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K12 (LRN) Stock Moves -0.18%: What You Should Know

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K12 (LRN - Free Report) closed the most recent trading day at $38.06, moving -0.18% from the previous trading session. This change was narrower than the S&P 500's 1.1% loss on the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the online education company had lost 13.91% in the past month. In that same time, the Consumer Discretionary sector lost 1.51%, while the S&P 500 lost 2.28%.

Wall Street will be looking for positivity from K12 as it approaches its next earnings report date. In that report, analysts expect K12 to post earnings of -$0.20 per share. This would mark a year-over-year decline of 33.33%. 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 $2.53 per share and revenue of $1.79 billion. These totals would mark changes of +0.4% and +6.32%, respectively, from last year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.18% lower. K12 is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note K12's current valuation metrics, including its Forward P/E ratio of 15.07. For comparison, its industry has an average Forward P/E of 16.13, which means K12 is trading at a discount to the group.

It is also worth noting that LRN currently has a PEG ratio of 0.75. 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 0.97 as of yesterday's close.

The Schools industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% 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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