5 Schools Stocks Leading the Expanding Education Industry

ZACKS

Shrabana Mukherjee

December 3, 2024

The U.S. education sector has seen diverse growth fueled by factors such as the growing popularity of e-books, the expansion of online learning platforms, increased demand for healthcare professionals, advancements in technology, the adoption of hybrid teaching models, and strategic acquisitions targeting global expansion. Despite these advancements, companies within the Zacks Schools industry face challenges, including higher advertising and marketing costs, expenses tied to online education, and the emerging threat posed by generative artificial intelligence (AI).

Despite these hurdles, players in the industry, such as Grand Canyon Education, Inc. LOPE, Stride, Inc. LRN, Adtalem Global Education Inc. ATGE, Universal Technical Institute, Inc. UTI and Lincoln Educational Services Corporation LINC, are expected to benefit from innovative product offerings, particularly those incorporating AI and game-based learning, alongside prudent cost management and a focus on profitability. For-profit education companies are also forming partnerships with corporations and community colleges to enhance workforce education.

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 as well as 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.

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