow it grow by leaps and bounds in the retail world over the next several years. Yet, despite this enormous growth potential, Shopify stock is still hardly talked about in mainstream financial media outlets, nor do many consumers know about the company.As such, Shopify is the quintessential example of a top underrated stock.Source: Shutterstock Chegg (CHGG)Back in the day, Chegg (NYSE:CHGG) was a textbook rental company. That's an unexciting business characterized by low growth and low margins. Then, the company pivoted into digital education, and started providing education services such as textbook solutions, tutoring, and much more through an online platform. Those services were met with huge demand, since students needed an on-demand, digital education solution, and didn't have one until Chegg. Chegg has since improved those solutions and created an unprecedented digital education ecosystem which is still growing by leaps and bounds.The upside potential here is that Chegg only has about 3 million subscribers. At any given point, there are 36 million high school and college students in America, and many, many more globally. As such, Chegg is tapping into a very small portion of its addressable market, implying that big growth is here to stay for a lot longer. * 3 Consumer Finance Stocks to Buy for the Future of Fintech Despite this enormous growth potential, CHGG stock isn't ever talked about in mainstream financial media outlets. Nor is the company that well known outside of high school and college education circles. That will change over time. As it does, CHGG stock will keep on keeping on (over the past five years, CHGG stock has gone from $5 to $40).Source: Shutterstock The Trade Desk (TTD)Programmatic advertising is one of the biggest secular growth narratives in the market. The Trade Desk (NASDAQ:TTD) is the leader in this market, with accelerating momentum. Yet, despite being a leader in a secular growth market with accelerating momentum, TTD stock is almost never mentioned in mainstream financial media, nor is the company that well known.This lack of broad TTD awareness is an opportunity for investors. Programmatic advertising is the future. Before, ads were bought and sold by humans. Now, technology has improved to a point where machines can buy and sell ads. This process is called programmatic advertising, and it's cheaper, quicker, and more efficient than traditional ad transaction methods. The Trade Desk is the best at this programmatic advertising process, and has consistently proven dominance in this market by recording multiple consecutive quarters of 50%-plus revenue growth.Last year, Trade Desk reported gross ad spend of under $2.5 billion. The global advertising market is marching towards $1 trillion. Eventually, all of those ads, from mobile to display to audio to TV, will be transacted programmatically. Thus, Trade Desk has a tremendous opportunity to dramatically grow share in the global advertising market, and in so doing, power robust revenue and profit growth over the next several years.If management successfully executes on that opportunity, TTD stock will continue to be a big winner for a lot longer.Source: Web Summit Via Flickr Twilio (TWLO)Another one of the market's biggest and most powerful secular growth narratives is in the CPaaS market, which is short for Communication Platforms-as-a-Service. The unparalleled leader in this market is Twilio (NASDAQ:TWLO). Yet, much like The Trade Desk, Twilio's mainstream financial media coverage is relatively low considering just how important this company will be one day.Again, this lack of mainstream coverage is an opportunity. CPaaS is a big growth market. It comprises companies integrating real-time mobile communication into their services. Demand for this service is only growing because consumers are increasingly digitally engaged through mobile phones and enterprises are increasingly seeking to personalize communication efforts with those same consumers. Neither of these trends are going to reverse course any time soon. Instead, they will only gain traction. As they do, demand for Twilio's suite of communication services will only grow by a ton.The numbers here imply big growth is here to stay for a lot longer. Revenue growth is consistently north of 50%. Customer growth is consistently north of 30%. The company has a 95%-plus customer retention rate. Margins are roaring higher. Profits are coming into the picture. * Why NOW Is the Time to Buy Gene Therapy Stocks If Twilio can capitalize on secular CPaaS tailwinds and maintain this growth trajectory for the foreseeable future, then TWLO stock will ultimately head way higher in a long-term window. Source: Shutterstock Skechers (SKX)Unlike many of the other stocks on this list, Skechers (NYSE:SKX) isn't a secular growth stock. Instead, Skechers is just a stable growth stock. But, SKX is an underrated top buy stock for 2019 because, relative to its stable=growth peers in the footwear industry, Skechers is both underappreciated and undervalued, and that's an opportunity for contrarian investors.This isn't a tech company. It's a shoe company, and the footwear industry is a relatively low-growth industry. Yet, within that low-growth footwear industry, Skechers has consistently been one of the fastest growers, with revenue growth that has largely been north of 10% over the past several years. One would expect that, given above-average growth, SKX stock would have an above-average valuation. Not so. SKX stock actually trades at 16x forward earnings, and that multiple is half the size of Nike's (NYSE:NKE) forward multiple.Why the disconnect? Margins. Nike has healthy margins with a strong track record of growing those margins. Skechers has had margin troubles for a while, since it has had to spend to grow. But, last quarter's numbers imply that this trend is changing course. Specifically, for the first time in recent memory, revenues, margins, and profits all rose by a ton last quarter, and the guide implied that this will be the new norm going forward.If true, SKX stock is way undervalued here at 16x forward earnings, and has room to move meaningfully higher in 2019.Source: Stitch Fix Stitch Fix (SFIX)At the overlap of personalization and curation in the retail industry is Stitch Fix (NASDAQ:SFIX), the e-commerce company which creates personalized and professionally curated clothing assortments for its customers. Given the growing desire for retail personalization, and the growing need for retail curation, Stitch Fix should benefit from secular demand tailwinds over the next several years. Yet, the stock is still hardly mentioned in mainstream financial media.That will change with time. Personalized and curated shopping is the future. There are simply too many clothing options out there for a consumer to categorize and filter through all of them and pick the best outfits. That job needs to be done by someone with more know-how and more time, and the final curated assortment should be delivered to the consumer. This is exactly what Stitch Fix does, and the net results are enhanced consumer convenience and more satisfied clothing shoppers.Inevitably, this model for personalized and curated shopping will gain significant traction over the next several years. To be sure, Stitch Fix will have tremendous competition in this space. But, the company has already developed a name for itself in this curation department, and as such, is attracting the best curators and delivering the best clothing assortments. * 7 Consumer Staples ETFs to Buy Now So long as this remains true, Stitch Fix and SFIX stock should remain on healthy growth trajectories.As of this writing, Luke Lango was long SHOP, CHGG, TTD, SKX, NKE and SFIX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post 6 Underrated Stocks to Buy for 2019 appeared first on InvestorPlace.
Five9 (FIVN) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
gained on Tuesday after the education technology company released a stronger than expected earnings report. A provider of online tutoring, textbook rentals and other services to students, Chegg's stock rose 7.6% to close at $37.46, after reporting quarterly earnings of 25 cents per share. It is fourth time in the last four quarters the Santa Clara-based company's earnings have come in above Wall Street expectations.
The growth trends which have impressed investors in recent quarters remained intact in the fourth quarter of 2018.
Editor's note: This story was previously published in October 2017. It has since been updated and republished.The concern about investing in growth stocks usually comes down to valuation. Stocks with significant growth potential usually have a multiple to match. One way around that problem is to invest in small-cap stocks, where the growth stories may not be quite as well known and the valuations may not be quite as stretched.In some cases, small-cap stocks come with more risk; but in most cases, small caps offer more potential rewards.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Buy These 5 Stocks to Play the Megatrend of the Century Here are eight small-cap stocks to buy due to significant growth opportunities. Each of these small-cap companies have valuations that lend themselves to significant upside if those opportunities are captured. Source: Citrix Online via Flickr AppFolio (APPF)AppFolio Inc (NASDAQ:APPF) offers the best, and worst, of small-cap growth investing. On the positive side, revenue from AppFolio's software for property managers is growing nicely. Sales rose nearly 40% in 2017 and are expected to have risen about 30% last year.The primary concern here is valuation. APPF trades at over 12 tines revenue on an enterprise basis. That's a big number in any market. It's also a notable premium to its closest peer, RealPage Inc (NASDAQ:RP).Still, there's reason to see more upside, even for a stock that has gained more than 50% over the past year. AppFolio has turned profitable, and its margins should expand significantly going forward. The company's MyCase software for law offices offers another growth driver for AppFolio sales. Both software products drive exactly the kind of "sticky," recurring revenue investors are looking for in the software space.Again, valuation isn't perfect. But with earnings-per-share likely to clear $1 by the end of the decade, it's not quite as extreme as headline multiples would suggest. With AppFolio's growth prospects and potential as a takeout target, there's likely still some room left in the APPF rally.Source: Rob Wall via Flickr (Modified) Chegg Inc (CHGG)Chegg Inc (NYSE:CHGG) has transformed itself over the past few years.What was formerly a company focused largely on a money-losing textbook rental business has become the go-to platform for college students in the U.S. Chegg offers a wide variety of services to students, ranging from tutoring and online study help to eTextbooks and its legacy print textbook rental business (which is now outsourced, providing a major boost to Chegg profits).Like most stocks on this list, CHGG isn't cheap, trading at over 14 times its revenue and a forward price-earnings ratio of about 60. But with the company's earnings per share expected to nearly double this year, there's enough to support a premium valuation.With Chegg increasingly looking dominant in what its CEO Dan Rosensweig has called "winner take most" markets, a takeover looks likely. Amazon.com, Inc. (NASDAQ:AMZN) has tried to attract college students by building out physical bookstores and offering free Prime memberships. Chegg, which reaches the majority of those students, would give the company both an entry into that market and a wealth of valuable data to boot. * Buy These 5 Stocks to Play the Megatrend of the Century Even if Amazon doesn't come calling, Chegg's expanding service offerings and potential to target high school and graduate students suggest years of growth ahead. And even the current, somewhat pricey, valuation doesn't account for all of that potential.Source: Shutterstock Varonis Systems (VRNS)Varonis Systems Inc (NASDAQ:VRNS) has an intriguing growth story. The company develops software for businesses that manages what it calls "unstructured data." That includes everything from emails to spreadsheets to memos.That data is growing exponentially -- and so is the risk it poses. As seen in leaks at Sony Corp (ADR) (NYSE:SNE) and elsewhere, there's a lot of valuable information contained in those files. Varonis protects them from unwanted entry and it organizes them for corporate managers.The importance of unstructured data continues to drive Varonis revenue higher, with the company's 2018 top-line growth expected to come in at 24%. Sales cycles remain relatively long and intensive, as in many cases Varonis still has to prove the usefulness of the software. That's particularly true for companies who haven't had a data breach … yet. As awareness increases and those cycles shorten, both revenue growth and operating margins will benefit.Meanwhile, VRNS is expected to report a profit for 2018, at least on an adjusted basis. And yet it trades at a bit over six times its trailing-twelve-month revenue, plus cash. That sounds like a big multiple, but it's actually somewhat modest in the SaaS space, particularly given Varonis' growth profile.As sales grow, and that multiple expands, VRNS should continue to climb. Source: Shutterstock Ollie's Bargain Outlet (OLLI)There are very few retail growth stories in the U.S. of any size, particularly in brick-and-mortar retail. But Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) is one to keep an eye on.Ollie's benefits from being in the off-price channel, one of the few areas of retail that has held up well amid the pressure from online retailers like Amazon. And while Ollie's is much smaller than peers TJX Companies Inc (NYSE:TJX) and Ross Stores, Inc. (NASDAQ:ROST), in this case that's a good thing.The company's store expansion plan alone suggests years of growth ahead, with strong same-store sales contributing as well. OLLI isn't necessarily cheap, trading at 41 times analysts' consensus FY19 EPS estimate. * Buy These 5 Stocks to Play the Megatrend of the Century But the company is solidly profitable, has little debt, and has significant whitespace to build out its store count - and revenue. For investors who believe the off-price channel should continue to manage online competition, OLLI is an extremely intriguing choice. Shotspotter (SSTI)Shotspotter Inc (NASDAQ:SSTI) is a classic early-stage growth company. Shotspotter is expected to become profitable for the first time this year.The company's namesake product detects gunfire and notifies law enforcement in real time, making police response more efficient and neighborhoods safer. The product already has been deployed in major cities like Chicago and New York, with seven new cities adopting the software just last month.That growth should continue, as Shotspotter brings on additional municipalities and, eventually, expands internationally as well. Revenue is still relatively small -- just $31 million over the past year -- but a $516 million market cap leaves room for upside. * Buy These 5 Stocks to Play the Megatrend of the Century Continued adoption would make SSTI a likely takeover target for defense companies like Lockheed Martin Corporation (NYSE:LMT) or Northrop Grumman Corporation (NYSE:NOC) or other larger, government-focused suppliers. And with the need for Shotspotter, unfortunately, rising every year, that increased adoption seems likely. Source: Shutterstock LogMeIn (LOGM)Video-conferencing leader LogMeIn Inc (NASDAQ:LOGM) offers a nice combination of growth and value.Trading at just 16 times analysts' consensus EPS estimate, LOGM certainly doesn't look like it's pricing in the 25% EPS growth analysts are expecting this year. With video conferencing demand still increasing and top-line growth expected in 2019, LogMeIn should be able to drive double-digit EPS growth for years to come. That in turn suggests a fair amount of upside from current levels.There are some risks, specifically around competition. But from a long-term perspective, LogMeIn still seems to have years of growth in front of it and it's trading at a price worth paying.Source: Mike Mozart via Flickr (modified) Shake Shack (SHAK)Shake Shack Inc (NYSE:SHAK) is growing. Revenue is expected to jump 27% this year. Same-store sales disappointed in Q3, and guest traffic fell 4%. But the company still has plenty of room to expand, and it recently opened its first restaurant in mainland China.SHAK is a bit of a turnaround play, but the Shake Shack story is still playing out. If the company can stabilize same-restaurant sales, location growth alone should drive profits -- and SHAK stock -- higher.Source: Shutterstock iRobot (IRBT)iRobot Corporation (NASDAQ:IRBT) got a bit ahead of itself last year. In April, IRBT stock traded around $60; by late August, the stock had nearly doubled.IRBT then pulled back over 30% and has subsequently rebounded back near its former highs. But the category itself is growing double-digits, and Internet of Things catalysts could further drive product adoption. * Buy These 5 Stocks to Play the Megatrend of the Century IRBT shares aren't necessarily cheap. But at 39 times next year's earnings, IRBT isn't very expensive for a company in a rapidly growing category. With the company capable of driving 20%-plus EPS growth going forward, that multiple isn't very steep.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post 8 Small-Cap Stocks to Buy for Big-Time Growth Potential appeared first on InvestorPlace.
Chegg Inc (NYSE: CHGG ) reported solid fourth-quarter results and raised its 2019 guidance Monday The company enjoys a leading position as an online student platform, and the fundamental outlook for Chegg ...
A profitable quarter and solid guidance for 2019 sent Chegg (NYSE:CHGG) stock to an all-time high overnight. So what exactly has investors hyped about Chegg stock?Let's take a look.The company, which rents textbooks and provides online help to college students, reported a fourth-quarter profit of $5.3 million, 4 cents per share fully diluted, on revenue of $95.5 million. The shares went up 10%, to over $38 per share, thanks to strong year-over-year growth and hope it will do even better in 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFull-year revenue was $321 million, up 26% over 2017. CEO Dan Rosenzweig said he expects 2019 revenue of $390-395 million, up 22%, most of it in the form of services revenue with gross margins of about 75%. A Lasting Pop for Chegg Stock?CHGG investors reacted like they had just discovered the company, which in a way they had. Before earnings, CHGG stock had a market cap of under $4 billion. But it has the kind of stock chart you dream about, a string of gains that started in spring 2016, at a little over $4 per share, and were interrupted only once, by last fall's tech wreck.Since dropping from an August high of over $32 per share to an October low of a little under $24 per share, CHGG stock has renewed its march upward. Patient investors have been handsomely rewarded. * 10 Stocks That Every 20-Year-Old Should Buy To its customers, Chegg's offer doesn't seem to have changed much. How it delivers its main service of textbook rental has. An alliance with Ingram signed in February 2015 let Chegg offload the inventory risks of moving books. A 2017 alliance with Pearson (NYSE:POS) let it move entirely to a "rental only" business model.The result is that most of the company's revenue today comes from online tutorials, its latest acquisitions being companies like Math42, WriteLab and StudyBlue. It's also said to be a good place to work, one that puts students first. A Changing Business ModelThe rising cost of textbooks, and the rise of online resources to buy and rent books has changed how students acquire them. It also opened students up to new online resources like Chegg's tutoring services, college selection services and internship help.Offloading inventory risks lets CHGG increase profitability at a cost to its revenue base, and 2018 was the first-year revenue beat 2014's $304 million. But that higher 2014 revenue also saw a loss of nearly $65 million, while 2018's record saw net income of $5.3 million, $31.8 million when non-GAAP measures are used.Analysts have been warming to the ability of Chegg stock to beat street estimates on revenue and income. The steady gains also pushed Chegg, worth less than $500 million a few years ago, into a more investable category. If it hits earnings targets this year, it should be worth well over $5 billion by the end of 2019. The Bottom Line on CHGG StockChegg's success in an online business model, along with small, smart acquisitions, make it a different proposition to the old textbook rental business.Chegg has stabilized the balance sheet. That now shows over $450 million in cash and short-term investments, against just $7 million of long-term debt. Another $283 million is held in convertible senior notes, which may turn into equity and strengthen the balance sheet further.The success and stability of Chegg stock could also make it an attractive buy-out candidate. There have been no rumors to that effect, but its relationships with students might look very good to an Amazon (NASDAQ:AMZN) or even to Pearson, with which it already does business.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post Why Chegg Stock Will Keep Chugging Higher appeared first on InvestorPlace.
Video game developers and chipmakers led stocks higher Tuesday, as lawmakers hustled to avoid a government shutdown and the Dow Jones Index held at 25,000.
Chegg (CHGG) reports better-than-expected earnings and revenues in the fourth quarter of 2018, given strong contribution from Chegg Services.
Over the past two decades, technological advances have impacted nearly every aspect of our lives. Chegg provides a variety of services designed to make education more affordable and effective. Over the past two years, Chegg has been in a roaring uptrend.
Dow Jones futures jumped as lawmakers reached a tentative deal to avoid a new government shutdown. The current stock market rally is split as indexes pause and top stocks lead.