4. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Stock Price as of August 16: $71.28
Average Analyst Price Target Upside as of August 16: 36.78%
New Oriental Education & Technology Group Inc. (NYSE:EDU) delivers private educational services in China. The company runs through four primary segments, Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Educational Materials and Distribution.
Its offerings include after-school tutoring for K-12 students, preparation courses for various tests, language training, and a range of online education options. Beyond academic tutoring, the company provides advanced learning systems and devices to enhance digital education experiences. Additionally, it offers consulting services for students pursuing studies abroad.
Through its Koolearn.com platform, the company delivers an extensive range of online education courses. The company offers its services through a broad network of learning centers, schools, and bookstores, combined with its online presence, reaching a large number of students.
New Oriental Education (NYSE:EDU) is demonstrating robust growth and an expansive business model that sets it apart from competitors focused only on online education. For the fiscal fourth quarter, the company reported a non-GAAP EPS of $0.22. It reported revenues of $1.14 billion, jumping 32.6% year-over-year. This growth was primarily driven by the success of its new educational initiatives and the expansion of its East Buy private label and live-streaming e-commerce ventures.
During the quarter, the company accelerated its expansion in cities with high growth potential, enhancing profitability through increased facility utilization. The company’s network of schools and learning centers grew significantly, reaching 1,025 locations by May 31, 2024, up from 911 in February 2024 and 748 a year earlier. This expansion includes 81 schools as of the end of May, which signifies its commitment to increasing its physical presence.
Additionally, New Oriental Education’s (NYSE:EDU) overseas test preparation and study consulting services saw growth of about 17.7% and 17.3% year-over-year, respectively. Domestically, the test preparation business for adults and university students also performed well, with a growth rate of approximately 16.4% year-over-year. This broad range of services and the ability to adapt to market demands highlight its strength and versatility.
For the first quarter of fiscal year 2025, the company expects strong revenue growth. It has projected total net revenues to range between $1.25 billion and $1.28 billion, which reflects a year-over-year increase of 31% to 34%. This optimistic forecast, combined with its ongoing expansion and successful business initiatives, suggests a promising future for New Oriental Education (NYSE:EDU) in the education sector.
As per the opinion of 31 analysts, New Oriental Education (NYSE:EDU) has a Strong Buy rating. The average price target of $97.50 implies an upside of 36.78% from the present levels, as of August 16. It is among our best defensive stocks to buy now.
