What's Driving Strategic Education Inc's Surprising 18% Stock Rally?

Strategic Education Inc (STRA, Financial) has seen a significant surge in its stock price over the past three months. The company's market cap stands at $1.97 billion, with its stock price currently at $80.71. Over the past week, the stock price has seen a slight dip of 0.71%, but the overall trend over the past three months has been positive, with a gain of 17.71%. The current GF Value of the stock is $77.68, which indicates that the stock is fairly valued. This is a significant improvement from three months ago when the stock was modestly undervalued with a GF Value of $79.9.

Introduction to Strategic Education Inc(STRA, Financial)

Strategic Education Inc. operates in the education industry, providing access to high-quality education through campus-based and online post-secondary education offerings. The company operates through wholly-owned subsidiaries Strayer University and Capella University, both accredited post-secondary institutions of higher education located in the United States, as well as Torrens University, an accredited post-secondary institution of higher education located in Australia. It provides employees with access to affordable and industry-relevant training, certificate, and degree programs. 1715386484938305536.png

Profitability Analysis of STRA

Strategic Education Inc. has a Profitability Rank of 7/10, indicating a strong profitability potential. The company's Operating Margin is 5.66%, which is better than 45.91% of the companies in the industry. The ROE and ROA stand at 2.26% and 1.67% respectively, while the ROIC is 2.06%. The company has maintained profitability for 9 out of the past 10 years, which is better than 82.01% of the companies in the industry. 1715386509663727616.png

Growth Analysis of STRA

The company's Growth Rank is 5/10, indicating moderate growth potential. The 3-Year and 5-Year Revenue Growth Rate per Share are -0.50% and 2.30% respectively. The future total revenue growth rate estimate for the next 3 to 5 years is 1.26%. The 3-Year EPS without NRI Growth Rate is -19.10%, but the future estimate for the next 3 to 5 years is a promising 15.00%. 1715386526692601856.png

Major Holders of STRA Stock

Among the major holders of STRA stock are renowned investors Jim Simons (Trades, Portfolio) and Ray Dalio (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds 151,678 shares, accounting for 0.62% of the total shares, while Ray Dalio (Trades, Portfolio) holds 45,973 shares, making up 0.19% of the total shares.

Competitors in the Education Industry

Strategic Education Inc. faces competition from Adtalem Global Education Inc(ATGE, Financial) with a market cap of $1.8 billion, Stride Inc(LRN, Financial) with a market cap of $1.92 billion, and Laureate Education Inc(LAUR, Financial) with a market cap of $2.27 billion.

Conclusion

In conclusion, Strategic Education Inc. has shown promising growth and profitability potential. The company's stock has seen a significant surge over the past three months, and its profitability and growth ranks indicate a strong future performance. However, the company faces stiff competition in the education industry. Investors should keep a close eye on this stock and consider its potential for future growth.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.