Aspen Group (ASPU - Free Report) is a Zacks Rank #1 (Strong Buy) with some low Zacks Style Scores, but there is something to this stock. Yesterday, it rose more than 9% as increased significantly. Let’s take a look at why investors are sending shares of ASPU up in a big way in this Bull of the Day article.
Aspen Group, Inc. is an online post-secondary education company. It offers certificate programs and associate, bachelor, master, and doctoral degree programs in a range of areas, including business and organization management, education, nursing, information technology, and general studies. Aspen Group, Inc. is headquartered in Denver, Colorado.
The most recent earnings report was a very good one. The company posted a loss of 3 cents when the Zacks Consensus Estimate was calling for a loss of 7 cents. That four cent difference was good for a 57% positive earnings surprise. Investors love to see that and the also tells us that the move to profitability is not too far off.
I see the estimate are moving in the right direction for ASPU. The current quarter as moved from a loss of 7 cents 90 days ago to a loss of 5 cents. The next quarter has also seen a nice bump up in number from a loss of four cents to two cents.
The fiscal year 2020 has moved from a loss of 29 cent to a loss of 22 cents, so still some work to do there.
The real story here is the fiscal 2021 numbers. They moved from a loss of two cents to a gain of two cents over the last 60 days.
So the pathway to profitability is there, the question really becomes when does the company turn the corner? There is a good chance it happens longs before the 2021 fiscal year.
Losses for this internet services company are shrinking and the topline has some outstanding growth. I see 49% year over year growth and that is buoyed by 16.7% sequential growth. That is great to see and will push this company to profitability in a few quarters.
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