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Grand Canyon Education, Inc. (LOPE) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Grand Canyon Education (LOPE - Free Report) ? Shares have been on the move with the stock up 11.1% over the past month. The stock hit a new 52-week high of $156.56 in the previous session. Grand Canyon Education has gained 11.4% since the start of the year compared to the -3% move for the Zacks Consumer Discretionary sector and the 9% return for the Zacks Schools industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2024, Grand Canyon Education reported EPS of $2.35 versus consensus estimate of $2.22.
For the current fiscal year, Grand Canyon Education is expected to post earnings of $7.80 per share on $1.03 billion in revenues. This represents a 10.8% change in EPS on a 6.98% change in revenues. For the next fiscal year, the company is expected to earn $8.60 per share on $1.1 billion in revenues. This represents a year-over-year change of 10.26% and 7%, respectively.
Valuation Metrics
Grand Canyon Education may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Grand Canyon Education has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.9X. On a trailing cash flow basis, the stock currently trades at 18.1X versus its peer group's average of 11.1X. Additionally, the stock has a PEG ratio of 1.26. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Grand Canyon Education meets the list of requirements. Thus, it seems as though Grand Canyon Education shares could still be poised for more gains ahead.
How Does LOPE Stack Up to the Competition?
Shares of LOPE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Lincoln Educational Services Corporation (LINC - Free Report) . LINC has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. Lincoln Educational Services Corporation beat our consensus estimate by 200%, and for the current fiscal year, LINC is expected to post earnings of $0.48 per share on revenue of $424.19 million.
Shares of Lincoln Educational Services Corporation have gained 27.7% over the past month, and currently trade at a forward P/E of 26.15X and a P/CF of 15.27X.
The Schools industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LOPE and LINC, even beyond their own solid fundamental situation.
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Grand Canyon Education, Inc. (LOPE) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Grand Canyon Education (LOPE - Free Report) ? Shares have been on the move with the stock up 11.1% over the past month. The stock hit a new 52-week high of $156.56 in the previous session. Grand Canyon Education has gained 11.4% since the start of the year compared to the -3% move for the Zacks Consumer Discretionary sector and the 9% return for the Zacks Schools industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2024, Grand Canyon Education reported EPS of $2.35 versus consensus estimate of $2.22.
For the current fiscal year, Grand Canyon Education is expected to post earnings of $7.80 per share on $1.03 billion in revenues. This represents a 10.8% change in EPS on a 6.98% change in revenues. For the next fiscal year, the company is expected to earn $8.60 per share on $1.1 billion in revenues. This represents a year-over-year change of 10.26% and 7%, respectively.
Valuation Metrics
Grand Canyon Education may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Grand Canyon Education has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.9X. On a trailing cash flow basis, the stock currently trades at 18.1X versus its peer group's average of 11.1X. Additionally, the stock has a PEG ratio of 1.26. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Grand Canyon Education meets the list of requirements. Thus, it seems as though Grand Canyon Education shares could still be poised for more gains ahead.
How Does LOPE Stack Up to the Competition?
Shares of LOPE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Lincoln Educational Services Corporation (LINC - Free Report) . LINC has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. Lincoln Educational Services Corporation beat our consensus estimate by 200%, and for the current fiscal year, LINC is expected to post earnings of $0.48 per share on revenue of $424.19 million.
Shares of Lincoln Educational Services Corporation have gained 27.7% over the past month, and currently trade at a forward P/E of 26.15X and a P/CF of 15.27X.
The Schools industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LOPE and LINC, even beyond their own solid fundamental situation.