Our Second Edition of the Top Stock in Education Companies
In this article, we cover the top 3 education stocks to watch under $75. We can’t get enough of the education industry this quarter. The bargains are in abundance and worth taking a second look. If you’re looking for education companies trading at a lower price, click here for our previous article on bargain companies in the education industry trading under $12.
All companies were identified using the Simple Investing Success stock screener, which scans for companies meeting our simple criteria of cheap and good, using simple metrics for discount and valuation.
Top 3 Education Stocks under $75
Let’s take a closer look at each company.
Adtalem Global Edu. (ATGE)
- Earnings Yield: 19.15%
- 52-week range: $23.22 – $43.85
- Analyst Price target: $43.11
- Price/Free Cash Flow: 12.81
- Price/Sales: 1.84
- Price/Earnings: 26.73
Adtalem Global provides workforce solutions through two segments, Medical / Healthcare and Financial Services. The Medical and Healthcare segment offers degree and non-degree programs through Chamberlain University, American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.
The Financial Services segment focuses on test preparation, certifications, seminars, and subscriptions to business professionals in accounting, banking, and mortgage lending.
The company also operates Becker Professional Education, OnCourse Learning and EduPristine. Adtalem Global was incorporated in 1987 and is headquartered in Chicago, Illinois. The current CEO is Stephen Beard.
American Public Education (APEI)
- Earnings Yield: 18.90%
- 52-week range: $24.75 – $39.19
- Analyst Price target: $36.91
- Price/Free Cash Flow: 28.11
- Price/Sales: 1.24
- Price/Earnings: 22.80
American Public Education provides online and on-campus education. The company operates American Public Education and Hondros College of Nursing. It currently offers 129 degree programs and 112 certificate programs in a variety of fields.
The company also offers a diploma in practical nursing and associate degrees in nursing and medical lab technology. American Public Education was founded in 1991 and is headquartered in Charles Town, West Virginia. The current CEO is Angela Selden.
Strategic Education Inc. (STRA)
- Earnings Yield: 11.58%
- 52-week range: $68.58 – $101.29
- Analyst Price target: $83.52
- Price/Free Cash Flow: 32.74
- Price/Sales: 1.57
- Price/Earnings: 36.50
Strategic Education operates several for-profit universities, most notably Strayer University and Capella University.
Strayer University provides undergraduate and graduate degree programs for working adult students. Strayer offers traditional degree programs as well as software development, UX design and an engineering school for women. The university has 64 physical campuses and an online platform.
Capella University is an online post-secondary education institution that offers bachelor’s, master’s, and doctoral degree programs in public service leadership, nursing, psychology and business.
The company also operates Torrens University in Australia and Think Education in New Zealand. It was founded in 1892 and is headquartered in Herndon, Virginia. The current CEO is Karl McDonnell.
Be sure to add these picks to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.