Shares of online education Stride (NYSE:LRN)
jumped 20% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street's expectations and provided upbeat guidance for the upcoming quarter.
Online education Stride (NYSE:LRN) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 7.5% year on year to $631.3 million. Guidance for next quarter’s revenue was better than expected at $630 million at the midpoint, 1.9% above analysts’ estimates. Its non-GAAP profit of $2.50 per share was 7.8% above analysts’ consensus estimates.
Online education Stride (NYSE:LRN) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 7.5% year on year to $631.3 million. Guidance for next quarter’s revenue was better than expected at $630 million at the midpoint, 1.9% above analysts’ estimates. Its non-GAAP profit of $2.50 per share was 7.8% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Shareholders of Stride would probably like to forget the past six months even happened. The stock dropped 50.2% and now trades at $68.80. This was partly due to its softer quarterly results and might have investors contemplating their next move.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets.
These doubts have certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 5.3% gain has fallen behind the S&P 500’s 11.7% rise.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Discover STRIDE INC (LRN), an undervalued stock with strong fundamentals, low P/E ratios, robust profitability, and solid financial health for value investors.
