|Bid||125.82 x 800|
|Ask||126.42 x 1200|
|Day's Range||123.65 - 130.29|
|52 Week Range||74.50 - 142.38|
|Beta (5Y Monthly)||1.44|
|PE Ratio (TTM)||50.33|
|Earnings Date||Apr 20, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Aug 31, 2017|
|1y Target Est||151.91|
New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU), the largest provider of private educational services in China, today announced preliminary estimated revenues for the third quarter of fiscal year 2020 ending February 29, 2020.
IBD Stock Of The Day: TAL Education stock is one for the watchlist, outperforming the stock market correction despite the China coronavirus outbreak.
Agora.io, the leading voice, video and live interactive streaming platform, teamed up with New Oriental Education & Technology Group Inc.(NYSE: EDU), one of the largest providers of private educational services in the world and a leader in the Chinese market, to launch the "New Oriental Cloud Classroom," a remote, interactive classroom experience to aid in the displacement of students and teachers during the coronavirus outbreak. Bringing more than one million students into virtual classrooms in just seven days' time, this joint project is the latest enterprise application of Agora's real-time engagement platform.
(Bloomberg) -- Koolearn Technology Holdings Ltd. has soared alongside rival Chinese online learning companies since the coronavirus outbreak. Now, the stock has become the $36 billion industry’s priciest as well as one of its most shorted.A unit of New York-listed New Oriental Education & Technology Group Inc., Koolearn has surged 83% this year after the epidemic shut schools and forced many of the country’s 200 million-plus school students online. In response, the company hosted free classroom live-streaming and other activities for its more than two million K-12 and college learners, hoping to snag new users and quicken growth. The stock is now trading at 17 times blended forward 12-month sales, roughly quadruple the 4.4 average of 46 Chinese education companies tracked by Bloomberg.But some investors question the extent to which the loss-making company -- of which Tencent Holdings Ltd. owns almost 10% -- can convert users pushed online by necessity into longer-term paying customers. As of Feb. 25, about 14.2% of Koolearn’s free-floating stock had been shorted by investors, not far off a historic high of 15.7% set on Feb. 18, according to Markit data. And at HK$33.75, Koolearn is already trading 26% above its average target price.“This model is not necessarily sustainable,” said Jacky Choi, chief investment officer at Zeal Asset Management. “The conversion rate of online education is actually very low, which is the risk these companies will face in the future.”Read more: Parents Grapple with E-learning as Chinese Schools Stay ShutInvestors remain sanguine about Koolearn’s industry over the longer term. It’s taken off over past decades: In 2018, revenue from Chinese e-learning climbed 26% to 252 billion yuan ($36 billion) and paying users reached 135 million, according to a report by iResearch. Revenue will double by 2022, the research house estimates.But there’re a lot of competitors for a slice of that pie. Koolearn is spending at a furious pace to expand and attract users, keeping it in the red, said Ye Le, a China Securities analyst. It’s expected to remain loss-making till at least 2022 though those losses will shrink, according to projections compiled by Bloomberg.Virus Investors Don’t Need No (Online) Education: Tim CulpanTo contact Bloomberg News staff for this story: Amy Li in Shanghai at email@example.com;Kari Lindberg in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Charlie Zhu, Helen YuanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Investors looking for an angle on the coronavirus crisis have naturally landed upon the online education sector in the hopes that tens of millions of quarantined school kids will turn such providers into profit-making machines on par with China’s hottest internet companies.Almost every mainland province and city has pushed back the starting date of the spring term by weeks. Most students haven’t seen the inside of a classroom since Lunar New Year in late January. Not wanting to be left behind, students, their schools and parents have turned to online alternatives, including options not offered by traditional education businesses.Giant Alibaba Group Holding Ltd., for example, added 100,000 servers to support its free DingTalk messenger, which is being used across the country to help pupils communicate with teachers and watch online classes. A similar tale is told at WeChat provider Tencent Holdings Ltd.Even San Fransciso-based Seesaw Learning Inc., developer of an early-childhood learning and communication app with less than 10% of revenue from China, saw a 31% jump in traffic from there and 21% from Hong Kong. Co-founder Adrian Graham admits it’s hard to tell whether that spike is due to normal post-new year usage increases or the impact of quarantined kids at the mostly international schools in the Greater China region that use the product.As a result, this could be the biggest sustained, mass experiment in online education since the internet was founded in the 1980s. But for those who specialize in education as a business, there’s little to suggest a surge of online students will boost the bottom line.In China, the commercial education business is driven chiefly by demand for after-school tuition (AST) classes. In physical classrooms, also known as cram schools, which are owned and operated by these providers, children as young as kindergartners spend an extra few hours after their normal day (and on weekends and during school holidays) to bone up on core subjects of Chinese, English and mathematics.To deal with the quarantines, TAL Education Group, one of China’s largest education companies, is moving students from offline classes to its programs and refunding the difference in tuition fees, with online up to 50% cheaper, Daiwa Capital Markets HK Ltd. analysts John Choi and Candis Chan wrote this month. New Oriental Education & Technology Group Inc., the other big player in Chinese education and a leader in test-preparation courses, is also moving students to its web and app platforms, they wrote. A key narrative supporting the thesis for big online education profits is that the massive home-schooled education program now under way will work as great marketing for companies like TAL and New Oriental, which spend a lot of money just getting students to enroll in their classes. A captive market of kids forced to learn via the internet might then be converted to long-term online tuition customers. That’s the theory, anyway.In truth, they’d better hope that doesn’t happen. Online is not as profitable as physical classrooms, competition is tougher, and average prices are falling faster. Take TAL as an example. Revenue for the three months to Nov. 30 climbed 47% from the previous year. Online sales were the major driver, climbing 86%. But actual enrollments grew 107%. In other words, student numbers rose faster than revenue because average prices actually fell 9% for the period.So while online has expanded, it still accounts for only 18% of total revenue. The glass-half-full scenario would tell you that there’s great potential ahead. A more pessimistic analysis would suggest that if TAL needs to cut prices this early, then there’s not a lot of room to boost profitability as time marches on. And the company is already suffering pressure that is hurting the bottom line. Operating margin shrank to 9% from 12% in the previous year, with net income plunging 77%.New Oriental isn’t faring much better. Online education accounted for 6% of its revenue in the latest fiscal year. The company gets more than 80% of sales from language training and test preparation. That indicates that internet-based programs have great potential. Yet data show New Oriental is struggling to scale. Subsidiary Koolearn Technology Holding Ltd., which it spun off and listed in Hong Kong, posted revenue growth of just 19% in the six months to Nov. 30. What’s more, operating loss tripled with margin deteriorating from -4.6% to -16.5%.One company might have nailed it, however. GSX Techedu Inc. describes itself as “a leading online K-12 large-class after-school tutoring service provider.” GSX’s niche is massive live online classes — it boasts being able to host 100,000 students in a single broadcast — that allow it to rake in cash while saving on teacher salaries, which account for a major proportion of the costs borne by rivals.That scalability helped it turn profitable in 2018, a feat repeated last year, earning it an operating margin of 10.7%, in line with TAL and New Oriental.GSX has since been joined in offering massive classes. More than 2.4 million users are reported to have tuned in for some TAL elementary-school classes during the coronavirus period. Others are jumping aboard, too. Alibaba, for example, developed DingTalk for enterprise use. While it launched a campus-focused program for the product last year, it wasn’t until the current crisis that its popularity in education really took off. Worse for GSX, Alibaba is offering it for free and allowing schools to make use of existing teachers and materials.So while the outbreak is necessitating internet-based education options, it’s also highlighting how cheap online learning can be. The great thing about the internet is its ability to allow anyone to deliver content easily and cheaply. That may not be the outcome education companies really would be hoping for.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Zacks.com featured highlights include: ACM Research, SLM, YETI and New Oriental Education & Technology
Microsoft cooled off and so did other megacap techs amid news that the FTC will investigate these companies' past acquisitions. The Dow Jones ended flat.
Zacks.com featured highlights include: ACM Research, SLM, 1-800-FLOWERS.COM and New Oriental Education & Technology
U.S. service sector and job market are flourishing, per January's ISM's non-manufacturing report. Investors can make the most by investing in the top-performing sectors.
Higher investments in marketing and student recruitment hurt Adtalem's (ATGE) fiscal Q2 earnings. However, growth of the RN to BSN program helps the company to post better-than-expected results.
A Relative Strength Rating upgrade for New Oriental Education & Technology shows improving technical performance.
Market investing is all about growth – finding growth-oriented stocks, and growing the initial investment. The key, of course, is identifying the stocks that are going to climb higher. While past performance is no guarantee of future returns – an old cliché of investing – it’s natural to look at how stocks have performed before you put your money down.We’ve used TipRanks’ Stock Screener to home in on three growth stocks – names that exceeded 90% growth in 2019, and that show an upside potential of 20% or more in the coming months. These are companies that outperformed the broader markets, and are considered likely to continue outperforming. In short, this is where to go to watch your investments grow.Target Corporation (TGT)We’ll start with an established name in retail, Target. To put it simply, this company performed quite spectacularly in 2019, gaining 98% over the course of the year. For comparison, the S&P 500 grew by 29%, and Target’s chief competitors, Walmart and Costco, rose by 20% and 58%, respectively.The outperformance was clear from the quarterly reports, too. Target met or exceeded expectations in the first three quarters of the year, with Q3 showing a 15% earnings beat. The outlook for Q4 is also upbeat, with management predicting that full year same-store sales will increase by over 3%.All the news isn’t rosy, however, as the holiday season was weaker than hoped. TGT shares have slipped 14% so far in January, as the Christmas shopping results have come in. Wall Street, however, views this as an opportunity – TGT is still considered a strong growth name, and the pullback makes the stock a better bargain.This point of view was set out by 5-star analyst Christopher Horvers, of J.P. Morgan, in a recent note on TGT. He said that the decline in share price “due to disappointing holiday comps represents a key buying opportunity. The stock offers the best near- and medium-term risk-reward in the [retail] space…”With this in mind, Horvers raised his price target to $144, a 44% boost, to back up his Buy rating. At its new level, his price target implies a possible upside of 30% to TGT. (To watch Horvers’ track record, click here)Overall, Target stock has a Moderate Buy from the analyst consensus, based on 14 Buy ratings and 7 Holds. Shares are selling for $110.74, and the $138.22 average price target suggests an upside potential of 25% to the stock. (See Target stock analysis on TipRanks) New Oriental Education & Technology Group, Inc. (EDU)There is a strong industry of private educational and tutoring companies in China. With a market cap of $19 billion, New Oriental is one of the largest such companies, offering services in foreign language training, assessment test and college prep courses, and tutoring for primary and secondary level students. In addition, the company develops and distributes educational software as well as other technology.Of the stocks on this list, EDU showed the highest 2019 growth rate – a whopping 121%. Not to mention recent quarterly numbers show that the company is still on an upward trajectory. In January, EDU reported results for fiscal Q2. EPS, at 36 cents, was 57% higher than anticipated, but even better, was up 147% year-over-year. Revenues, at $785.2 million, were up 32% year-over-year. Altogether, it was a superb performance, driven by large gains in enrollment.Nomura analyst Jessie Xu sees a big year ahead for EDU. He writes, “We expect total revenue to increase by 26% y-y in FY20F, primarily driven by the strong revenue growth in K12 business (50%-plus year-over-year). This should be well supported by the K12 enrollment momentum (50%-plus year-over-year), in our view. We forecast U-Can and POP Kids enrollment to grow by 44% and 57% year-over-year in FY20F…”Xu gives the stock a Buy rating with a new $158 price target, up from $135, indicating confidence in a 30% upside. (To watch Xu’s track record, click here)EDU gets a unanimous Strong Buy from the analyst consensus, with 4 recent Buy ratings. The $155.99 average price target suggests an upside potential of 28% from the current $121.55 trading price. (See New Oriental Education stock analysis on TipRanks) Constellium SE (CSTM)Heavy industry sometimes gets dismissed in the information economy, but it can’t be forgotten. After all, raw materials must be acquired, and infrastructure must be built. Paris-based Constellium inhabits the industrial world, as a producer and provider of aluminum products to the aerospace, automotive, defense, industrial, packaging, and transportation sectors. The company is a leader in the development of advanced aluminum alloys, and its clients include Airbus, Audi, BMW, Boeing, and Ford.Constellium saw over 5.7 billion Euros in revenue in fiscal 2018, while in 2019, the company saw its stock price grow by an impressive 91%. CSTM is expected to report Q4 earnings on March 11, and the consensus is for strong sequential growth – EPS of 6 cents, on sales of $1.4 billion. This will be a tonic for the company after a disappointing Q3.Looking ahead at the coming year, Northland’s Gus Richard is bullish on CSTM. The 5-star analyst writes, “We see higher demand for Constellium's aluminum products given shifts in beverage packaging and auto markets and also sees an opportunity for price increases as demand increases…”In line with his optimism, Richard opened coverage of the stock at a Buy rating, with a price target of $19, suggesting an upside potential of 67%. (To watch Richard's track record, click here)Richard’s review is the most recent on CSTM, making the consensus rating a Moderate Buy. The company shows a strong upside potential, and shares are currently a bargain at $11.36. (See Constellium stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Dow Jones futures rallied, bolstering the stock market rally, despite soaring coronavirus cases and plunging Chinese stocks. Google earnings loom.
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The stock market fell sharply early Monday but recovered some lost ground as concerns about the Chinese coronavirus hit markets around the world.
New Oriental Education & Technology Group Inc. (NYSE:EDU) shares fell 5.4% to US$133 in the week since its latest...