12 Best Education Stocks to Buy in 2025

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9. Universal Technical Institute, Inc. (NYSE:UTI)

Number of Hedge Fund Holders: 26

Universal Technical Institute, Inc. (NYSE:UTI) provides healthcare education programs, transportation, and skilled trades. Its segments comprise Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde). The UTI segment is spread over 16 campuses in 9 US states, offering a number of degree and non-degree transportation and skilled trades technical training programs under various brands. These include Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The Concorde segment functions in 17 campuses in 8 US states and online. It offers non-degree, degree, and continuing education programs in diagnostic fields, allied health, nursing, dental, and patient care.

The company reported a 15% year-over-year revenue growth in fiscal Q1 2025 to $201.4 million. It also reported an 11% growth in average full-time active students, reaching 25,062. Universal Technical Institute, Inc.’s (NYSE:UTI) net income for fiscal Q1 2025 increased by $22.2 million, and adjusted EBITDA grew by 45% year-over-year to $35.5 million.

Universal Technical Institute, Inc. (NYSE:UTI) thus has strong financials. Its total new student starts grew 22% year-over-year in fiscal Q1 2025, reflecting a positive light surrounding the company. This positive performance was attributed to top-line performance exceeding the company’s expectations in both segments. It ranks ninth on our list.

Conestoga Capital Advisors stated the following regarding Universal Technical Institute, Inc. (NYSE:UTI) in its Q4 2024 investor letter:

“Universal Technical Institute, Inc. (NYSE:UTI) is a leading workforce education provider of skilled trade and healthcare and education programs. UTI trains over 20,000 students annually. Shares jumped on the election results but generated most of the quarter’s return on the company’s strong fourth-quarter results. Revenue grew 15% and beat expectations. EBITDA margins have also risen over the past year. Fiscal year 2025 guidance was nudged higher earlier in 2024, driven by the strong new student enrollment UTI is seeing across its markets.”

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