As the market indexes try to rally, online learning leader Stride has graduated into a buy zone. LRN stock is on pace to notch its 10th straight up week.
Boosted by 164% earnings growth last quarter, Stride earns placement on the IBD Breakout Stocks Index, which is updated weekly.
Showing demand among large investors, the Virginia-based company has also grabbed a spot on the latest list of new buys by the best mutual funds. Stride joins Adtalem Global Education and Afya on this exclusive stock screen.
Stride sports a 97 Composite Rating and has delivered average annual EPS gains of 48% over the last three years. Analysts expect earnings to rise just 13% when Stride reports fiscal Q1 2023 numbers on Oct. 25 and also forecast a 4% full-year slowdown.
But Wall Street sees Stride rebounding to a healthy 22% EPS increase in fiscal 2024.
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Stride Drives Online Learning From K-12 To Adults
Formerly known as K12, Stride changed its name in 2020. In addition to K-12 programs and curriculums, Stride offers one-on-one tutoring and career development, which provides training across three core areas: MedCerts, Tech Elevator and Galvanize.
MedCerts helps adults develop careers with in-demand training in health care and IT. Tech Elevator provides a coding boot camp for future software developers. And Galvanize empowers learners and leaders pursuing skills as software engineers and more.
Stride Among Top Online Learning Stocks To Watch
While fellow online learning peer Adtalem sets up a potential new breakout, Stride has already strolled right into a buy zone.
Rising sharply off its August low, LRN stock cleared a 45.03 buy point earlier this month. The buy zone extends to 47.23.
Showing market leadership, Stride's relative strength line has soared since August, putting it just shy of a new high.
Weekly volume has been below average, but trade picked up Wednesday coming blow average buy rising. Look for heavy volume to further confirm demand for a fresh run.
While the market tries to establish a new uptrend, keep in mind that Stride is on deck to report earnings Oct. 25, adding an element of risk and uncertainty for investors sitting on small gains.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
