Why New Oriental Education (EDU) Is Among Tuesday’s Worst Performers?

We recently published a list of 10 Stocks Nosedive, Defying Broader Optimism. In this article, we are going to take a look at where New Oriental Education & Technology Group Inc. (NYSE:EDU) stands against other stocks nosedive, defying broader optimism.

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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

Shares of New Oriental Education & Technology Group Inc. (NYSE:EDU) fell by 23.25 percent on Tuesday to close at $46.71 apiece after BofA Securities reduced its price target for the company by 17 percent to $68.6 from $82.9.

BofA Securities has revised its non-GAAP Earnings Per Share (EPS) estimates for fiscal years 2025 and 2026, reducing them by 12 percent and 17 percent, respectively. The price target has also been adjusted, reflecting a valuation based on fiscal year 2026 and a lower multiple, given expectations of slower growth. Despite these revisions, BofA Securities maintains a positive outlook on New Oriental Education’s stock, citing an attractive risk-reward profile for investors.

In other news, New Oriental Education & Technology Group Inc. (NYSE:EDU) reported financial results that fell short of analyst estimates. The company’s adjusted earnings per American depositary share for the recent fiscal second quarter was $0.22, missing the consensus estimate of $0.32.

Overall, EDU ranks 2nd on our list of stocks nosedive, defying broader optimism. While we acknowledge the potential of EDU as an investment, 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.

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