Coronavirus COVID-19 "At Home" Opportunities

[JohnCM]

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online education stock coronavirus play

5 Stocks to Watch Out

Given the current scenario, it is prudent to keep a close watch on these five online education providers that are poised to grow.

Arco Platform Limited ARCE is a Zacks Rank #1 (Strong Buy) company that provides a pedagogical system with technology-enabled features to deliver educational content to private schools,students, teachers, administrators, and parents. The company’s expected earnings growth rate for the next year is more than 100%.

Instructure, Inc. INST provides applications for learning, assessment, and performance management through a software-as-a-service business model. This Zacks Rank #2 (Buy) company’s expected earnings growth rate for the next quarter is 12.5%.

Perdoceo Education Corporation PRDO provides education to students in various career-oriented disciplines through online, campus based, and blended learning programs. The company’s expected earnings growth rate for the current year is 5.8%. The company carries a Zacks Rank #3 (Hold).

Next, we haveChegg, Inc. CHGG, which operates a direct-to-student learning platform. It also allows students to find human help on its learning platform through a network of live tutors. This Zacks Rank #3 company’s expected earnings growth rate for the current quarter is 26.7%.

New Oriental Education & Technology Group Inc. EDU offers online education programs that include college, K-12, and pre-school education. The company’s expected earnings growth rate for the current quarter is 13%. New Oriental Education & Technology Group carries a Zacks Rank #3.

Schools and universities in the United States have undertaken steps to shut down their premises to maintain social distancing.

Currently, Strategic Education, Inc. STRA, Universal Technical Institute, Inc. UTI and Perdoceo Education Corporation PRDO are cashing in on the unprecedented surge in demand for online education these days.

This apart, classroom type education providing companies, and some e-learning companies like Chegg, Inc. CHGG, New Oriental Education & Technology Group Inc. EDU, Instructure, Inc. INST, Arco Platform Limited ARCE and K12 Inc. (LRN) are benefiting from the surge in online education demand. Among these school stocks, Strategic Education, Universal Technical, Instructure and Arco carry a Zacks Rank #2 (Buy), while Perdoceo, Chegg, New Oriental Education and K12 have a Zacks Rank #3 (Hold).