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.
Career Education (CECO) Hits a 52-Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of Career Education (CECO - Free Report) ? Shares have been on the move with the stock up 11.6% over the past month. CECO hit a new 52-week high of $14.84 in the previous session. Career Education has gained 22.3% since the start of the year compared to the 2.3% move for the Consumer Discretionary sector and the 21.3% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 2, 2018, Career Education reported EPS of $0.25 versus the Zacks Consensus Estimate of $0.22.
For the current fiscal year, Career Education is expected to post earnings of $0.95 per share on $587.2 million in revenues. This represents a 206.45% change in EPS on a -1.55% change in revenues. For the next fiscal year, the company is expected to earn $1.16 per share on $613.8 million in revenues. This represents a year-over-year change of 22.11% and 4.53%, respectively.
Valuation Metrics
Career Education may be at a 52-week high right now, but what might the future hold for CECO? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Career Education has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 28.5X versus its peer group's average of 19.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Career Education currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Career Education meets the list of requirements. Thus, it seems as though CECO shares could have potential in the weeks and months to come.
How Does Career Education Stack Up to the Competition?
Shares of Career Education have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Bright Horizons Family Solutions (BFAM - Free Report) , Strayer Education (STRA - Free Report) , and Grand Canyon Education (LOPE - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 43% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CECO, even beyond its own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Career Education (CECO) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Career Education (CECO - Free Report) ? Shares have been on the move with the stock up 11.6% over the past month. CECO hit a new 52-week high of $14.84 in the previous session. Career Education has gained 22.3% since the start of the year compared to the 2.3% move for the Consumer Discretionary sector and the 21.3% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 2, 2018, Career Education reported EPS of $0.25 versus the Zacks Consensus Estimate of $0.22.
For the current fiscal year, Career Education is expected to post earnings of $0.95 per share on $587.2 million in revenues. This represents a 206.45% change in EPS on a -1.55% change in revenues. For the next fiscal year, the company is expected to earn $1.16 per share on $613.8 million in revenues. This represents a year-over-year change of 22.11% and 4.53%, respectively.
Valuation Metrics
Career Education may be at a 52-week high right now, but what might the future hold for CECO? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Career Education has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 28.5X versus its peer group's average of 19.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Career Education Corporation Price and Consensus
Career Education Corporation Price and Consensus | Career Education Corporation Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Career Education currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Career Education meets the list of requirements. Thus, it seems as though CECO shares could have potential in the weeks and months to come.
How Does Career Education Stack Up to the Competition?
Shares of Career Education have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Bright Horizons Family Solutions (BFAM - Free Report) , Strayer Education (STRA - Free Report) , and Grand Canyon Education (LOPE - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 43% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CECO, even beyond its own solid fundamental situation.