5 Best Education Stocks To Buy In 2024

In this article, we discuss 5 best education stocks to buy in 2024. If you want to read our discussion on the education industry, head directly to 11 Best Education Stocks To Buy In 2024. 

5. Grand Canyon Education, Inc. (NASDAQ:LOPE)

Number of Hedge Fund Holders: 27

Grand Canyon Education, Inc. (NASDAQ:LOPE) provides education services to colleges and universities in the United States. The company offers a range of services including technology, academic support, counseling, marketing, communication, and back-office services. On February 13, Grand Canyon Education, Inc. (NASDAQ:LOPE) reported a Q4 non-GAAP EPS of $2.77 and a revenue of $278.3 million, outperforming Wall Street estimates by $0.05 and $3.07 million, respectively. Revenue for the period increased 7.6% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Grand Canyon Education, Inc. (NASDAQ:LOPE), compared to 16 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 277,148 shares worth $36.5 million. 

Diamond Hill Long-Short Fund made the following comment about Grand Canyon Education, Inc. (NASDAQ:LOPE) in its Q4 2022 investor letter:

“Other bottom contributors included our long positions in Alphabet and Meta and our short position in Grand Canyon Education, Inc. (NASDAQ:LOPE). Post-secondary education services company Grand Canyon Education (LOPE) is benefiting from a positive inflection in online enrollment at Grand Canyon University (GCU), LOPE’s main client. This positive inflection may reflect some counter cyclical demand for education as people anticipate a slowing economy and therefore return to school to finish or obtain a degree. Shares responded positively to this inflection, which is expected to similarly increase net online enrolment in 2023’s first half. Longer term, we have doubts about LOPE’s growth prospects in a crowded field and as many for-profit universities (including LOPE) face challenges — and heightened regulatory scrutiny — shifting to a non-profit business model.”

4. John Wiley & Sons, Inc. (NYSE:WLY)

Number of Hedge Fund Holders: 27

John Wiley & Sons, Inc. (NYSE:WLY) is a global research and education company operating in three segments – Research, Academic, and Talent. It provides scientific, technical, medical, and scholarly journals, along with related content and services to learned societies, individual researchers, professionals, and libraries. On December 14, 2023, John Wiley & Sons, Inc. (NYSE:WLY) declared a $0.35 per share quarterly dividend, in line with previous. The dividend was distributed to stakeholders on January 11.

According to Insider Monkey’s fourth quarter database, 27 hedge funds held stakes in John Wiley & Sons, Inc. (NYSE:WLY), compared to 19 funds in the last quarter. GLG Partners is the largest stakeholder of the company, with 451,143 shares worth $14.3 million.

3. Stride, Inc. (NYSE:LRN)

Number of Hedge Fund Holders: 30

Stride, Inc. (NYSE:LRN), a technology-based education service company, specializes in providing online curriculum, software systems, and educational services for individualized learning in K-12 education. Stride, Inc. (NYSE:LRN) offers a comprehensive package of systems, services, and products to support virtual or blended public schools, individual online courses, and supplemental educational products. It is one of the best education stocks to invest in. 

On January 23, Stride, Inc. (NYSE:LRN) announced its financial results for the second fiscal quarter ended December 31, 2023. The company posted a GAAP EPS of $1.54 and a revenue of $504.87 million, outperforming Wall Street estimates by $0.22 and $6.82 million, respectively. 

According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Stride, Inc. (NYSE:LRN), compared to 23 funds in the prior quarter. 

2. TAL Education Group (NYSE:TAL)

Number of Hedge Fund Holders: 32

TAL Education Group (NYSE:TAL) is a Chinese company that specializes in providing K-12 after-school tutoring services. The company offers tutoring in various academic subjects such as mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. It is one of the best education stocks for 2024. On January 25, TAL Education Group (NYSE:TAL) reported its financial results for the third quarter of fiscal year 2024 ended November 30, 2023. The company’s revenue increased 60.5% year-over-year to $373.5 million, outperforming Wall Street estimates by $43.51 million. 

According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on TAL Education Group (NYSE:TAL), compared to 25 funds in the prior quarter. Tiger Pacific Capital is the leading position holder in the company, with 9.8 million shares worth $124 million. 

Here is what Tao Value has to say about TAL Education Group (NYSE:TAL) in its Q4 2021 investor letter:

“Looking at the value destruction, TAL Education (TAL) is one of the most painful losses. Although the company is part of the “Mindful Compounder” bucket, it impaired by 95%. If anything, it is a heavy price paid for learning that stock returns are driven by more than business and market factors, but also societal factors. I personally think having 4 out of the 5 top value destructions being recently started position in Chinese stocks is a bit biased, as the market may have overreacted the most to anything China-related recently.”

1. New Oriental Education & Technology Group Inc. (NYSE:EDU)

Number of Hedge Fund Holders: 39

New Oriental Education & Technology Group Inc. (NYSE:EDU), based in China, provides private educational services under the New Oriental brand. The company operates in four segments – Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Educational Materials and Distribution. New Oriental Education & Technology Group Inc. (NYSE:EDU) is one of the top education stocks to invest in. 

On January 24, New Oriental Education & Technology Group Inc. (NYSE:EDU) reported its financial results for the second fiscal quarter of 2024 ended November 30, 2023. The company announced a non-GAAP EPADS of $0.29 and a revenue of $869.6 million, outperforming Wall Street estimates by $0.01 and $58.28 million, respectively. 

According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on New Oriental Education & Technology Group Inc. (NYSE:EDU), compared to 34 funds in the prior quarter. Liu Xuan’s Keystone Investors is the leading stakeholder of the company, with 1.4 million shares worth $104.75 million. 

Ariel Global Fund made the following comment about New Oriental Education & Technology Group Inc. (NYSE:EDU) in its Q2 2023 investor letter:

“We added a new investment position inNew Oriental Education & Technology Group Inc. (NYSE:EDU), a leading after school tutoring program in China. Although the Chinese government banned K-12 academic after school tutoring, the company was able to leverage its expertise in course content quality control and standardized tutoring processes to quickly reposition itself as a leader of non-academic after school tutoring. Furthermore, we anticipate the company’s strong brand and the entrepreneurial acumen of its founder, Michael Yu, will create additional opportunities for expansion as a comprehensive educational service provider.”

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