5 Best Education Stocks to Buy In 2022

2. Bright Horizons Family Solutions Inc. (NYSE:BFAM)

Number of Hedge Fund Holders: 23

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is an American company that provides childcare and early education services to employees of different companies. These include both in home and center based childcare. The company is headquartered in Newton, Massachusetts.

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a company with an eye on the long term through multi year contracts, and its latest earnings results revealing that enrollment grew by as much as 3%, tuition rates by 4%, and its tuition centers by 2%. The firm focuses on deep relationships with its customers, that lets it retain pricing powers.

Additionally, Bright Horizons Family Solutions Inc. (NYSE:BFAM) has also acquired roughly 400 childcare centers in the U.S., the U.K., and the Netherlands over this decade, which has enabled it to grow its footprint in the developed economies. Its revenue guidance of 20% growth for the fiscal year 2022 suggests that the firm is recovering from the coronavirus shock. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 23 had held a stake in Bright Horizons Family Solutions Inc. (NYSE:BFAM).

Jack Woodruff’s Candlestick Capital Management is Bright Horizons Family Solutions Inc. (NYSE:BFAM)’s largest investor. It owns 450,000 shares that are worth $38 million.

Artisan Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a leading provider of corporate-sponsored childcare and early education centers in the US. The company primarily provides services through multi-year contracts with employers who offer childcare, early education and other dependent care benefits to employees. Over the course of our investment campaign, which began in 2014, the company’s capital efficient business model has experienced a high degree of revenue growth, and it has made several accretive acquisitions. Unfortunately, it remains uncertain whether the company’s network of centers is well matched to the working patterns of parents post-COVID. Namely, work from home could hinder growth in corporate-sponsored childcare centers. These variables, coupled with shares approaching our PMV estimate, led us to end our investment campaign.”