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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.

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.

Jun 24, 2026 4:10 PM Eastern Daylight Time

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.

More News From Strategic Education, Inc.

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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.

Price and Consensus: MH

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.

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.

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.

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?

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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.

PLEASE CLICK HERE TO SUBMIT YOUR CONTACT INFORMATION

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]
Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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.