We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Today’s Bull of the Day is a company that’s poised to take advantage of the widespread re-opening in the US after more than a year of quarantines and travel restrictions. There’s another side of that coin however, and it’s the stocks that rallied hard last year because of the lockdown and other restrictions but now find themselves richly valued during the return to normal conditions.
One of the pleasant surprises about the US economy during the pandemic was that a great deal of the work people had been performing in a traditional office setting could be performed nearly as well from a remote location. The shares of video-conferencing and file-sharing companies soared and businesses adapted to the new normal of having most or all of their employees working from home.
That same trend also extended to the education industry. With students from pre-school through the college level unable to attend classes in person, online and remote educational solutions became the norm. In many cases, school districts and educational institutions had to scramble to put together a plan for teaching in a remote environment. That urgency created a “gold rush” in the online education business and revenues soared.
In the case of professional work from home, many employees found that they actually liked not going to the office (and wearing sweatpants all day) and will continue performing at least some of their duties in that setting. The education market is quite different. The return to traditional classroom settings has been frustratingly slow, but concerns that the remote format has resulted in a lower-quality learning experience for most students will ensure that “learn from home” isn’t going to have anywhere near the staying power of “work from home” movement.
Educational software and services provider Chegg Inc (CHGG - Free Report) was one of the lucky recipients of enthusiasm for remote learning solutions, with the shares rising from around $30/share as the Covid-19 pandemic started to over $115/share at the beginning of 2021.
They’ve fallen roughly 35% since January however and it looks as thought there could be more trouble to come.
Earnings estimates for the next two quarters, the whole year and even next year have been slipping.
That’s especially a problem because even after the recent decline in share price, Chegg still trades at a forward P/E Ratio in excess of 53X.
In an economy that’s about to experience the pent-up demand of more than a year of lockdowns, investors simply can’t afford to get stuck in yesterday’s trends. With huge pressure from all sides to re-open physical schools, it’s difficult to imagine big spending going forward on distance-learning solutions.
Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: Chegg Inc (CHGG)
Today’s Bull of the Day is a company that’s poised to take advantage of the widespread re-opening in the US after more than a year of quarantines and travel restrictions. There’s another side of that coin however, and it’s the stocks that rallied hard last year because of the lockdown and other restrictions but now find themselves richly valued during the return to normal conditions.
One of the pleasant surprises about the US economy during the pandemic was that a great deal of the work people had been performing in a traditional office setting could be performed nearly as well from a remote location. The shares of video-conferencing and file-sharing companies soared and businesses adapted to the new normal of having most or all of their employees working from home.
That same trend also extended to the education industry. With students from pre-school through the college level unable to attend classes in person, online and remote educational solutions became the norm. In many cases, school districts and educational institutions had to scramble to put together a plan for teaching in a remote environment. That urgency created a “gold rush” in the online education business and revenues soared.
In the case of professional work from home, many employees found that they actually liked not going to the office (and wearing sweatpants all day) and will continue performing at least some of their duties in that setting. The education market is quite different. The return to traditional classroom settings has been frustratingly slow, but concerns that the remote format has resulted in a lower-quality learning experience for most students will ensure that “learn from home” isn’t going to have anywhere near the staying power of “work from home” movement.
Educational software and services provider Chegg Inc (CHGG - Free Report) was one of the lucky recipients of enthusiasm for remote learning solutions, with the shares rising from around $30/share as the Covid-19 pandemic started to over $115/share at the beginning of 2021.
They’ve fallen roughly 35% since January however and it looks as thought there could be more trouble to come.
Earnings estimates for the next two quarters, the whole year and even next year have been slipping.
That’s especially a problem because even after the recent decline in share price, Chegg still trades at a forward P/E Ratio in excess of 53X.
In an economy that’s about to experience the pent-up demand of more than a year of lockdowns, investors simply can’t afford to get stuck in yesterday’s trends. With huge pressure from all sides to re-open physical schools, it’s difficult to imagine big spending going forward on distance-learning solutions.
Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How to Profit from Trillions on Spending for Infrastructure >>