As the market indexes try to rally, online learning leader Stride (LRN) has graduated into a buy zone. LRN stock is on pace to notch its 10th straight up week.
XBoosted by 164% earnings growth last quarter, Stride earns placement on the IBD Breakout Stocks Index, which is updated weekly.
Showing demand among large investors, the Virginia-based company has also grabbed a spot on the latest list of new buys by the best mutual funds. Stride joins Adtalem Global Education (ATGE) and Afya (AFYA) on this exclusive stock screen.
Stride sports a 97 Composite Rating and has delivered average annual EPS gains of 48% over the last three years. Analysts expect earnings to rise just 13% when Stride reports fiscal Q1 2023 numbers on Oct. 25 and also forecast a 4% full-year slowdown.
But Wall Street sees Stride rebounding to a healthy 22% EPS increase in fiscal 2024.
See All The Names On The IBD Breakout Stocks Index
Stride Drives Online Learning From K-12 To Adults
Formerly known as K12, Stride changed its name in 2020. In addition to K-12 programs and curriculums, Stride offers one-on-one tutoring and career development, which provides training across three core areas: MedCerts, Tech Elevator and Galvanize.
MedCerts helps adults develop careers with in-demand training in health care and IT. Tech Elevator provides a coding boot camp for future software developers. And Galvanize empowers learners and leaders pursuing skills as software engineers and more.
Stride Among Top Online Learning Stocks To Watch
While fellow online learning peer Adtalem sets up a potential new breakout, Stride has already strolled right into a buy zone.
Rising sharply off its August low, LRN stock cleared a 45.03 buy point earlier this month. The buy zone extends to 47.23.
Showing market leadership, Stride's relative strength line has soared since August, putting it just shy of a new high.
Despite those positive metrics, weekly volume has been below average. So look for heavier trade to further confirm demand for a fresh run.
While the market tries to establish a new uptrend, keep in mind that Stride is on deck to report earnings Oct. 25, adding an element of risk and uncertainty for investors sitting on small gains.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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The post Online Learning Stock With 164% Growth Audits Buy Zone appeared first on Investor's Business Daily.
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