Are you looking for an educational stocks list? The education sector is one of the most reliable means of investment; while the entire world has to settle and adjust to the effects of COVID-19, the education sector has been able to fare well financially. We say this because while the education system ended up shifting online, it could significantly cut down operating costs. As a result, many educational institutions could cut down on their regular energy consumption, amongst other things significantly. In addition, some education companies like Chegg experienced a boom in their sales as many students turned to these platforms looking for online support.
Educational Stocks List to Invest In
This pandemic has caused the education sector to rethink its teaching strategies. As a result, they’ve been able to achieve breakthroughs in online teaching, self-taught learning, etc. The way school is done now is very different from how most of us went to school.
And it may never go back to “normal”. Which could be a good or bad thing. We won’t know for sure for probably a while. Online school has been hard on kids, parents, and teachers alike. However, there are some who thrived online.
And companies that help kids with learning online have thrived as well. Their services are now necessary. As a result, they’ve become stocks to watch as well.
Below we’ve got our educational stocks list with companies that have proven to be profitable in the post-pandemic world.
Chegg has become a top search for students that are looking for educational support materials online. The company has a paid subscription model that provides students with numerous services like:
- Help with homework
- Math problem solving
- Online tutors
- Online skills-based courses
The company was initially founded in 2005 as a textbook rental company, but over the past couple of years, the company has managed to grow into a digital company and provides study guides and textbooks.
The company saw a 31% increase in revenue in the fourth quarter of 2020. Earnings also increased by 40% in the same year; the stock had been pretty stagnant since mid-2019, so while it did crash when the coronavirus came in. It was able to make up for its losses quickly.
Chegg is also great at maintaining its subscribers since it has an affordable monthly price of less than $20 and scores highly in customer satisfaction ratings.
K12 On the Educational Stocks List
K12 is an education management organization that offers virtual learning to its consumers; students can attend these virtual public schools as an alternative to local public schools or homeschooling.
The company has also demonstrated a strong EPS growth for most long-term investors, and stride has grown EPS by 36% per year.
Schools can also partner with K12 for blended learning, which uses virtual content to supplement what students learn in the classroom.
K12 was able to benefit from the global shift towards virtual learning platforms. The company’s net income for 2020 grew by 171.8%, and its revenue for the third quarter of 2021 was 52.5% higher year-over-year.
In other news, K12 also recently paid $165 million in cash to buy a Denver-based coding boot camp, Galvanize.
This acquisition is beneficial because it allows K12 to adopt a hybrid learning model for students, making it an attractive investment.
Pearson is the largest education stock company globally; the company provides a wide variety of services to schools, colleges, and universities. Although the company charges around $15 per month for access to all Pearson textbooks, the company also has more than 2m registered users.
The company has operations in nearly 200 countries all around the world and employs more than 20,000 people. Pearson gains its revenues from five main business operations: virtual learning, higher education, English language learning, workforce skills, and assessment and qualifications.
The stock price has recently taken a hit because of the covid 19 surge and a drop in student enrollment in community colleges. This translates into an excellent buy opportunity for investors as the stock is currently undervalued.
Educational Stocks List Includes Zoom
Zoom has risen to fame during and post the pandemic. This platform is often the collaboration medium of choice for colleges and universities. Zoom rose to quick popularity when schools and institutions were looking for a medium through which they could conduct or attend classes.
Zoom gets 50% of its revenue from monthly payers, and the company aims to convert these monthly buyers into annual contracts. While the company rose to fame during the pandemic, zoom is far from a pandemic stock, and virtual learning and telecommunication are here to stay.
The Zoom software gained fame because of its ease of use and simplicity. The company is also negotiating contracts with cloud computing service providers, and the future outlook for this stock is high.
Stride is a technology-based internet company that provides its clients with things like proprietary and third-party online curriculum, educational services and software systems, and virtual learning platforms.
The company was formed to help create a uniform curriculum for homeschooled children. However, the company’s mission has grown beyond that.
The company now focuses on personalized learning, helping students to reach their full potential.
The company has multiple technology-based services that help it facilitate student growth virtually, making it an attractive option for many.
In addition, many people have started viewing online learning as a convenient and safe option which is why stride can be considered a good long term investment.
And why they’re on our educational stocks list.
Tal Education Group
Based in China, the Tal education group focuses on providing its clients with tutoring services across many different subjects. Students can choose from three different formats; students can choose to learn in a small class format, personalized premium services, or online courses.
The stock is stable with average market movements throughout the day. Currently, the stock is on the lower end of short-term trends, translating into a buying opportunity for investors looking for capital gain.
According to UNICEF’s latest figures, around 61.6% of the world’s population has been impacted by school closures. An estimated 224 million children were out of school in 2020. There have been massive global efforts to develop technology to the point where it can support most educational functions.
Funds placed in educational stocks are a form of long-term investment in future productivity and competitiveness. As the proportion of the educated workforce increases, the economy thrives, and therefore educational stocks are a great long-term investment as their impact can expand beyond capital gain and dividend growth.
The Bottom Line
Covid has changed a lot when it comes to education. As a result, keep this educational stocks list on your watch list. Then you can keep your eye on how they move. And when you see a setup, you can add it to your portfolio.