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Strategic Education's (STRA) Capella Boosts FlexPath Portfolio

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Strategic Education, Inc.’s (STRA - Free Report) wholly owned subsidiary, Capella University, recently announced that it is extending the competency-based direct assessment FlexPath learning program. It will now include a Doctor of Business Administration (“DBA”) course. The new format will entirely cover business degrees comprising of undergraduate and postgraduate courses in business administration. This new course of action will be effective from a year after the launch of Capella’s Doctor of Nursing Practice or DNP program in the FlexPath format.

The Higher Learning Commission has approved this inclusion in the FlexPath format of Capella University.

Purpose of the Expansion

Capella University’s FlexPath format is comprised of more than 10,000 graduates and students. The DBA program in FlexPath will encourage experiential-knowledge-based and technology-driven professional studies that will help students achieve their financial, professional and personal goals.

Students can personalize their course of learning according to their time and preferences. Mentors of the programs are majorly industry leaders and real-life professionals, thus guaranteeing outstanding learning of education and business.

FlexPath students are required to pay a fixed-rate tuition fee for every 12-week session. They can enroll themselves into a maximum of two courses together. The DBA program will have an upper fee cap for deserving students.

With respect to this, Dr. Richard Senese, president, Capella University, said, “Our FlexPath format addresses many traditional education barriers, by helping make a degree affordable and accessible, and in this case, opens opportunities to an advanced degree for business students.”

Strong Enrollment at Capella University

Capella continuously invests in introducing new programs and specializations to improve student outcomes. Continuous innovation and course updates expand its product portfolio, which in turn boosts enrollments and drives long-term growth. One of these innovations is the FlexPath format. FlexPath continues to be one of the company’s fastest-growing programs as it allows students to focus on leveraging their skills and knowledge gained during professional hours.

For first-quarter 2021, FlexPath enrollment was 17% of U.S. Higher Education or USHE enrollment versus 12% in the same period of 2020. Capella University operates direct assessment courses within FlexPath programs. Owing to Capella University’s low-cost and highly innovative student programs, the company expects new enrollments to increase in the near term. Also, the company predicts to manage more than 250,000 total employees education benefits in 2021.

So far this year, shares of Strategic Education have declined 22.7% compared with the Zacks Schools industry’s 33.2% fall.


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Zacks Rank

Strategic Education— which shares space with Adtalem Global Education Inc. (ATGE - Free Report) , Afya Limited (AFYA - Free Report) and Bright Horizons Family Solutions Inc.(BFAM - Free Report) in the same industry— currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adtalem Global Education’s fiscal 2021 earnings are expected to grow 31.1% and Afya has an expected earnings growth rate of 60.7% for 2021. Also, Bright Horizons Family has an earnings growth rate of 45.8% for 2021.

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