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K12 (LRN) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, K12 (LRN - Free Report) closed at $44.29, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today's trading, shares of the online education company had gained 8.13% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.98% and lagged the S&P 500's gain of 8.35% in that time.
Investors will be hoping for strength from K12 as it approaches its next earnings release, which is expected to be August 9, 2022. On that day, K12 is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 152%. Our most recent consensus estimate is calling for quarterly revenue of $422.24 million, up 6.22% from the year-ago period.
Any recent changes to analyst estimates for K12 should also be noted by investors. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, K12 is currently trading at a Forward P/E ratio of 16.57. For comparison, its industry has an average Forward P/E of 16.2, which means K12 is trading at a premium to the group.
It is also worth noting that LRN currently has a PEG ratio of 0.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Schools stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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K12 (LRN) Dips More Than Broader Markets: What You Should Know
In the latest trading session, K12 (LRN - Free Report) closed at $44.29, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today's trading, shares of the online education company had gained 8.13% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.98% and lagged the S&P 500's gain of 8.35% in that time.
Investors will be hoping for strength from K12 as it approaches its next earnings release, which is expected to be August 9, 2022. On that day, K12 is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 152%. Our most recent consensus estimate is calling for quarterly revenue of $422.24 million, up 6.22% from the year-ago period.
Any recent changes to analyst estimates for K12 should also be noted by investors. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. K12 is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, K12 is currently trading at a Forward P/E ratio of 16.57. For comparison, its industry has an average Forward P/E of 16.2, which means K12 is trading at a premium to the group.
It is also worth noting that LRN currently has a PEG ratio of 0.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Schools stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Schools industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.