New Oriental Education & Technology Group ( EDU - Snapshot Report ) recently spiked into a new multi-year high after reporting another great quarter that included a 100% earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock offers a lesson on momentum.

Company Description

New Oriental Education & Technology Group provides private educational services primarily in the people's Republic of China. The company was founded in 1993 and has a market cap of $5.4 billion.

EDU has been bucking the weak market, recently surging higher and jumping into a new multi-year high. The gains come on the heels of strong Q4 results from July that came in well ahead of expectations.

Fourth-Quarter Results

Revenue for the period was up 59% from last year to $138 million. Earnings also looked great, coming in at 10 cents, double the Zacks Consensus Estimate calling for 5 cents.

The good quarter was driven by an increase in enrollments, with the number of students from last year climbing 12% to 489,000.

Financial Profile

New Oriental also has an awesome financial profile, with cash and short-term investments up $198 million from last year to $617 million against no long-term debt.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year adding 4 cents to 90 cents. The next-year estimate also added 4 cents, climbing to $1.18, a bullish 32% growth projection.

Valuation

But in spite of the gains, the valuation picture still looks reasonable, with a PEG ratio of 1.09 only marginally higher than the benchmark of 1 for value.

12-Month Chart

On the chart, shares recently surged higher into a new multi-year high. Look for support from the trend line on any weakness. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.