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4 Online Education Stocks to Gain as Coronavirus Cases Rise

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Schools have finally started reopening in the United States but the big question is if parents and students are confident enough for physical classes. On Nov 8, the United States became the first country to cross 10 million coronavirus cases.

Both students and parents will feel compelled to stick to the learn-from-home model. The U.S. education system has been one of the biggest casualties of the pandemic, with both parents and students hesitant to go to school. This has made online education a prerequisite to help students complete their semester this year.

Coronavirus Fears Rise Again

On Sunday, the United States became the first county to record more than 10 million coronavirus cases, according to a Reuters tally. The past 10 days have seen an astounding rise in coronavirus cases, with more than 1 million testing positive.

Naturally, parents and students are concerned about visiting campuses. Although public education is among Americans’ top priorities, most students feel that they should continue their education through some form of distance learning. According to a report by data intelligence company, Morning Consult, 83% of the students surveyed are attending schools remotely this season. Among them, 66% are confident about taking decisions in their school. Others feel that their online learning has not impacted their performance or are doing better.

Online Education to Gain Traction

Experts had earlier warned that infections could peak in autumn when most schools start their semesters and that is exactly what is happening. Adopting the e-learning method has so far proven fruitful for students.

Not only the United States but also schools across the world have started imparting classes online given that there are no immediate signs of coronavirus subsiding. In fact, with the economy reopening the situation has worsened as more cases get reported every day. Although most students are staying at home during this time, they can keep on learning with various video lectures and reading materials, and even opt for online tests. This is where online education is proving to be a game-changer.

Stocks to Watch

The adoption of online solutions in recent months has been unprecedented. With no timeline for a possible coronavirus vaccine, it is likely that parents, students and teachers will prefer shifting to online  education. Given this scenario, it is prudent to keep a close watch on these four online education providers that are poised to grow.

K12 Inc. (LRN - Free Report) is a leading national provider of proprietary curriculum and educational services created for online delivery to students in kindergarten through K-12.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.2% over the past 60 days.  K12 sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Public Education, Inc. (APEI - Free Report)  is an online provider of higher education, focused primarily on serving the military and public service communities.

The company’s expected earnings growth rate for the current year is 4.6%. Its shares have gained 1.6% in the past three months. American Public Education has a Zacks Rank #3 (Hold).

Grand Canyon Education, Inc. (LOPE - Free Report) is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business and healthcare. 

The company’s expected earnings growth rate for next year is 12.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Grand Canyon Education has a Zacks Rank #3.

OneSmart International Education Group Limited  provides K-12 after-school education services. It also offers one-to-one education, examination question analysis, mistakes settlement, tutoring, culture programs and other services. 

The company’s expected earnings growth rate for next year is more than 100%. Its shares have gained 1% in the past three months. OneSmart International Education Group has a Zacks Rank #3.

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