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Stride (LRN) Partners with APUS to Provide Affordable Education

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Stride, Inc. (LRN - Free Report) collaborates with the American Public University System (APUS), a subsidiary institution of American Public Education, Inc. (APEI - Free Report) , to provide a more affordable path to higher education. LRN aims to ease the financial burden on recent graduates from K12-powered schools amid the nation's staggering $1.7-trillion student debt crisis.

Through this partnership, all LRN graduates are eligible for a 10% tuition grant at APUS, reducing undergraduate credit hour costs to just $315. Stride graduates, faculty and staff can utilize these grants at American Public University (APU) to pursue bachelor’s and master’s degrees. APU operates under APUS, which holds accreditation from the Higher Learning Commission, a recognized institutional accreditation agency by the U.S. Department of Education.

The company is optimistic about its partnership with American Public University. LRN believes this collaboration will help graduates access various post-secondary education options without financial concerns as they pursue their career paths.

Price Performance

This education company’s shares have surged 38.7% in the past six months compared with the Zacks Schools industry’s 28.6% growth. The company's thriving career learning segment supported the uptrend through various growth initiatives.

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In second-quarter fiscal 2024, its revenues rose 10.1% year over year, driven by General Education and Career Learning enrollment strength. Adjusted EBITDA of $118.3 million grew 17.8% year over year. Enrollment also increased 9% in the fiscal second quarter, backed by growth across both segments. General Education enrollment moved up 9% and Career Learning enrollment rose by 8.9%.

For the fiscal 2024, revenues are expected to range within $1.99-$2.04 billion versus $1.84 billion reported a year ago. Adjusted operating income is likely to range between $265 million and $285 million, up from $201 million reported in the previous year.

Zacks Rank & Other Key Picks

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

Here are some other top-ranked stocks from the Zacks Consumer Discretionary sector:

Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1. RCL has a trailing four-quarter earnings surprise of 26.4% on average. Shares of RCL have surged 104% in the past year.

The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) indicates a rise of 14.7% and 47.9%, respectively, from the year-ago  levels. Group Limited (TCOM - Free Report) currently flaunts a Zacks Rank #1. TCOM has a trailing four-quarter earnings surprise of 53.1%, on average. Shares of TCOM have gained 19.8% in the past year.

The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 17.1% and 23.7%, respectively, from the year-ago levels.

Hyatt Hotels Corporation (H - Free Report) carries a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.8% on average. Shares of H have increased 42.3% in the past year.

The Zacks Consensus Estimate for H’s 2024 sales and EPS indicates a rise of 3.4% and 29.3%, respectively, from the year-ago levels.

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