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K12 (LRN) Outpaces Stock Market Gains: What You Should Know
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K12 (LRN - Free Report) closed the most recent trading day at $33.62, moving +1.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the online education company had lost 7.31% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.81% and the S&P 500's gain of 0.39% in that time.
K12 will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.77, up 28.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $395.35 million, up 5.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.05 per share and revenue of $1.58 billion. These totals would mark changes of +19.88% and +2.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for K12. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. K12 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, K12 is holding a Forward P/E ratio of 16.06. This valuation marks a discount compared to its industry's average Forward P/E of 17.1.
Meanwhile, LRN's PEG ratio is currently 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Schools was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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K12 (LRN) Outpaces Stock Market Gains: What You Should Know
K12 (LRN - Free Report) closed the most recent trading day at $33.62, moving +1.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the online education company had lost 7.31% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.81% and the S&P 500's gain of 0.39% in that time.
K12 will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.77, up 28.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $395.35 million, up 5.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.05 per share and revenue of $1.58 billion. These totals would mark changes of +19.88% and +2.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for K12. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. K12 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, K12 is holding a Forward P/E ratio of 16.06. This valuation marks a discount compared to its industry's average Forward P/E of 17.1.
Meanwhile, LRN's PEG ratio is currently 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Schools was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.