Latest news with #ATGE
Yahoo
10 hours ago
- Business
- Yahoo
Is ADTALEM GBL EDU (ATGE) Stock Outpacing Its Consumer Discretionary Peers This Year?
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Adtalem Global Education (ATGE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question. Adtalem Global Education is one of 255 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Adtalem Global Education is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for ATGE's full-year earnings has moved 5.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that ATGE has returned about 32% since the start of the calendar year. At the same time, Consumer Discretionary stocks have gained an average of 5.8%. As we can see, Adtalem Global Education is performing better than its sector in the calendar year. Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Fox (FOXA). The stock has returned 10.8% year-to-date. The consensus estimate for Fox's current year EPS has increased 3% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Adtalem Global Education is a member of the Schools industry, which includes 17 individual companies and currently sits at #17 in the Zacks Industry Rank. On average, stocks in this group have gained 6% this year, meaning that ATGE is performing better in terms of year-to-date returns. In contrast, Fox falls under the Broadcast Radio and Television industry. Currently, this industry has 19 stocks and is ranked #78. Since the beginning of the year, the industry has moved +25.5%. Investors interested in the Consumer Discretionary sector may want to keep a close eye on Adtalem Global Education and Fox as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
ATGE Q1 Earnings Call: Enrollment Growth, Digital Initiatives, and Increased Guidance
Vocational education company Adtalem Global Education (NYSE:ATGE) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 12.9% year on year to $466.1 million. The company's full-year revenue guidance of $1.77 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP profit of $1.92 per share was 16.2% above analysts' consensus estimates. Is now the time to buy ATGE? Find out in our full research report (it's free). Revenue: $466.1 million vs analyst estimates of $446.4 million (12.9% year-on-year growth, 4.4% beat) Adjusted EPS: $1.92 vs analyst estimates of $1.65 (16.2% beat) Adjusted EBITDA: $127.8 million vs analyst estimates of $111.2 million (27.4% margin, 14.9% beat) The company lifted its revenue guidance for the full year to $1.77 billion at the midpoint from $1.75 billion, a 1.3% increase Management raised its full-year Adjusted EPS guidance to $6.50 at the midpoint, a 4.8% increase Operating Margin: 20.9%, up from 19.5% in the same quarter last year Market Capitalization: $4.36 billion Adtalem's first-quarter results were shaped by significant enrollment growth across its core institutions and continued investment in digital learning tools. CEO Steve Beard highlighted Chamberlain University's expansion of its BSN Online program and Walden University's strong student persistence, both contributing to the company's momentum. Beard pointed to Walden's use of predictive analytics to improve student retention, stating, 'We've increased and enhanced our ability to intervene in the student journey in ways that keep our students pacing through materials in ways that ensure they're successful.' Growth in the Medical and Veterinary segment, though modest, was also noted, with Beard referencing increased inquiry-to-enrollment conversion. Segment performance benefited from strategic initiatives aimed at expanding access and improving academic outcomes. Looking ahead, management's updated guidance reflects expectations for continued enrollment gains and margin expansion, underpinned by ongoing investments in digital platforms, program capacity, and geographic reach. CFO Bob Phelan explained that the company plans to increase growth investments in the coming quarter to 'set us up well heading into next year,' suggesting a focus on both operational leverage and long-term scalability. Beard indicated that Adtalem is exploring new program launches and potential geographic expansion, stating, 'There are new programs we'd like to bring online... and the vehicles we would use to accomplish bringing on that new capacity are everything from investments in existing programs to acquiring new programs, to standing up new de novo programs.' Management attributed the quarter's outperformance to broad-based enrollment gains, investments in student-facing digital tools, and ongoing partnerships with healthcare providers. Enrollment-driven revenue growth: Significant student enrollment increases at Chamberlain University and Walden University were primary drivers, supported by expanded online offerings and high persistence rates. Digital innovation impact: Walden University's implementation of predictive analytics and digital engagement tools improved student retention and academic outcomes, with Beard noting near-record persistence across large programs. Healthcare partnerships and specialty focus: Chamberlain's Practice Ready Specialty Focused program, developed with healthcare partners, gave students hands-on exposure to high-demand specialties, which management believes improves job placement and employer satisfaction. Medical and Veterinary segment stabilization: While enrollment returned to growth in this segment, margins declined due to timing of investments and structural costs; management views this as positioning for future expansion. Share repurchase and capital allocation: Completion of a $300 million share repurchase and authorization of an additional $150 million program were highlighted, reflecting a focus on returning capital while funding innovation and operational growth. Adtalem expects that sustained enrollment momentum, enhanced digital tools, and expanded program capacity will drive continued revenue and margin growth in the coming quarters. Capacity and program expansion: Management plans to invest in expanding existing program capacity and launching new offerings, including geographic expansion and additions in high-demand healthcare fields, to capture unmet market demand. Innovation in student engagement: Continued deployment of predictive analytics and digital interventions is expected to further improve student retention and success, which management sees as key to profitability and long-term growth. Regulatory and funding environment: While management does not anticipate near-term funding pressure or regulatory headwinds, ongoing monitoring of legislative and Department of Education developments remains a priority given the sector's sensitivity to policy changes. In the coming quarters, the StockStory team will monitor (1) the pace and effectiveness of Adtalem's investments in new program capacity and geographic reach, (2) improvements in student retention and academic outcomes driven by digital engagement tools, and (3) stability and recovery of margins in the Medical and Veterinary segment as operational investments mature. Developments in federal education policy or funding will also be important to watch. Adtalem currently trades at a forward P/E ratio of 17.5×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
28-05-2025
- Business
- Yahoo
Here's What Could Help Adtalem (ATGE) Maintain Its Recent Price Strength
Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. There are several stocks that passed through the screen and (ATGE) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ATGE is quite a good fit in this regard, gaining 32% over this period. However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 20.4% over the past four weeks ensures that the trend is still in place for the stock of this for-profit education company. Moreover, ATGE is currently trading at 86.6% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout. Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. 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 Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance. So, the price trend in ATGE may not reverse anytime soon. In addition to ATGE, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Here's How Much a $1000 Investment in Adtalem Global Education Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries. Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks. What if you'd invested in Adtalem Global Education (ATGE) ten years ago? It may not have been easy to hold on to ATGE for all that time, but if you did, how much would your investment be worth today? With that in mind, let's take a look at Adtalem Global Education's main business drivers. Adtalem Global Education Inc. is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services. Since first-quarter fiscal 2022, Adtalem has operated in three reportable segments:Chamberlain includes the operations of Chamberlain University, founded in 1889 as Deaconess College of Nursing and acquired by Adtalem in 2005. The segment offers degree and non-degree programs in the nursing and health professions postsecondary education includes the operations of Walden University, which Adtalem acquired on August 12, 2021. The segment offers more than 100 online certificate, bachelor's, master's and doctoral and Veterinary includes the operations of the AUC, RUSM, and RUSVM, which are collectively referred to as the 'medical and veterinary schools'. This segment offers degree and non-degree programs in the medical and veterinary postsecondary education Office and Other include activities that are not related to any reportable segment and are required to reconcile segmental the second quarter of fiscal 2022, Adtalem eliminated its Financial Services segment when ACAMS, Becker, OCL, and EduPristine were classified as discontinued operations and assets held for sale. On Mar 10, 2022, the company completed the sale of ACAMS, Becker and OCL. On Jun 17, 2022, it completed the divesture of EduPristine. Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Adtalem Global Education ten years ago, you're likely feeling pretty good about your investment today. According to our calculations, a $1000 investment made in May 2015 would be worth $4,013.12, or a 301.31% gain, as of May 23, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation. In comparison, the S&P 500 gained 174.78% and the price of gold went up 162% over the same time frame. Looking ahead, analysts are expecting more upside for ATGE. Adtalem posted impressive third-quarter fiscal 2025 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimates by 17.8% and 4.9%, respectively. Both metrics increased year over year by 28% and 12.9%. This upside was backed by strong enrollment growth and higher tuition rates. Also, its focus on strategic initiatives and the efficient execution of the Growth with Purpose strategy is boding well. Total student enrollment rose 9.8% year over year to 94,223 students in the quarter. Owing to the trend of results and favorable aspects, the company raised its fiscal 2025 guidance across revenues and adjusted earnings. Shares of Adtalem have outperformed the industry in the year-to-date period. However, margin pressure in the Medical and Veterinary segment and increased expenses are concerning. Over the past four weeks, shares have rallied 22.99%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
3 Unpopular Stocks with Questionable Fundamentals
Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals. Consensus Price Target: $44.44 (2.5% implied return) Named after the founders' affinity for frogs, JFrog (NASDAQ:FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams. Why Are We Wary of FROG? Operating losses show it sacrificed profitability while scaling the business Projected 6.6 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position At $43.35 per share, JFrog trades at 9.3x forward price-to-sales. If you're considering FROG for your portfolio, see our FREE research report to learn more. Consensus Price Target: $141.25 (10.3% implied return) Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services. Why Is ATGE Not Exciting? Lackluster 9.7% annual revenue growth over the last two years indicates the company is losing ground to competitors Projected 1.3 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position Underwhelming 9.7% return on capital reflects management's difficulties in finding profitable growth opportunities Adtalem's stock price of $128.10 implies a valuation ratio of 18.5x forward P/E. Read our free research report to see why you should think twice about including ATGE in your portfolio, it's free. Consensus Price Target: $43 (9.7% implied return) Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete. Why Do We Think ASTE Will Underperform? Backlog has dropped by 28.1% on average over the past two years, suggesting it's losing orders as competition picks up Estimated sales growth of 3.5% for the next 12 months is soft and implies weaker demand 8.1 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Astec is trading at $39.21 per share, or 14x forward P/E. To fully understand why you should be careful with ASTE, check out our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
