In this piece, we will take a look at the five best education stocks to buy in 2022. For more stocks, take a look at 10 Best Education Stocks to Buy In 2022.
5. Adtalem Global Education Inc. (NYSE:ATGE)
Number of Hedge Fund Holders: 18
Adtalem Global Education Inc. (NYSE:ATGE) is a workforce solutions company that provides degree and non degree programs such as bachelor’s, master’s, and doctoral degrees to healthcare, nursing, and veterinary students. The firm is headquartered in Chicago, Illinois, the United States.
Adtalem Global Education Inc. (NYSE:ATGE) is one of the few stocks that have rallied throughout the course of this year despite the bloodbath in all major indexes. Year to date, the company’s shares have appreciated by 25% on the stock market. The company’s Chamberlain University is the largest nursing school in America, and it has the lowest student loan default ratio among American universities.
Adtalem Global Education Inc. (NYSE:ATGE)’s fiscal year 2022 saw its revenue grow by 53% and earnings per share by 40%. Insider Monkey studied 895 hedge fund portfolios for this year’s second quarter to discover that 18 had owned a stake in the company.
Out of these, John W. Rogers’ Ariel Investments is Adtalem Global Education Inc. (NYSE:ATGE)’s largest investor. It owns 178 million shares that are worth $178 million.
4. Grand Canyon Education, Inc. (NASDAQ:LOPE)
Number of Hedge Fund Holders: 23
Grand Canyon Education, Inc. (NASDAQ:LOPE) provides a host of services to American universities and colleges. These include academic services, learning management services, faculty training, class scheduling, and others. The firm is headquartered in Phoenix, Arizona.
Grand Canyon Education, Inc. (NASDAQ:LOPE) has one of the strongest gross margins in the industry, with the latest reading placing the metric at 55.5%, nearly two percentage points higher than the five year average. Additionally, the firm’s management is optimistic about future share price growth, as despite $76 million in second quarter operating cash flow, it chose to buy back $128 million worth of shares.
Grand Canyon Education, Inc. (NASDAQ:LOPE)’s shares have dropped by only 3% year to date, holding their ground against broader market sell offs. Insider Monkey’s 895 hedge fund survey for this year’s second quarter revealed that 23 had owned the company’s shares.
Out of these, Cliff Asness’ AQR Capital Management is Grand Canyon Education, Inc. (NASDAQ:LOPE)’s largest investor. It owns 394,101 shares that are worth $36 million.
3. Stride, Inc. (NYSE:LRN)
Number of Hedge Fund Holders: 23
Stride, Inc. (NYSE:LRN) provides proprietary and third party curricula, online learning, software systems, and educational services to K-12 schools in the United States. The firm is headquartered in Reston, Virginia.
Stride, Inc. (NYSE:LRN) is one of the largest K-12 technology learning solutions in the U.S. The company’s fiscal fourth quarter earnings saw its revenue grow by 15%, which was impressive not only on its own but particularly so since 2021 had proved to be a record year for Stride, Inc. (NYSE:LRN) in the aftermath of the coronavirus pandemic.
Stride, Inc. (NYSE:LRN)’s shares are up by a whopping 39% year to date, as they build upon the impressive earnings results. By the end of this year’s June quarter, 23 out of the 895 hedge funds polled by Insider Monkey had invested in the firm.
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.”
1. Chegg, Inc. (NYSE:CHGG)
Number of Hedge Fund Holders: 25
Chegg, Inc. (NYSE:CHGG) is an American company that offers students a host of different services such as help with homework assignments, textbooks, plagiarism detection scans, citation generation, and writing feedback. The firm is headquartered in Santa Clara, California.
Chegg, Inc. (NYSE:CHGG)’s revenue has more than doubled over the past five years, with the latest reading of $776 million growing by more than 200% over the $255 million in revenue that it brought in 2017. Its subscribers have also grown by more than fourfold during the same time period, from 2.2 million to 7.8 million.
Needham upgraded Chegg, Inc. (NYSE:CHGG)’s share price rating to Buy in September 2022, as it stated that the company is expanding well internationally and maintaining its American user base at the same time. As part of their investment portfolios, 25 out of the 895 hedge funds surveyed by Insider Monkey during 2022’s June quarter had invested in the firm.
Chegg, Inc. (NYSE:CHGG)’s largest investor is Jim Simons’ Renaissance Technologies which owns 2.4 million shares that are worth $46 million.
Disclosure: None. You can also take a look at 10 Best Delivery Stocks to Invest In and 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
