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Earnings Estimates Moving Higher for Strategic Education (STRA): Time to Buy?
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Investors might want to bet on Strategic Education (STRA - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this for-profit education company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Strategic Education, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.76 per share, which is a change of +123.53% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for Strategic Education compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 70.04%.
Current-Year Estimate Revisions
The company is expected to earn $4.54 per share for the full year, which represents a change of +45.98% from the prior-year number.
The revisions trend for the current year also appears quite promising for Strategic Education, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.33%.
Favorable Zacks Rank
The promising estimate revisions have helped Strategic Education earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Strategic Education have attracted decent investments and pushed the stock 8.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Earnings Estimates Moving Higher for Strategic Education (STRA): Time to Buy?
Investors might want to bet on Strategic Education (STRA - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this for-profit education company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Strategic Education, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.76 per share, which is a change of +123.53% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for Strategic Education compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 70.04%.
Current-Year Estimate Revisions
The company is expected to earn $4.54 per share for the full year, which represents a change of +45.98% from the prior-year number.
The revisions trend for the current year also appears quite promising for Strategic Education, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.33%.
Favorable Zacks Rank
The promising estimate revisions have helped Strategic Education earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Strategic Education have attracted decent investments and pushed the stock 8.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.