10 Worst Affordable Stocks To Buy Right Now

7. Stride, Inc. (NYSE:LRN)

Forward P/E Ratio: 16.06

Earnings Growth This Year: 6.00%

Number of Hedge Fund Holders: 27

Short % of Shares Outstanding: 12.78%

Stride, Inc. (NYSE:LRN) is a technology company that provides educational learning platforms for students in the US. The platform enrolls, educates, and tracks the progress of the students. Its products and services span over curriculum, education systems, instructions, and support services designed for students of all grades.

It is one of the worst affordable stocks to buy right now as it has a high short interest as a percentage of outstanding shares at 12.78%. However, let’s not forget that LRN was held by 27 hedge funds in the second quarter, with total stakes amounting to $154.16 million.

The two major markets that the company addresses in the K-12 area include General Education and Career Learning.

Stride, Inc. (NYSE:LRN) just ended a successful fiscal 2024, with revenue for the year at an all-time high of $2 billion. The recent year marked the eighth consecutive year of revenue growth. The company has positioned itself as a leader in the education technology and digital learning space. The leadership position was demonstrated by a 9% enrollment growth during the year, General Education enrollment growing 8.3% and Career Learning growing 10.3%.

In terms of finances and profitability, Stride, Inc. (NYSE:LRN) has been gaining investor attention. Its adjusted operating income improved 46% during the year to reach $294 million, with Cash, Cash Equivalents & Marketable Securities at $714.2 million.

Moreover, the company is on track to achieve its FY2028 targets of revenue between $2.7 billion and $3.3 billion, and operating income between $415 million and $585 million. LRN is trading at 16 times its forward earnings, while the market average is at 23. Its earnings are also expected to grow 6% during the year, making it undervalued at current levels.