Legacy Education Inc. (LGCY): A Bull Case Theory

We came across a bullish thesis on Legacy Education Inc. (LGCY) on Twitter by Kyle Adams. In this article, we will summarize the bulls’ thesis on LGCY. Legacy Education Inc. (LGCY)’s share was trading at $8.05 as of Jan 16th. LGCY’s trailing P/E was 15.57 according to Yahoo Finance.

Healthcare biology microscope

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Legacy Education (LGCY) has seen a remarkable 122% increase since its IPO, reflecting its strong growth trajectory. The company operates colleges that focus on meeting the high demand for healthcare workers, a sector experiencing a significant shortage. Legacy’s enrollment has grown at a 25% CAGR over the last four years, and this momentum is expected to continue, supported by recent positive commentary from management. In the most recent quarter, the company grew its top line by over 30%, posting a $0.21 EPS. With more than $20 million in cash, Legacy is well-positioned to fuel both organic and inorganic growth. The company is also expanding by adding a new college, which will increase its enrollment from around 2,500 to over 3,000 students. With strong insider buying by 10%+ owner Robert Derose, Legacy appears to have significant growth potential, making it a compelling investment.

Legacy Education Inc. (LGCY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held LGCY at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of LGCY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LGCY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.