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Chart of the Day: Stride - Making New Highs
Author's Note: Stride (LRN) was last featured on 11/6/23 when it closed at $55.87, its gained 50% since then.
The Chart of the Day belongs to the education and training services company Stride (LRN). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 7/16 the stock gained 15.96%.
Stride, Inc., a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was incorporated in 1999 and is headquartered in Reston, Virginia.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 98.55+ Weighted Alpha
- .28 - 60 month Beta (New Today)
- 105.82% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 19.59% in the last month
- Relative Strength Index 71.11%
- Technical support level at $82.44
- Recently traded at $83.77 with 50 day moving average of $72.09
Fundamental Factors:
- Market Cap $3.57 billion
- P/E 17.56
- Revenue expected to grow 6.00% this year and another 6.00% next year
- Earnings estimated to increase 9.00% this year and an additional 12.10% next year and continue to compound at an annual rate of 20.00% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 5 strong buy and 1 hold opinion on the stock
- Analysts' price targets are between $74 and $94
- Value Line gives the stock its above average rating of 2 with price targets between $40 and $99 and a mid-point of $70 about a 18% decrease - strange projection for a stock rated above average
- CFRAs MarketScope rates the stock a buy
- MorningStar rates the stock an average 3 star with Fair Value at $73.76 or 11% overvalued
- 7,410 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
