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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education or SEI, is an education services company that provides campus-based and online post-secondary education, along with programs designed to build job-ready skills for high-demand markets. Its higher education institutions are Capella University and Strayer University in the United States and Torrens University in Australia. The company primarily serves working adult students.
STRA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. STRA has a Momentum Style Score of B, and shares are up 0.2% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $7.23 per share. STRA boasts an average earnings surprise of +9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, STRA should be on investors' short list.
Corient Private Wealth LP acquired a new position in shares of Strategic Education Inc. (NASDAQ:STRA – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 6,406 shares of the health services provider’s stock, valued at approximately $491,000.
A number of other hedge funds and other institutional investors also recently made changes to their positions in STRA. Orion Porfolio Solutions LLC raised its stake in Strategic Education by 1.4% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 9,367 shares of the health services provider’s stock valued at $806,000 after acquiring an additional 129 shares during the period. ProShare Advisors LLC lifted its holdings in Strategic Education by 3.0% during the 4th quarter. ProShare Advisors LLC now owns 4,538 shares of the health services provider’s stock valued at $364,000 after purchasing an additional 133 shares during the last quarter. Allworth Financial LP boosted its position in Strategic Education by 88.5% during the third quarter. Allworth Financial LP now owns 294 shares of the health services provider’s stock worth $25,000 after purchasing an additional 138 shares during the period. Osaic Holdings Inc. increased its holdings in shares of Strategic Education by 85.2% in the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider’s stock valued at $33,000 after purchasing an additional 178 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in shares of Strategic Education by 154.2% in the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider’s stock valued at $27,000 after purchasing an additional 202 shares during the last quarter. 93.27% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades A number of analysts have recently issued reports on STRA shares. Barrington Research set a $105.00 target price on shares of Strategic Education in a research note on Wednesday, July 29th. BMO Capital Markets upped their price target on shares of Strategic Education from $86.00 to $91.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Truist Financial increased their price target on shares of Strategic Education from $80.00 to $90.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Zacks Research downgraded shares of Strategic Education from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 2nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Strategic Education in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $95.33.
View Our Latest Research Report on STRA Strategic Education Stock Performance STRA opened at $81.59 on Tuesday. Strategic Education Inc. has a fifty-two week low of $69.70 and a fifty-two week high of $89.73. The company has a market capitalization of $1.81 billion, a P/E ratio of 13.60, a P/E/G ratio of 0.75 and a beta of 0.49. The stock has a fifty day moving average of $81.58 and a 200-day moving average of $80.32.
Strategic Education (NASDAQ:STRA – Get Free Report) last announced its earnings results on Wednesday, July 29th. The health services provider reported $1.76 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.80 by ($0.04). Strategic Education had a net margin of 10.46% and a return on equity of 8.98%. The business had revenue of $321.60 million during the quarter, compared to the consensus estimate of $327.55 million. During the same period in the previous year, the firm posted $1.54 EPS. The company’s revenue was up 4.9% compared to the same quarter last year. On average, equities research analysts predict that Strategic Education Inc. will post 7.23 earnings per share for the current fiscal year.
Strategic Education Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Friday, September 4th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.40 dividend on an annualized basis and a yield of 2.9%. Strategic Education’s payout ratio is currently 40.00%.
Strategic Education Company Profile (Free Report)
Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
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Strategic Education Inc. (STRA - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, STRA's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Over the past four weeks, STRA has gained 5.7%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
The bullish case solidifies once investors consider STRA's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 2 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Investors should think about putting STRAon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
A month has gone by since the last earnings report for Strategic Education (STRA - Free Report) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Strategic Education due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Strategic Education Inc. before we dive into how investors and analysts have reacted as of late.
STRA Q2 Earnings Miss on ANZ Reserve, Revenues Beat on ETS GrowthStrategic Education reported mixed second-quarter 2026 results. Adjusted earnings of $1.76 per share missed the Zacks Consensus Estimate of $1.79 by 1.7% but increased 15.8% year over year.
Revenues of $337.3 million topped the consensus mark of $327 million by 3.1% and rose 4.9% year over year, driven by Education Technology Services strength, higher U.S. Higher Education revenue per student and favorable currency. Employer-affiliated enrollment reached an all-time high of 34.7% of USHE enrollment.
Strategic Education's USHE TrendsU.S. Higher Education revenues increased 2.3% year over year to $220.5 million, driven by higher revenue per student. Enrollment slipped 0.5% to 85,894 students from 86,339 in the prior-year quarter.
USHE's healthcare portfolio enrollment increased 11% and accounted for 52% of segment enrollment, up from 47%. FlexPath enrollment was 25% of USHE enrollment compared with 23% a year earlier, while segment operating income increased to $32.4 million from $20.8 million. Healthcare programs accounted for 73% of FlexPath enrollment. During the quarter, Capella University launched a Bachelor of Science in Nursing (Prelicensure) program for July 2026 enrollment.
STRA's ETS Momentum Remains StrongEducation Technology Services revenues climbed 15.4% to $42.4 million, supported by growth in Sophia Learning subscriptions, higher employer-affiliated enrollment and increased Workforce Edge revenues from employer partnerships. Sophia Learning revenues jumped 26.7% to $20.7 million.
ETS operating income increased 30.2% to $19.6 million, while the operating margin improved to 46.2% from 41%. Workforce Edge ended the quarter with 81 corporate agreements covering approximately 4.02 million employees.
Strategic Education's ANZ Results WeakenAustralia/New Zealand revenues increased 7.6% to $74.4 million, aided by favorable foreign exchange and higher revenue per student. On a constant-currency basis, revenues declined 2.6% to $67.4 million as enrollment fell 5.2% to 17,555 amid lower international enrollment, partly offset by growing domestic enrollment.
ANZ operating income dropped to $1 million from $12.8 million, and the operating margin contracted to 1.3% from 18.4%. Results included a $13.9 million reserve tied to the Australian Fair Work Ombudsman compliance matter and higher instructional and technology-related costs.
STRA's Cost and Margin PictureInstructional and support costs increased to $177.9 million from $166.2 million and represented 52.7% of revenues, up from 51.7%. General and administration (G&A) expenses edged down to $106.4 million from $106.8 million and improved to 31.6% of revenues from 33.2%. The G&A decline reflected lower international agent commissions, personnel-related costs and facility expenses, partly offset by unfavorable currency and higher branding investments.
Adjusted income from operations increased 9.1% year over year to $52.9 million. The adjusted operating margin expanded 60 basis points to 15.7%, reflecting stronger consolidated profitability despite pressure in the Australia/New Zealand business.
Strategic Education's Financial DetailsAs of June 30, 2026, Strategic Education had $133.8 million in cash, cash equivalents and marketable securities, compared with $153.1 million at 2025-end, and no debt outstanding under its revolving credit facility. Cash provided by operating activities for the first six months increased to $116.6 million from $98.9 million.
Capital expenditures were $24.2 million compared with $21.2 million a year earlier, while free cash flow increased to $92.4 million from $77.7 million. During the quarter, STRA repurchased 420,624 shares for $32.8 million. The company had $140.7 million remaining under its repurchase authorization through Dec. 31, 2026, and declared a quarterly cash dividend of 60 cents per share. The dividend is payable Sept. 14 to shareholders of record as of Sept. 4.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Strategic Education has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Strategic Education has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Strategic Education Inc. (NASDAQ:STRA – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 21,922 shares of the health services provider’s stock, valued at approximately $1,680,000. Connor Clark & Lunn Investment Management Ltd. owned 0.10% of Strategic Education as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Allworth Financial LP grew its position in Strategic Education by 88.5% during the third quarter. Allworth Financial LP now owns 294 shares of the health services provider’s stock worth $25,000 after buying an additional 138 shares in the last quarter. Axiom Investment Management LLC acquired a new position in Strategic Education in the first quarter valued at about $25,000. Hantz Financial Services Inc. raised its stake in Strategic Education by 154.2% in the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider’s stock valued at $27,000 after purchasing an additional 202 shares in the last quarter. Osaic Holdings Inc. lifted its position in Strategic Education by 85.2% during the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider’s stock worth $33,000 after purchasing an additional 178 shares during the period. Finally, Sankala Group LLC acquired a new stake in Strategic Education during the fourth quarter worth about $37,000. Institutional investors and hedge funds own 93.27% of the company’s stock.
Analysts Set New Price Targets Several brokerages have recently commented on STRA. Truist Financial boosted their target price on shares of Strategic Education from $80.00 to $90.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. BMO Capital Markets increased their price target on shares of Strategic Education from $86.00 to $91.00 and gave the stock an “outperform” rating in a research report on Monday, July 6th. Wall Street Zen raised shares of Strategic Education from a “hold” rating to a “buy” rating in a research note on Saturday, August 1st. Zacks Research downgraded shares of Strategic Education from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 2nd. Finally, Barrington Research set a $105.00 target price on Strategic Education in a research note on Wednesday, July 29th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Strategic Education currently has an average rating of “Hold” and a consensus price target of $95.33.
Get Our Latest Report on STRA Strategic Education Trading Down 1.1% STRA stock opened at $84.64 on Friday. The stock has a market capitalization of $1.88 billion, a P/E ratio of 14.11, a price-to-earnings-growth ratio of 0.78 and a beta of 0.49. Strategic Education Inc. has a 12 month low of $69.70 and a 12 month high of $89.73. The firm has a 50-day moving average price of $80.97 and a 200-day moving average price of $80.07.
Strategic Education (NASDAQ:STRA – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The health services provider reported $1.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.80 by ($0.04). Strategic Education had a net margin of 10.46% and a return on equity of 8.98%. The company had revenue of $321.60 million for the quarter, compared to the consensus estimate of $327.55 million. During the same period last year, the firm posted $1.54 earnings per share. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. As a group, equities analysts predict that Strategic Education Inc. will post 7.23 EPS for the current fiscal year.
Strategic Education Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.60 per share. The ex-dividend date is Friday, September 4th. This represents a $2.40 annualized dividend and a dividend yield of 2.8%. Strategic Education’s dividend payout ratio is 40.00%.
Insider Buying and Selling at Strategic Education In related news, insider Christa Hokenson sold 2,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $80.00, for a total transaction of $160,000.00. Following the sale, the insider owned 65,195 shares in the company, valued at $5,215,600. The trade was a 2.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is currently owned by company insiders.
(Free Report)
Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education or SEI, is an education services company that provides campus-based and online post-secondary education, along with programs designed to build job-ready skills for high-demand markets. Its higher education institutions are Capella University and Strayer University in the United States and Torrens University in Australia. The company primarily serves working adult students.
STRA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Discretionary stock. STRA has a Momentum Style Score of B, and shares are up 9.8% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $7.23 per share. STRA also boasts an average earnings surprise of +9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, STRA should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education or SEI, is an education services company that provides campus-based and online post-secondary education, along with programs designed to build job-ready skills for high-demand markets. Its higher education institutions are Capella University and Strayer University in the United States and Torrens University in Australia. The company primarily serves working adult students.
STRA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.45; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $7.23 per share. STRA also boasts an average earnings surprise of +9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, STRA should be on investors' short list.
HERNDON, Va.--(BUSINESS WIRE)--Strategic Education, Inc. issues a call for applications for the second cohort of Strategic Education, Inc. Signal Labs.
First Trust Advisors LP increased its stake in Strategic Education Inc. (NASDAQ: STRA) by 23.0% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 42,492 shares of the health services provider's stock after buying an additional 7,946 shares during
On July 31, 2026, Strategic Education Inc (STRA) shares fell 3.6% today, currently trading at $81.88. The stock has experienced a 52-week range between $69.70 a
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education, Inc. or SEI, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses.
STRA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.8; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $7.21 per share. STRA boasts an average earnings surprise of +9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, STRA should be on investors' short list.
Bank of New York Mellon Corp cut its stake in shares of Strategic Education Inc. (NASDAQ:STRA – Free Report) by 3.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 223,320 shares of the health services provider’s stock after selling 7,011 shares during the quarter. Bank of New York Mellon Corp owned about 0.99% of Strategic Education worth $18,527,000 as of its most recent SEC filing.
Other hedge funds have also recently made changes to their positions in the company. Bank of Montreal Can grew its stake in Strategic Education by 62,355.4% during the 4th quarter. Bank of Montreal Can now owns 1,467,702 shares of the health services provider’s stock valued at $117,710,000 after purchasing an additional 1,465,352 shares during the last quarter. State Street Corp raised its stake in shares of Strategic Education by 0.8% in the fourth quarter. State Street Corp now owns 881,089 shares of the health services provider’s stock worth $70,663,000 after purchasing an additional 6,737 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Strategic Education by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 609,040 shares of the health services provider’s stock worth $48,853,000 after purchasing an additional 1,579 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Strategic Education by 3.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 351,969 shares of the health services provider’s stock worth $28,228,000 after purchasing an additional 12,244 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Strategic Education by 27.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 332,767 shares of the health services provider’s stock worth $28,621,000 after purchasing an additional 70,732 shares during the period. 93.27% of the stock is owned by institutional investors and hedge funds.
Insider Activity In related news, insider Christa Hokenson sold 2,000 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $80.00, for a total transaction of $160,000.00. Following the sale, the insider directly owned 65,195 shares of the company’s stock, valued at approximately $5,215,600. This represents a 2.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is currently owned by corporate insiders.
Strategic Education Trading Up 7.7% Shares of STRA stock opened at $87.62 on Thursday. The stock has a 50 day moving average of $78.81 and a 200 day moving average of $80.15. The stock has a market cap of $1.98 billion, a P/E ratio of 15.48, a P/E/G ratio of 0.75 and a beta of 0.50. Strategic Education Inc. has a twelve month low of $69.70 and a twelve month high of $87.86.
Strategic Education (NASDAQ:STRA – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The health services provider reported $1.76 EPS for the quarter, missing the consensus estimate of $1.80 by ($0.04). Strategic Education had a return on equity of 8.78% and a net margin of 10.21%.The company had revenue of $321.60 million during the quarter, compared to analysts’ expectations of $327.55 million. During the same quarter in the prior year, the company posted $1.54 EPS. The company’s revenue for the quarter was up 4.9% on a year-over-year basis. On average, research analysts predict that Strategic Education Inc. will post 7.2 earnings per share for the current fiscal year.
Strategic Education Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Friday, September 4th will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, September 4th. Strategic Education’s payout ratio is currently 42.40%.
Analyst Ratings Changes Several equities analysts recently weighed in on STRA shares. Barrington Research set a $105.00 price target on shares of Strategic Education in a report on Wednesday. BMO Capital Markets lifted their price objective on shares of Strategic Education from $86.00 to $91.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Wall Street Zen cut shares of Strategic Education from a “buy” rating to a “hold” rating in a research note on Wednesday, June 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategic Education in a report on Friday, July 17th. Finally, Truist Financial cut their price objective on shares of Strategic Education from $85.00 to $80.00 and set a “hold” rating on the stock in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Strategic Education presently has a consensus rating of “Hold” and a consensus price target of $92.00.
Get Our Latest Stock Report on Strategic Education
Key Stories Impacting Strategic Education Here are the key news stories impacting Strategic Education this week:
Positive Sentiment: Strategic Education reported second-quarter revenue of $337.3 million, up 4.9% year over year. Growth was driven by the Education Technology Services segment, higher U.S. higher-education revenue per student and favorable foreign-exchange effects. Strategic Education Reports Second Quarter 2026 Results Positive Sentiment: Quarterly earnings rose to $1.76 per share from $1.54 a year earlier, while the board declared a $0.60-per-share quarterly dividend, equivalent to $2.40 annually and an indicated yield of approximately 2.7%. The dividend is payable September 14 to shareholders of record September 4. Strategic Education Dividend and Earnings Information Neutral Sentiment: The second-quarter earnings call focused on the company’s operating performance and segment-level growth, providing investors with additional context on the results and outlook. Strategic Education Q2 2026 Earnings Call Transcript Negative Sentiment: Adjusted earnings of $1.76 per share fell short of analyst estimates near $1.79-$1.80, and some reports cited revenue below consensus expectations. The earnings miss may limit upside despite the year-over-year improvement. Strategic Education Q2 Earnings Lag Estimates About Strategic Education (Free Report)
Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
See Also Five stocks we like better than Strategic Education Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock
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Strategic Education Inc. (NASDAQ:STRA – Get Free Report) reached a new 52-week high during mid-day trading on Thursday following a dividend announcement from the company. The company traded as high as $87.86 and last traded at $87.62, with a volume of 724567 shares trading hands. The stock had previously closed at $81.39.
The newly announced dividend which will be paid on Monday, September 14th. Shareholders of record on Friday, September 4th will be paid a dividend of $0.60 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.40 dividend on an annualized basis and a yield of 2.7%. Strategic Education’s payout ratio is 42.40%.
Analysts Set New Price Targets Several research firms have weighed in on STRA. Barrington Research set a $105.00 target price on shares of Strategic Education in a report on Wednesday. Zacks Research downgraded shares of Strategic Education from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 2nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategic Education in a research report on Friday, July 17th. BMO Capital Markets upped their price objective on Strategic Education from $86.00 to $91.00 and gave the company an “outperform” rating in a report on Monday, July 6th. Finally, Wall Street Zen lowered Strategic Education from a “buy” rating to a “hold” rating in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Strategic Education presently has an average rating of “Hold” and a consensus price target of $92.00.
View Our Latest Stock Report on STRA
Strategic Education Price Performance The stock has a 50 day moving average price of $78.81 and a two-hundred day moving average price of $80.15. The firm has a market capitalization of $1.98 billion, a price-to-earnings ratio of 15.48, a PEG ratio of 0.75 and a beta of 0.50.
Strategic Education (NASDAQ:STRA – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The health services provider reported $1.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.80 by ($0.04). Strategic Education had a net margin of 10.21% and a return on equity of 8.78%. The firm had revenue of $321.60 million during the quarter, compared to analysts’ expectations of $327.55 million. During the same quarter in the prior year, the firm posted $1.54 EPS. Strategic Education’s quarterly revenue was up 4.9% compared to the same quarter last year. As a group, research analysts expect that Strategic Education Inc. will post 7.2 earnings per share for the current fiscal year.
Key Stories Impacting Strategic Education Here are the key news stories impacting Strategic Education this week:
Positive Sentiment: Strategic Education reported second-quarter revenue of $337.3 million, up 4.9% year over year. Growth was driven by the Education Technology Services segment, higher U.S. higher-education revenue per student and favorable foreign-exchange effects. Strategic Education Reports Second Quarter 2026 Results Positive Sentiment: Quarterly earnings rose to $1.76 per share from $1.54 a year earlier, while the board declared a $0.60-per-share quarterly dividend, equivalent to $2.40 annually and an indicated yield of approximately 2.7%. The dividend is payable September 14 to shareholders of record September 4. Strategic Education Dividend and Earnings Information Neutral Sentiment: The second-quarter earnings call focused on the company’s operating performance and segment-level growth, providing investors with additional context on the results and outlook. Strategic Education Q2 2026 Earnings Call Transcript Negative Sentiment: Adjusted earnings of $1.76 per share fell short of analyst estimates near $1.79-$1.80, and some reports cited revenue below consensus expectations. The earnings miss may limit upside despite the year-over-year improvement. Strategic Education Q2 Earnings Lag Estimates Insider Transactions at Strategic Education In other Strategic Education news, insider Christa Hokenson sold 2,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $80.00, for a total transaction of $160,000.00. Following the sale, the insider directly owned 65,195 shares in the company, valued at $5,215,600. This represents a 2.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is owned by company insiders.
Hedge Funds Weigh In On Strategic Education Institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of Montreal Can increased its position in shares of Strategic Education by 62,355.4% in the 4th quarter. Bank of Montreal Can now owns 1,467,702 shares of the health services provider’s stock valued at $117,710,000 after purchasing an additional 1,465,352 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of Strategic Education by 188.6% during the 2nd quarter. AQR Capital Management LLC now owns 245,296 shares of the health services provider’s stock worth $20,882,000 after purchasing an additional 160,303 shares during the last quarter. Millennium Management LLC grew its stake in shares of Strategic Education by 115.4% during the third quarter. Millennium Management LLC now owns 216,117 shares of the health services provider’s stock worth $18,588,000 after purchasing an additional 115,801 shares in the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of Strategic Education during the second quarter worth $9,615,000. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Strategic Education by 30.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 454,509 shares of the health services provider’s stock valued at $37,706,000 after buying an additional 106,487 shares during the last quarter. 93.27% of the stock is owned by institutional investors and hedge funds.
About Strategic Education (Get Free Report)
Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
Further Reading Five stocks we like better than Strategic Education Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock Receive News & Ratings for Strategic Education Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Strategic Education and related companies with MarketBeat.com's FREE daily email newsletter.
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3 Education Stocks to Enroll in This SummerStrategic Education NASDAQ: STRA reported second-quarter results marked by growth in its Education Technology Services business, improved profitability in U.S. higher education and continued efforts to return its Australia and New Zealand operations to growth, executives said during the company’s earnings call.
President and Chief Executive Officer Karl McDonnell said second-quarter revenue increased approximately 3% from the prior year to $330 million on a constant-currency basis. Operating expenses rose about 1.5%, including a $13 million one-time charge tied to a labor matter in Australia. Excluding that charge, operating expenses would have declined 3% year over year to $265 million, according to McDonnell.
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3 Education Stocks To Stuff Your Stocking WithOperating income was $53 million, up 9% from the prior-year period, while operating margin improved 90 basis points to 16%. Excluding the Australia-related charge, operating income would have increased 35% and operating margin would have been 20%, McDonnell said. Adjusted earnings per share rose 16% to $1.76, while year-to-date cash flow from operations increased 18% to $117 million.
Education Technology Services Growth The company’s Education Technology Services, or ETS, division reported revenue growth of 15% to $42 million and a 30% increase in operating income to $20 million. The segment’s operating margin expanded 520 basis points to 46.2%.
Sophia Learning’s average subscriber base grew 32%, while revenue increased 27% to $21 million. McDonnell said the business is continuing to grow strongly despite reaching a larger revenue base.
During the question-and-answer session, McDonnell addressed concerns about the use of artificial intelligence in online coursework. He said Strategic Education takes academic integrity and assessment quality seriously across its portfolio and that Sophia’s management team had already been developing enhancements to its academic-integrity controls before recent media coverage on the subject.
“That’s something that we will continue to focus on,” McDonnell said, adding that academic-integrity enhancements would remain an investment priority for Sophia through the balance of 2026 and into 2027.
Workforce Edge ended the quarter with 81 corporate agreements covering 4 million employees. Enrollments from Workforce Edge into Strayer University or Capella University increased 21% to roughly 4,000 students. McDonnell said ETS now accounts for nearly 40% of Strategic Education’s consolidated income from operations.
U.S. Higher Education Margin Improvement In U.S. higher education, employer-affiliated enrollment rose 8% and reached an all-time high of 35% of total enrollment, an increase of nearly 300 basis points from the previous year. Healthcare enrollment increased 11% and represented 52% of U.S. higher education enrollment.
Capella University launched a pre-licensure Bachelor of Science in Nursing program during the second quarter, enrolling its first cohort in July, McDonnell said.
U.S. higher education revenue increased 2%, supported by higher revenue per student as well as lower scholarships and discounts. Executive Vice President and Chief Financial Officer Daniel Jackson said revenue per student also benefited from students taking more classes, though he noted that both course load and scholarship levels can vary by quarter. For the full year, the company continues to expect approximately flat revenue per student.
Operating expenses in the segment declined 3%, which management attributed to productivity initiatives. Operating income rose 56% to $32 million, and the segment’s operating margin increased to 15% from 10% in the prior-year quarter. Student retention reached an all-time high of 89%.
McDonnell said the company’s overall demand environment was “stable to pretty good,” with student acquisition rates flat to down. He said Strategic Education has not identified large language model searches as a material issue affecting student inquiries, though its marketing teams are working to ensure Strayer and Capella are favorably represented in such searches.
The company’s marketing emphasis remains focused on employer partnerships and healthcare. McDonnell said unaffiliated enrollment on the Strayer side has not been a marketing priority, while non-healthcare enrollment growth is not currently a central part of the company’s marketing strategy.
Australia Labor Matter and Enrollment Trends In Australia and New Zealand, total enrollment declined 5% and revenue fell just under 3% to $67 million. The segment reported operating income of $1 million after the $13 million reserve related to an ongoing labor matter involving casual faculty at Torrens University Australia.
The matter concerns whether grading time should be included within casual faculty teaching contracts or paid separately. McDonnell said an Australian court initially ruled in the company’s favor, but an appeals court later determined that grading time should be separately compensated. Strategic Education has appealed to the High Court of Australia and established the reserve in the event the appeal is not heard or the appellate ruling is upheld.
McDonnell said the company has already modified its instructional model and does not expect the change to increase instructional expense. Management expects to learn whether the High Court will take the case in September or early October.
Domestic new-student growth in Australia has approached double digits, McDonnell said, but has not yet offset international enrollment declines. He cited challenges in the onshore transfer market and slower Australian visa processing, even in markets the government considers to have a high concentration of genuine students.
The company reached its enrollment cap in Australia last year, and the cap was subsequently raised by about 3%, McDonnell said. He added that Strategic Education could benefit if visa approvals accelerate during the second half, as they did last year. Management expects the Australia business to return to growth in the first part of 2027 if domestic enrollment momentum continues.
Capital Allocation and Outlook Strategic Education repurchased approximately 421,000 shares for $33 million during the quarter in addition to paying its regular quarterly dividend. The company had about $141 million remaining under its share repurchase authorization through year-end.
McDonnell said the company may fall somewhat below its longer-term notional revenue-growth model for 2026, primarily because of Australia. However, he said he was “more than confident” that the company would exceed the model’s target of 200 basis points of EBIT margin expansion, potentially even including the Australia labor charge.
Looking further ahead, McDonnell said he expects revenue growth to revert toward the company’s approximately 5% long-term model over the period between the second half of 2026 and the following year.
About Strategic Education (NASDAQ:STRA)Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Strategic Education, Inc. (STRA) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Terese Wilke - Director of Investor Relations
Karl McDonnell - President, CEO & Director
Daniel Jackson - Executive VP, CFO & Chief Administrative Officer
Conference Call Participants
Jeffrey Silber - BMO Capital Markets Equity Research
Alexander Paris - Barrington Research Associates, Inc., Research Division
Jasper Bibb - Truist Securities, Inc., Research Division
Presentation
Operator
Welcome to Strategic Education's Second Quarter 2026 Results Conference Call.
I will now turn the call over to Terese Wilke, Senior Director of Investor Relations for Strategic Education. Ms. Wilke, please go ahead.
Terese Wilke
Director of Investor Relations
Thank you. Hello, everyone, and welcome to Strategic Education's conference call in which we will discuss second quarter 2026 results. With us today are Karl McDonnell, President and Chief Executive Officer; and Daniel Jackson, Executive Vice President and Chief Financial Officer. Following today's remarks, we will open the call for questions.
Please note that this call may include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements are based on current expectations and are subject to a number of assumptions, uncertainties and risks that Strategic Education has identified in today's press release that could cause actual results to differ materially.
Further information about these and other relevant uncertainties may be found in Strategic Education's most recent annual report on Form 10-K, the 10-Q to be filed and other filings with the Securities and Exchange Commission as well as Strategic Education's future 8-Ks, 10-Qs and 10-Ks. Copies of these filings and the full press release are available for viewing on our website at strategiceducation.com.
And now I'd like to turn the call over to Karl. Karl, please go ahead.
Strategic Education (STRA - Free Report) came out with quarterly earnings of $1.76 per share, missing the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.68%. A quarter ago, it was expected that this for-profit education company would post earnings of $1.51 per share when it actually produced earnings of $1.42, delivering a surprise of -5.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Strategic Education, which belongs to the Zacks Schools industry, posted revenues of $337.26 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.14%. This compares to year-ago revenues of $321.47 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Strategic Education shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Strategic Education?While Strategic Education has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Strategic Education was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.89 on $325.77 million in revenues for the coming quarter and $7.20 on $1.29 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Laureate Education (LAUR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This for-profit higher education purveyor is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of +21.5%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level.
Laureate Education's revenues are expected to be $605.46 million, up 15.5% from the year-ago quarter.
HERNDON, Va.--(BUSINESS WIRE)--Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) today announced financial results for the period ended June 30, 2026. STRATEGIC EDUCATION CONSOLIDATED RESULTS Three Months Ended June 30 Revenue increased 4.9% to $337.3 million compared to $321.5 million for the same period in 2025, driven by strength within the Education Technology Services segment, an increase in U.S. Higher Education segment revenue per student, and favorable foreign currency impa.
Strategic Education could face near-term headwinds in its high-growth ETS segment, particularly Sophia Learning, due to academic integrity concerns raised by recent press scrutiny in the Washington Post. Quality-enhancing initiatives at Sophia may temporarily depress revenue growth, though long-term value remains if academic rigor is maintained. STRA trades at 5.65x EV/NTM EBITDA, near peer valuations and historical lows, suggesting limited downside but warranting caution before new investments.
NEW YORK & MINNEAPOLIS--(BUSINESS WIRE)--Capella University and the WNBA today announced a multi-year partnership, making Capella the Official Higher Learning Partner of the WNBA.
Strategic Education is shifting from low-margin B2C to high-margin edtech, emphasizing employer-affiliated partnerships and recurring SaaS-like revenues. The ETS segment now generates 46% of operating income, with Workforce Edge and Sophia Learning driving 21% and 32% revenue growth, respectively, and margins reaching 47%. I assign STRA a Strong Buy rating with a $117/share target, reflecting a rerating opportunity as recurring tech segment profits rise and multiples approach SaaS peers.
Investors interested in Schools stocks are likely familiar with Strategic Education (STRA - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Strategic Education is sporting a Zacks Rank of #2 (Buy), while Lincoln Educational Services Corporation has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that STRA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
STRA currently has a forward P/E ratio of 10.64, while LINC has a forward P/E of 63.70. We also note that STRA has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LINC currently has a PEG ratio of 4.25.
Another notable valuation metric for STRA is its P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LINC has a P/B of 7.95.
These metrics, and several others, help STRA earn a Value grade of A, while LINC has been given a Value grade of D.
STRA has seen stronger estimate revision activity and sports more attractive valuation metrics than LINC, so it seems like value investors will conclude that STRA is the superior option right now.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Strategic Education (STRA - Free Report) . STRA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is STRA's P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.30. Within the past 52 weeks, STRA's P/B has been as high as 1.53 and as low as 1.06, with a median of 1.26.
Finally, investors will want to recognize that STRA has a P/CF ratio of 12.00. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.81. STRA's P/CF has been as high as 15.87 and as low as 10.81, with a median of 12.87, all within the past year.
These are just a handful of the figures considered in Strategic Education's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that STRA is an impressive value stock right now.
HERNDON, Va.--(BUSINESS WIRE)--Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) today announced that it will host a conference call to discuss its second quarter results on Wednesday, July 29, 2026 at 10:00 a.m. ET. A news release outlining the results will be issued before the market opens the same day.
This call will be available via webcast. To access the live webcast of the conference call on July 29, please go to www.strategiceducation.com in the Investor Relations section 15 minutes prior to the start time of the call to register. Following the call, the webcast will be archived and available at www.strategiceducation.com in the Investor Relations section. To participate in the live call, investors should register here prior to the call to receive dial-in information and a PIN.
About Strategic Education, Inc.
Strategic Education, Inc. (NASDAQ: STRA) (www.strategiceducation.com) is dedicated to helping advance economic mobility through higher education. We primarily serve working adult students globally through our core focus areas: 1) Education Technology Services, developing and maintaining relationships with employers to build education benefits programs providing employees access to affordable and industry-relevant training, certificate, and degree programs, including through Workforce Edge, a full-service education benefits administration solution for employers, and Sophia Learning, which offers low-cost online general education-level courses that are ACE-recommended for college credit; 2) U.S. Higher Education, including Capella University and Strayer University, each institutionally accredited, and collectively offering flexible and affordable associate, bachelor’s, master’s, and doctoral programs; and 3) Australia/New Zealand, comprised primarily of Torrens University. This portfolio of high quality, innovative, relevant, and affordable programs and institutions helps our students prepare for success in today’s workforce and find a path to bettering their lives.
Investors interested in Schools stocks are likely familiar with Strategic Education (STRA) and Lincoln Educational Services Corporation (LINC). But which of these two stocks is more attractive to value investors?
The Zacks Schools industry is progressing through 2026 with a gradually improving medium-term outlook, supported by steady demand for applied and career-oriented education across healthcare, skilled trades, cybersecurity and IT. Labor-market dynamics continue to favor job-ready training models, positioning institutions with strong employer alignment to benefit. Technology adoption is emerging as a key differentiator, with data-driven instruction, adaptive learning and scalable online platforms supporting better engagement, outcomes and cost efficiency. Industry consolidation is also gaining pace, enabling scale benefits and broader program offerings. Policy support, including expanded Workforce Pell access and favorable veteran benefits, appears constructive, aiding affordability and improving enrollment visibility for players such as McGraw Hill, Inc. (MH - Free Report) , Strategic Education, Inc. (STRA - Free Report) , Lincoln Educational Services Corporation (LINC - Free Report) and American Public Education, Inc. (APEI - Free Report) .
However, the industry continues to face notable headwinds. A shrinking traditional student base and intensifying competition from public and nonprofit institutions are weighing on enrollment growth. Affordability concerns remain persistent, while regulatory scrutiny around student outcomes, financial transparency and federal aid eligibility is tightening, increasing compliance costs and execution risks, particularly for career-focused providers. At the same time, rising marketing, labor and technology expenses are pressuring margins and ongoing uncertainty around student-aid processes and loan policies continues to impact enrollment trends and pricing flexibility.
Industry Description The Zacks Schools industry comprises for-profit education companies that offer undergraduate, graduate and specialized programs in finance, accounting, analytics, marketing, healthcare, business and technology. They are engaged in offering career-oriented programs in the fields of business and management, nursing, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. The industry players also offer child-care services and career-oriented post-secondary courses. Some companies within the industry also provide yoga classes and yoga-related retail merchandise-integrated fitness classes, along with conducting workshops and teacher training programs.
4 Trends Shaping the Future of the School Industry Rising Demand for Workforce-Oriented Programs: After years of enrollment declines, the U.S. for-profit education sector is seeing renewed demand for programs with clear employment outcomes. Providers are leveraging flexible models to expand short-term credentials in healthcare, cybersecurity, skilled trades and IT. As employers prioritize job-ready skills over traditional degrees, adult learners and career changers are driving interest. Government reskilling initiatives and workforce partnerships, along with ongoing digital transformation, are further supporting demand for tech-aligned and non-degree programs.
Meanwhile, healthcare and global institutions have been making substantial contributions to the companies' financial success. The U.S. healthcare sector is presently grappling with a pronounced shortage of skilled professionals. The companies have designed their programs to be rigorous and well-suited to address the workforce needs of the healthcare industry. Industry stakeholders also anticipate a future where the demand for healthcare professionals will outstrip the available supply.
Amid regulatory and demographic pressures, the sector is consolidating as larger players acquire smaller institutions to expand offerings and scale. Strategic Education’s tech bootcamp deals and Covista’s integration of Walden University reflect a shift toward healthcare and workforce training, while continued private equity interest signals confidence in ROI-driven, career-focused education segments.
Congress passed “Workforce Pell” in July 2025, aiming to extend Pell Grant eligibility to short-term, job-focused programs from July 1, 2026. While this could expand the market for providers in healthcare, IT and skilled trades, the rollout depends on final regulations and program eligibility, which may affect near-term enrollment and pricing benefits.
Online Education and Tech Integration Drive Market Differentiation: The acceleration of digital learning continues to be a critical differentiator for for-profit colleges. Institutions like Grand Canyon Education, Strategic Education, and Adtalem have invested heavily in learning management systems, data analytics and adaptive learning tools to personalize instruction and enhance student engagement. The shift toward hybrid and asynchronous formats has allowed for-profit players to serve non-traditional and working students more effectively than many public institutions. Scalable digital platforms have also helped manage operating costs, enabling some companies to maintain or improve margins despite enrollment challenges.
Financial & Competitive Pressures: For 2026, margin pressure is set to intensify for for-profit education providers as rising costs and tougher competition collide. Faculty, support services, marketing and technology expenses are outpacing revenue growth, while aggressive enrollment competition is driving up lead-generation costs. At the same time, stricter regulatory and outcomes requirements demand higher spending. With tuition pricing constrained by affordability and student-aid sensitivity, profitability will depend increasingly on efficiency, scale and disciplined capital allocation.
Operational Challenges: For-profit educators face several operational and financial headwinds. Most of their revenues come from tuition and federal aid, so they are vulnerable to any enrollment swings or cuts in government funding. Any dip in student numbers (due to competition, demographic trends or economic cycles) can quickly hit operating income. Compliance and administrative costs are also high, as schools must meet strict reporting and quality standards under Title IV. FAFSA processing challenges continue, prompting late disbursement flexibilities and straining working capital for institutions reliant on Title IV funding cycles. Ongoing operational delays early in the year disrupted receivables timing, while new FVT/GE reporting requirements add compliance burdens and may drive adjustments to program portfolios.
Industry players also often spend heavily on recruitment and advertising to attract students, squeezing margins. Again, macroeconomic factors (like rising interest rates or budget cuts at the state/local level) can constrain school and district purchasing of edtech products, indirectly pressuring vendors’ top lines.
Zacks Industry Rank Indicates Bright Prospects The Zacks Schools industry is an 18-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #25, which places it in the top 10% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since March 2026, the industry’s earnings estimates for 2026 have increased to $1.85 per share (from $1.81).
We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.
Industry Outperforms Sector, Lags S&P 500 The Zacks Schools industry has lagged the Zacks S&P 500 Composite but performed a little better than the broader Zacks Consumer Discretionary sector over the past year.
The stocks in this industry have collectively lost 2.1% compared with the broader sector’s 2.3% decline. Meanwhile, the S&P 500 has increased 31.6% in the said period.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing for-profit education stocks, the industry is currently trading at 12.08X versus the S&P 500’s 21.95X and the sector’s 16.96X.
Over the past five years, the industry has traded as high as 290.96X, as low as 12.08X and at a median of 19.62X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
4 School Stocks to Buy Now Below, we have discussed four stocks from the industry that have solid growth potential.
American Public Education: Based in Charles Town, WV, American Public Education delivers online and campus-based postsecondary education and career-focused learning across the United States. The company is positioned for growth on the back of strong enrollment trends and strategic execution across its education platforms. Momentum in the healthcare segment, particularly at Rasmussen and Hondros, reflects sustained demand for nursing and allied health programs, while initiatives like “Fill the Back Row” are improving capacity utilization and driving operating leverage. The company is also benefiting from portfolio diversification and integration synergies across institutions, which should enhance revenue opportunities and marketing efficiency. Expansion into new campuses and programs, along with improving military and veteran enrollment trends at APUS as funding normalizes, provides additional upside. Coupled with cost optimization, refinancing-led savings and a strong balance sheet, American Public Education has clear visibility into revenue growth and margin expansion ahead.
APEI stock — currently sporting a Zacks Rank #1 (Strong Buy) — surged 145.5% in the past year. APEI has seen an upward estimate revision for 2026 earnings to $2.38 per share from $2.23 over the past 60 days. This company’s earnings for 2026 are expected to grow 75% on 6.4% higher revenues. APEI’s earnings topped the Zacks Consensus Estimate in all the last four quarters, with the average surprise being 187.5%. Moreover, APEI’s three-to-five-year expected earnings per share growth rate is currently pegged at 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: APEI
Lincoln Educational Services: This Parsippany, NJ–based provider of career-focused postsecondary education offers training programs to high school graduates and working adults across the United States. Lincoln is benefiting from strong structural demand for skilled trades, driven by a widening labor shortage, rising skepticism toward traditional four-year degrees and growing employer demand across sectors like HVAC, automotive and electrical work. The company’s growth is supported by consistent student start expansion, new campus openings and program replications, alongside solid organic growth at existing locations. Its hybrid “Lincoln 10.0” model is improving accessibility and efficiency, while corporate partnerships and high school initiatives are expanding enrollment channels. Continued investments in new campuses and underserved markets, combined with improving placement rates and operating leverage, position LINC for sustained revenue and earnings growth.
LINC stock — currently carrying a Zacks Rank #2 (Buy) — surged 133.9% in the past year. LINC has seen an upward estimate revision for 2026 earnings to 71 cents per share from 70 cents over the past 60 days. This company’s earnings for 2026 are expected to decline 22.8% on 13% higher revenues. LINC’s earnings topped the Zacks Consensus Estimate in all the last four quarters, with the average surprise being 96.4%. Moreover, LINC’s three-to-five-year expected earnings per share growth rate is currently pegged at 15%.
Price and Consensus: LINC
Strategic Education: This company offers campus-based and online post-secondary education, focusing on building job-ready skills, and is headquartered in Herndon, VA. Strategic Education’s growth prospects are increasingly tied to its shift toward higher-value, scalable segments. The Education Technology Services division remains a key driver, with strong momentum in Sophia Learning subscriptions and expanding Workforce Edge partnerships, which now cover millions of employees and are boosting enrollment into core universities. The company’s employer-focused strategy is also gaining traction, with employer-affiliated enrollment reaching record levels and supported by healthcare program demand. Additionally, continued investment in AI-driven productivity and cost efficiencies is supporting margin expansion, while improving enrollment trends suggest revenue growth could accelerate beyond the first-quarter low point.
STRA stock — currently carrying a Zacks Rank #2 — lost 2.9% in the past year. Nonetheless, STRA has seen an upward estimate revision for 2026 earnings to $7.12 per share from $6.97 over the past seven days. This company’s earnings for 2026 are expected to grow 15.2% on 2.8% higher revenues. STRA’s earnings topped the Zacks Consensus Estimate in three of the last four quarters and missed on one occasion, with the average surprise being 11.2%. Moreover, STRA’s three-to-five-year expected earnings per share growth rate is currently pegged at 15%. It also has a VGM Score of A.
Price and Consensus: STRA
McGraw Hill: This company delivers digital learning and educational content for K-12, higher education and professional markets and is headquartered in Columbus, OH. McGraw Hill is well positioned for long-term growth, supported by strong momentum in its higher education segment, driven by market share gains, enrollment strength and pricing, alongside rapid adoption of its Evergreen platform and Inclusive Access model. The company’s shift toward a digital, subscription-based model—where recurring revenue now forms a large majority—enhances visibility and margins. AI-led innovation, including tools like AI Reader and Sharpen Advantage, is boosting engagement and expanding addressable markets. Additionally, expanding institutional sales, cross-selling opportunities and upcoming large K-12 adoption cycles position the company for sustained growth and a return to stronger revenue expansion in fiscal 2027.
MH stock — currently carrying a Zacks Rank #2 — lost 29.5% in the past year. Nonetheless, STRA has seen an upward estimate revision for fiscal 2026 and 2027 earnings to $1.81 per share (from $1.79) and to $1.81 per share (from $1.78) over the past seven days, respectively. This company’s earnings for fiscal 2027 are expected to grow 0.2% on 4.2% higher revenues. MH’s earnings topped the Zacks Consensus Estimate in the last two quarters, with the average surprise being 380%. It also has a VGM Score of B.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 1
Strategic Education, Inc. (STRA - Free Report) : This education services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
Strategic Education has a price-to-earnings ratio (P/E) of 11.09 compared with 16.40 for the industry. The company possesses a Value Scoreof A.
Global Partners LP (GLP - Free Report) : This energy marketing and logistics company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.8% over the last 60 days.
Global Partners has a price-to-earnings ratio (P/E) of 14.89 compared with 94.70 for the industry. The company possesses a Value Score of A.
Enova International, Inc. (ENVA - Free Report) : This technology and analytics company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.1% over the last 60 days.
Enova has a price-to-earnings ratio (P/E) of 10.26 compared with 11.80 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, May 1
Strategic Education, Inc. (STRA - Free Report) : This education services company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 3.04%, compared with the industry average of 0.0%.
Global Partners LP (GLP - Free Report) : This energy marketing and logistics company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 6.4%, compared with the industry average of 6.1%.
Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) : This beverage bottling company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2.1%, compared with the industry average of 0.0%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 1
Strategic Education, Inc. (STRA - Free Report) : This education services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
Strategic Education's shares gained 6.6% over the last six months compared with the S&P 500’s advance of 5.2%. The company possesses a Momentum Score of A.
The Vita Coco Company, Inc. (COCO - Free Report) : This beverage company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.
The Vita Coco's shares gained 18.4% over the last three months compared with the S&P 500’s advance of 2.9%. The company possesses a Momentum Score of B.
Enova International, Inc. (ENVA - Free Report) : This technology and analytics company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.1% over the last 60 days.
Enova's shares gained 38.4% over the last six months compared with the S&P 500’s advance of 5.2%. The company possesses a Momentum Score of A.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Lululemon?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Lululemon (LULU - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.70 a share, just 30 days from its upcoming earnings release on June 4, 2026.
By taking the percentage difference between the $1.70 Most Accurate Estimate and the $1.69 Zacks Consensus Estimate, Lululemon has an Earnings ESP of +0.47%. Investors should also know that LULU is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
LULU is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Strategic Education (STRA - Free Report) as well.
Slated to report earnings on July 29, 2026, Strategic Education holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.81 a share 85 days from its next quarterly update.
For Strategic Education, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.77 is +2.26%.
LULU and STRA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education, Inc. or SEI, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses.
STRA is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.13; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.33 to $7.20 per share. STRA also boasts an average earnings surprise of +11.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, STRA should be on investors' short list.
Investors with an interest in Schools stocks have likely encountered both Strategic Education (STRA - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Strategic Education has a Zacks Rank of #2 (Buy), while Lincoln Educational Services Corporation has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STRA is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
STRA currently has a forward P/E ratio of 10.90, while LINC has a forward P/E of 68.31. We also note that STRA has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LINC currently has a PEG ratio of 4.55.
Another notable valuation metric for STRA is its P/B ratio of 1.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LINC has a P/B of 8.
Based on these metrics and many more, STRA holds a Value grade of A, while LINC has a Value grade of D.
STRA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that STRA is likely the superior value option right now.
Key Takeaways NEXA has a 59.9% average earnings surprise, and shares surged 182.6% over the past year.AVT consensus sees 20.7% sales growth and 48.8% EPS growth this financial year.USANA Health consensus calls for 2.1% sales growth and 9.8% EPS growth; shares fell 37% past year. The U.S. stock market closed higher yesterday, with the Dow Jones Industrial Average gaining 276.31 points, or 0.55%, to finish at 50,285.66. Broader indexes followed suit, with the S&P 500 rising 0.17% to 7,445.72, while the Nasdaq Composite increased 22.74 points to close at 26,293.10. The rally was supported by a retreat in oil prices, strength in semiconductor and AI-related stocks and a calmer global risk sentiment as investors tracked progress in U.S.-Iran talks.
Against this backdrop, value stocks present an appealing opportunity. When evaluating value stocks, one of the most effective valuation metrics is the Price-to-Cash Flow (P/CF) ratio. This metric measures a stock's market price relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price.
Companies — Nexa Resources S.A. (NEXA - Free Report) , Avnet, Inc. (AVT - Free Report) , Strategic Education, Inc. (STRA - Free Report) and USANA Health Sciences, Inc. (USNA - Free Report) — boast a low P/CF ratio.
Price to Cash Flow Reflects Financial HealthYou must be wondering why we consider the P/CF valuation metric when the most widely used valuation metric is Price/Earnings (or P/E). An important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company’s financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. Then again, cash flow is quite reliable. Net cash flow unveils how much money a company generates and how effectively management is deploying the same.
Positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, meet its expenses, reinvest in the business, endure downturns and finally undertake shareholder-friendly moves. Negative cash flow implies a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these endeavors.
What’s the Best Value Investing Strategy?An investment decision based solely on the P/CF metric may not yield the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio, the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio gives a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are four out of the 15 value stocks that qualified the screening:
Nexa Resources, a large-scale, low-cost, integrated polymetallic producer, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 59.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nexa Resources’ current financial-year sales and EPS implies growth of 14.6% and 214.1%, respectively, from the year-ago period. NEXA has a Value Score of A. Shares of NEXA have soared 182.6% over the past year.
Avnet, a leading global technology distributor and solutions provider, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.5%, on average.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 20.7% and 48.8%, respectively, from the year-ago period. AVT has a Value Score of A. Shares of AVT have surged 67.7% over the past year.
Strategic Education, which provides education services, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Strategic Education’s current financial-year sales and EPS indicates growth of 2% and 16.5%, respectively, from the year-ago period. STRA has a Value Score of A. Shares of STRA have fallen 10% over the past year.
USANA Health, which develops and manufactures high-quality nutritional supplements, functional foods and personal care products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 30.5%, on average.
The Zacks Consensus Estimate for USANA Health’s current financial-year sales and EPS calls for growth of 2.1% and 9.8%, respectively, from the year-ago period. USNA has a Value Score of A. Shares of USNA have declined 37% over the past year.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Strategic Education (STRA - Free Report) is a stock many investors are watching right now. STRA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STRA has a P/S ratio of 1.4. This compares to its industry's average P/S of 1.43.
Finally, investors will want to recognize that STRA has a P/CF ratio of 12.00. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. STRA's current P/CF looks attractive when compared to its industry's average P/CF of 23.83. Over the past 52 weeks, STRA's P/CF has been as high as 15.87 and as low as 10.81, with a median of 12.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Strategic Education is likely undervalued currently. And when considering the strength of its earnings outlook, STRA sticks out as one of the market's strongest value stocks.
Investors with an interest in Schools stocks have likely encountered both Strategic Education (STRA) and Lincoln Educational Services Corporation (LINC). But which of these two stocks presents investors with the better value opportunity right now?
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Strategic Education (STRA - Free Report) Strategic Education, Inc. or SEI, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses.
STRA is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.02; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.23 to $7.20 per share. STRA boasts an average earnings surprise of +11.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, STRA should be on investors' short list.
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NEW YORK and CHICAGO, June 03, 2026 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”), a preeminent national consumer rights law is investigating claims on behalf of people who have been impacted by the Strategic Education, Inc. (“Strategic”) data breach.
Strategic, the parent of Capella University and Strayer University, announced that the personal information of individuals may have been stolen as part of a data breach which occurred in February 2026.
Strategic is notifying affected people that their personal information, including at least names, Social Security numbers and driver’s license numbers, may have been stolen.
If you have received a recent notice of the data breach and have experienced recent concerning activity, it is possible that your personal information was compromised and is being offered for sale on the dark web.
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If you wish to discuss this data breach incident, or if you have any questions regarding your rights and interests in this matter, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website.
Wolf Haldenstein Adler Freeman & Herz LLP has experience in the prosecution of consumer rights litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas and offices in New York, Chicago, Nashville and San Diego. Courts have repeatedly recognized the reputation and expertise of this firm and have appointed it to major positions in complex consolidated litigation.
Contact:
Gregory Stone, Director of Case and Financial Analysis
Carl Malmstrom, Esq., Of Counsel
Email: [email protected] or [email protected]
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Strategic Education (STRA - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Strategic Education basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Strategic Education imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Strategic EducationFor the fiscal year ending December 2026, this for-profit education company is expected to earn $7.20 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Strategic Education. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Strategic Education to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Strategic Education (STRA - Free Report) . STRA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We should also highlight that STRA has a P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.15. STRA's P/B has been as high as 1.53 and as low as 1.06, with a median of 1.26, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STRA has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.46.
Finally, investors should note that STRA has a P/CF ratio of 12.00. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. STRA's current P/CF looks attractive when compared to its industry's average P/CF of 20.03. Within the past 12 months, STRA's P/CF has been as high as 15.87 and as low as 10.81, with a median of 12.87.
These are only a few of the key metrics included in Strategic Education's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, STRA looks like an impressive value stock at the moment.
