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K12 (LRN) Stock Sinks As Market Gains: What You Should Know

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K12 (LRN - Free Report) closed the most recent trading day at $35.52, moving -0.95% from the previous trading session. This change lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.07%.

Heading into today, shares of the online education company had lost 16.22% over the past month, lagging the Consumer Discretionary sector's loss of 0.23% and the S&P 500's gain of 4.36% in that time.

Wall Street will be looking for positivity from K12 as it approaches its next earnings report date. On that day, K12 is projected to report earnings of -$0.19 per share, which would represent a year-over-year decline of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $419.03 million, up 4.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.52 per share and revenue of $1.79 billion. These totals would mark changes of 0% and +6.32%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for K12. These revisions help to show the ever-changing nature of near-term business trends. 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. The Zacks Consensus EPS estimate has moved 6.55% lower within the past month. K12 currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that K12 has a Forward P/E ratio of 14.23 right now. This represents a discount compared to its industry's average Forward P/E of 16.25.

Meanwhile, LRN's PEG ratio is currently 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LRN's industry had an average PEG ratio of 0.99 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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