In this article, we will look at the 12 Best Education Stocks to Buy in 2025.
Is The Time for the Department of Education Over?
The future of the Department of Education in the US is a significant subject of debate in the education sector, as the Trump administration has already started to close parts of it, with plans to shut it down completely. The Department of Education is a significant body in the country, responsible for distributing college aid, underwriting student loans, and ensuring unhindered access to education for all.
CNBC reported that President Trump campaigned to find and eradicate the “radicals who have infiltrated the federal Department of Education,” nominating Linda McMahon to help improve the department. In a White House press conference on February 4, President Trump said:
“I want Linda to put herself out of a job.”
The US Department of Education was established by former President Jimmy Carter in 1979. Since the Department of Education is an agency authorized by Congress, congressional approval is necessary to shut it down. However, President Trump, Elon Musk, and the DOGE team are continually chipping at it, as reported by CNBC. Experts are of the opinion that although some of the programs administered and managed by the department can be distributed to other agencies, this transition may result in significant disruptions to the country’s $1.6 trillion student loan program.
President Trump’s efforts against the department are facing criticism from experts and US citizens alike. CNBC reported the results of a poll conducted by Data for Progress on behalf of the Student Borrower Protection Center and Groundwork Collaborative, showing that 61% of likely voters were of the opinion that they would oppose the Trump administration’s use of an executive order to abolish the Education Department. Only 34% of respondents approved of this move. The survey of 1,294 people was conducted between January 31 to February 2.
Significant Cuts in the Department of Education Already Underway
Elon Musk’s DOGE team significantly scaled down the Institute of Education Sciences, which is the research wing of the Education Department. In a statement, the American Educational Research Association and the Council of Professional Associations on Federal Statistics said 169 contracts were canceled. Some of the canceled contracts were related to the collection and reporting of education statistics. CNBC reported that Sameer Gadkaree, president and CEO of The Institute for College Access & Success, said the following about the scenario:
“Sensible public policy for education depends on strong research and basic collection and availability of data on institutional performance and student outcomes. Without it, Americans will be in the dark on shifts in debt, student success, and how public dollars should be invested to increase effectiveness.”
CNBC also reported that Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers, was of the following opinion:
“One of the intents [of the administration’s actions] is to redistribute funding from the federal education department to states and localities. If such a redistribution occurs, this will likely improve, as opposed to hurt, learning as state and locals are better suited to address their heterogeneous needs. The one-size-fits-all nature of federal regulations and spending programs can often be improved upon.”
Shifting the Department of Education’s $1.6 trillion student loan program is not anticipated to be an easy process that may go smoothly by experts. It may have ripples across a current college student body of millions, along with more than 42 million borrowers with federal student loan debt.
With these trends in view, let’s look at the 12 best education stocks to buy in 2025.
A student conducting a self-taught higher education examination in a library.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 education stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Education Stocks to Buy in 2025
12. Strategic Education, Inc. (NASDAQ:STRA)
Number of Hedge Fund Holders: 22
Strategic Education, Inc. (NASDAQ:STRA) is an education services company that provides access to post-secondary education through online and campus-based post-secondary offerings. The company operates through its subsidiaries Strayer University and Capella University, accredited American post-secondary institutions, and Torrens University, an Australian accredited post-secondary institution. Its segments are divided into US Higher Education (USHE), Australia/New Zealand, and Education Technology Services.
The company reported that the percentage of US higher education enrollment stemming from its corporate partnerships rose by 200 basis points to 30% in fiscal Q3 2024. Student retention in US higher education remained stable at 87%. In addition, revenue from US higher education rose 3% in the quarter, while operating income grew 10% compared to last year.
In addition to the US, Strategic Education, Inc. (NASDAQ:STRA) is experiencing solid results in New Zealand and Australia as well, with the segment posting another quarter of total enrollment growth, with enrollment increasing 5% from the prior year to more than 19,000 students. Revenue also increased 11% on a constant currency basis from the prior year in fiscal Q3 2024. This growth was attributed to higher revenue per student and increased enrollment. Strategic Education, Inc. (NASDAQ:STRA) thus has a strong operational model in place. It ranks 12th on our list of the best education stocks to buy in 2025.
11. Laureate Education, Inc. (NASDAQ:LAUR)
Number of Hedge Fund Holders: 23
Laureate Education, Inc. (NASDAQ:LAUR) operates a portfolio of degree-granting Mexican and Peruvian higher education institutions known as the Laureate International Universities network. The network offers a list of graduate and undergraduate degrees through online, in-person, and hybrid programs. The company operates in two segments: Mexico and Peru. In Mexico, it owns the Universidad del Valle de Mexico (UVM) and Universidad Tecnologica de Mexico (UNITEC). In Peru, the company owns Universidad Peruana de Ciencias Aplicadas (UPC), Universidad Privada del Norte (UPN), and CIBERTEC institution. It has around 450,000 students enrolled at five institutes spread across more than 50 campuses.
Laureate Education, Inc. (NASDAQ:LAUR) reported a 3% revenue growth in fiscal Q4 2024 and a 10% revenue growth on an organic constant currency basis. Its operating income also grew to $124.2 million in fiscal Q4 2024, compared to $110.0 million for fiscal Q4 2023. The company’s net income for the quarter reached $93.6 million, compared to net income of $41.7 million for the same quarter last year. This growth was attributed to higher operating income and the effect of changes in foreign currency exchange rates on intercompany balances compared to 2023.
New enrollments in fiscal year 2024 increased by 5%, and total enrollments grew by the same number. These trends reflect the growing popularity and profitability of Laureate Education, Inc. (NASDAQ:LAUR). Management expects to deliver US dollar-reported growth in both adjusted EBITDA and unlevered free cash flow in 2025, supported by its continued margin expansion efforts and robust momentum in local currency revenue growth.
10. Udemy, Inc. (NASDAQ:UDMY)
Number of Hedge Fund Holders: 25
Udemy, Inc. (NASDAQ:UDMY) is a global learning company with an online platform for skill acquisition, validation, and development. It operates in two segments: Consumer and Enterprise. The Consumer segment targets individual learners, helping them attain valuable job skills and hands-on learning to excel in their professional careers. The Enterprise segment focuses on businesses and government customers, allowing them to reskill and upskill their public servants and employees.
The company is increasingly addressing the growing demand for skill development for individuals and enterprises worldwide. 2025 is expected to be a transition year for Udemy, Inc. (NASDAQ:UDMY) as it is focusing on the strategic pivot to execute its plan of concentrating resources upmarket.
Its strong financial position supports its plans to accelerate product innovation, drive profitable growth, and deliver long-term stakeholder value. Udemy, Inc. (NASDAQ:UDMY) reported an 8% year-over-year growth in total revenue in fiscal year 2024. The company’s Enterprise segment, Udemy Business, underwent an 18% year-over-year revenue growth, while the Udemy Business Annual Recurring Revenue (ARR) increased 11% year-over-year to $516.9 million. The company also reported a 5% year-over-year revenue growth in fiscal Q4 2024. It added eight million new learners and nearly 1,400 net new Enterprise customers to the Udemy platform in 2024, ending the year with a total of 77 million and 17,096 customers, respectively.
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.”
8. Perdoceo Education Corporation (NASDAQ:PRDO)
Number of Hedge Fund Holders: 27
Perdoceo Education Corporation (NASDAQ:PRDO) offers post-secondary education through its academic institutions via online, campus-based, and blended learning programs. Its academic institutions include Colorado Technical University (CTU) and the American InterContinental University System (AIUS), which offer degree and non-degree career-focused and industry-relevant academic programs. CTU’s academic programs range from business and management, healthcare management, and project management to nursing, computer science, engineering, information systems and technology, cybersecurity, and criminal justice. In contrast, AIUS offers academic programs in career-oriented disciplines such as education, business studies, criminal justice, health sciences, and information technologies.
In December, the company acquired St. Augustine, a leader in graduate health science degrees such as physical therapy, occupational therapy, speech therapy, and nursing. The strategic acquisition allowed Perdoceo Education Corporation (NASDAQ:PRDO) to expand and diversify its academic offerings significantly in the health sciences field. Management expects St. Augustine to contribute to the company’s operating income and adjusted operating income in 2025 and provide further growth in 2026.
Apart from the acquisition, Perdoceo Education Corporation (NASDAQ:PRDO) has solid functioning. It reported net income of $31.5 million for fiscal Q4 2024, exceeding expectations. Total student enrollments at CTU grew by 8.1% compared to the prior year-end, and those at AIUS rose 11.8%, reflecting the growing demand for its operations.
7. Graham Holdings Company (NYSE:GHC)
Number of Hedge Fund Holders: 27
Graham Holdings Company (NYSE:GHC) is a diversified holding company that operates through various segments, including Kaplan Higher Education, Kaplan Supplemental Education, Kaplan International, Television Broadcasting, and others. Kaplan International covers professional training, post-secondary education, and language training businesses outside the US. The Higher Education segment acts as a service provider to higher education institutions, while Supplemental Education encompasses the company’s test preparation programs and other continuing education businesses.
Graham Holdings Company (NYSE:GHC) holds a competitive market edge due to various factors, including commitment to a diversified portfolio, significant earnings growth, and consistent dividend payouts. It also has strong financials and reported a total revenue of $1.2 billion in fiscal Q3 2024, reflecting a 9% growth from $1.1 billion in the third quarter of 2023. This growth was attributed to increased revenues in education, television broadcasting, healthcare, and automotive segments.
Moreover, Graham Holdings Company (NYSE:GHC) also authorized repurchasing up to 500,000 additional shares, highlighting its dedication to returning capital to shareholders. The company takes the seventh spot on our list of the 12 best education stocks to buy in 2025.
6. Coursera, Inc. (NYSE:COUR)
Number of Hedge Fund Holders: 28
Coursera, Inc. (NYSE:COUR) offers an online learning platform connecting educators, learners, and institutions. It provides accessible and relevant educational content through its platform and operates in the Consumer, Enterprise, and Degrees segment. It offers an elaborate learning credentials and content list, including courses, guided projects, clips, specializations, and degrees. Its offerings span Coursera.org for Individuals, Coursera for Enterprise, Coursera for Business, Coursera for Campus, and Coursera for Government.
The company has attained significant milestones in the past few years, such as completing its IPO, growing its revenue from less than $100 million in 2017 to nearly $700 million by the end of 2024 while attaining profitability, rapidly expanding its platform, products, and offerings, partnering with more than 200 new universities and industry leaders, and growing its number of registered learners by over 100 million.
It added 26 million new learners from across the globe in 2024, the highest since 2020, taking its learner base to 168 million by the end of the year. It also added nearly 250 new paid enterprise customers, ending the year with more than 1600 governments, businesses, and campuses that use Coursera, Inc.’s (NYSE:COUR) platform. The company plans to continue this momentum by investing in domains such as product innovation by leveraging AI to redefine customer experience.
5. Grand Canyon Education, Inc. (NASDAQ:LOPE)
Number of Hedge Fund Holders: 28
Grand Canyon Education, Inc. (NASDAQ:LOPE) is an education services company that provides technology and academic services to colleges and universities. These services include program and curriculum, internal administration, learning management system (LMS), support, infrastructure, class scheduling, and skills and simulation lab sites. It also offers counseling services and support, ranging from field experience counseling to admissions services and financial aid.
The company is increasingly growing in popularity and reported strong fiscal Q4 2024 results. Its online enrollment growth reached 7.1% in hybrid growth. Grand Canyon Education, Inc. (NASDAQ:LOPE) is also continually producing strong retention rates while simultaneously investing heavily in initiatives for its university partners. The company has rolled out 148 new programs since the pandemic across 10 colleges, tied directly to labor market opportunities, which is a significant factor in its popularity.
Grand Canyon Education, Inc. (NASDAQ:LOPE) ranks fifth on our list of the top education stocks to buy in 2025. Its median price target of $177.16 implies an upside of 14.02% from current levels. On February 21, BMO Capital raised the company’s price target to $202 from $181, keeping an Outperform rating on the shares.
4. Adtalem Global Education Inc. (NYSE:ATGE)
Number of Hedge Fund Holders: 32
Adtalem Global Education Inc. (NYSE:ATGE) provides healthcare education in the US, with programs ranging from medicine and nursing to social and behavioral sciences, veterinary medicine, and more. Its segments are divided into Chamberlain, Walden, and Medical and Veterinary. The Chamberlain segment offers certificate and degree programs in health and nursing, while the Medical and Veterinary segment encompasses the same in the medical and veterinary post-secondary education industry. The Walden segment offers a range of degree and certificate programs, including nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice.
The company reported a 14% revenue growth in fiscal Q2 2025 to $448 million, reflecting its growing profitability. Total enrollment grew for the 11th consecutive quarter, rising 11.6% year-over-year in fiscal Q2 2025. Adtalem Global Education Inc. (NYSE:ATGE) serves over 91,000 students. Its adjusted EBITDA margin expanded by 440 basis points in the quarter, driving a 47% increase in adjusted earnings per share.
Adtalem Global Education Inc. (NYSE:ATGE) is also innovating to expand its impact and focus on its commitment to academic quality and inclusive access to education. The effects of this commitment are visible in the company’s operations. For instance, Chamberlain University rose 11.5% to another record level of total enrollment. Similarly, its BSN Online Program, offered in 36 states, now has 44 clinical hub locations in metropolitan areas with an objective of more than 65 hubs by the end of its fiscal year 2026.
3. TAL Education Group (NYSE:TAL)
Number of Hedge Fund Holders: 32
TAL Education Group (NYSE:TAL) is a holding company that offers after-school tutoring programs for primary and secondary school students in China. It covers core academic subjects like physics, chemistry, English, political science, Chinese, biology, history, and more. It also offers consulting services for studies abroad and preparation courses for major standardized tests. With major operations in China and Hong Kong, TAL Education Group (NYSE:TAL) operates under the brands Xueersi, Mobby, Firstleap, Izhikang and Shunshun Liuxue.
The company exceeded analyst expectations through its tech-driven and diverse strategies, resulting in a 62.4% year-over-year revenue growth to $606.4 million in fiscal Q3 2025, surpassing the $540 million estimate. Its non-GAAP net income touched $38.6 million, reflecting a significant recovery from the prior-year period’s loss of $1.9 million.
This significant growth can be attributed to TAL Education Group’s (NYSE:TAL) investments in technological solutions such as AI-powered learning tools that are gaining public attention and approval. The company’s AI-learning devices remained one of its fastest-growing business lines, with positive user feedback and market recognition. Its losses from operations also dropped to $1.9 million from $10.2 million in the prior-year period, reflecting advancements in efficiency.
2. Stride, Inc. (NYSE:LRN)
Number of Hedge Fund Holders: 33
Stride, Inc. (NYSE:LRN) provides an educational platform to deliver online learning to students across the US. It offers various services, including professional skills training, K-12 education, career learning, and talent development.
The company reported a revenue of $587.2 million in fiscal Q2 2025 compared to $504.9 million in the prior year period. Income from operations reached $125.1 million, while net income touched $96.4 million, compared with $66.8 million in the prior year period. Stride, Inc. (NYSE:LRN) also grew its free cash flow, reaching $208.6 million. This growth was attributed to continued growth in the company’s enrollments and margin improvements. As of December 31, 2024, Stride, Inc. (NYSE:LRN) has cash and cash equivalents and marketable securities of around $738.1 million, compared with $714.2 million reported on June 30, 2024.
It is raising revenue and adjusted operating forecast for the full fiscal year 2025, with management expecting revenue in the range of $2.320 billion to $2.355 billion. Stride, Inc. (NYSE:LRN) ranks second on our list of the top education stocks to buy in 2025.
1. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Number of Hedge Fund Holders: 36
New Oriental Education & Technology Group Inc. (NYSE:EDU) is a China-based company that delivers educational programs, services, and products to students via online learning platforms and its physical network of schools and learning centers. Its operations are divided into four primary segments: the Educational Services and Test Preparation Courses segment, the Online Education and Other Services segment, the Overseas Study Consulting Services segment, and the Educational Materials and Distribution segment.
In fiscal Q2 2025, New Oriental Education & Technology Group Inc. (NYSE:EDU) reported 19.4% year-over-year revenue growth, reflecting its strong operations. Total net revenues increased 31.3% year-over-year, excluding revenues generated from East Buy private label products and live streaming business. Analysts are bullish on the stock due to its sustained healthy top-line growth of 19.4%. Its median price target of $48.78 implies an upside of $39.80% from current levels.
The company’s new educational business initiatives also maintained strong momentum in the quarter, with revenue growth of 42.6% year over year. These initiatives include New Oriental Education & Technology Group Inc.’s (NYSE:EDU) non-academic tutoring courses offered in around 60 cities and attracted around 994,000 student enrollments in fiscal Q2 2025. Similarly, the company’s intelligent learning system and devices were adopted in around 60 cities, with approximately 261,000 active paid users in the quarter.
Overall, EDU ranks first among the 12 best education stocks to buy in 2025. While we acknowledge the potential of education stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EDU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
