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Grand Canyon Education (LOPE) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Grand Canyon Education (LOPE - Free Report) ? Shares have been on the move with the stock up 5.5% over the past month. LOPE hit a new 52-week high of $117.12 in the previous session. Grand Canyon Education has gained 29.7% since the start of the year compared to the 6.7% move for the Consumer Discretionary sector and the 10.1% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great 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, Grand Canyon Education reported EPS of $1.52 versus the Zacks Consensus Estimate of $1.39 while it beat the consensus revenue estimate by 0.59%.
For the current fiscal year, Grand Canyon Education is expected to post earnings of $4.83 per share on $1.06 billion in revenues. This represents a 21.97% change in EPS on an 8.4% change in revenues. For the next fiscal year, the company is expected to earn $5.28 per share on $1.15 billion in revenues. This represents a year-over-year change of 9.39% and 8.53%, respectively.
Valuation Metrics
Grand Canyon Education may be at a 52-week high right now, but what might the future hold for LOPE? 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.
Grand Canyon Education has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 22.8X versus its peer group's average of 19.7X. Additionally, the stock has a PEG ratio of 1.66. 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, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Grand Canyon Education fits the bill. Thus, it seems as though LOPE shares could still be poised for more gains ahead.
How Does Grand Canyon Education Stack Up to the Competition?
Shares of Grand Canyon 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 solid potential picks, including Career Education (CECO - Free Report) , American Public Education (APEI - Free Report) , and Strayer Education (STRA - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Grand Canyon Education. Still, the fundamentals for LOPE are promising, and it still has potential despite being at a 52-week high.
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Grand Canyon Education (LOPE) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Grand Canyon Education (LOPE - Free Report) ? Shares have been on the move with the stock up 5.5% over the past month. LOPE hit a new 52-week high of $117.12 in the previous session. Grand Canyon Education has gained 29.7% since the start of the year compared to the 6.7% move for the Consumer Discretionary sector and the 10.1% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great 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, Grand Canyon Education reported EPS of $1.52 versus the Zacks Consensus Estimate of $1.39 while it beat the consensus revenue estimate by 0.59%.
For the current fiscal year, Grand Canyon Education is expected to post earnings of $4.83 per share on $1.06 billion in revenues. This represents a 21.97% change in EPS on an 8.4% change in revenues. For the next fiscal year, the company is expected to earn $5.28 per share on $1.15 billion in revenues. This represents a year-over-year change of 9.39% and 8.53%, respectively.
Valuation Metrics
Grand Canyon Education may be at a 52-week high right now, but what might the future hold for LOPE? 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.
Grand Canyon Education has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 22.8X versus its peer group's average of 19.7X. Additionally, the stock has a PEG ratio of 1.66. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Grand Canyon Education, Inc. Price and Consensus
Grand Canyon Education, Inc. Price and Consensus | Grand Canyon Education, Inc. 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, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Grand Canyon Education fits the bill. Thus, it seems as though LOPE shares could still be poised for more gains ahead.
How Does Grand Canyon Education Stack Up to the Competition?
Shares of Grand Canyon 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 solid potential picks, including Career Education (CECO - Free Report) , American Public Education (APEI - Free Report) , and Strayer Education (STRA - 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.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Grand Canyon Education. Still, the fundamentals for LOPE are promising, and it still has potential despite being at a 52-week high.