3 Online Education Stocks Investors Should Study

A study conducted by Global Market Insights (GMI) concluded that the global e-learning market will grow 20% annually over the next seven years and cross the $1 trillion mark by 2028. Even faster growth is forecast for the Asia Pacific region and India.

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This suggests that the surge in online learning demand caused by Covid-19 only kicked what is expected to be a multiyear shift in the way we learn.

As high-speed Internet access reaches more corners of the world, more people will be able to access e-learning platforms to advance their education. More courses will be taken, more degrees will be earned, and more employee training will be completed through remote learning experiences as the decade progresses.

The anticipated growth has industry incumbents and new challenges clamoring to get a piece of the pie. Product offerings, teacher hiring, and technological advancements are expanding rapidly.

You wouldn’t know this is a hot area, however, by how online education stocks are performing. The education and training services group is down another 20% year-to-date after plunging more than 70% from its 2021 pandemic-fueled peak.

The industry has fallen woefully out of favor amid a flood of competition and tough year-over-year comparisons. This has presented an opportunity for investors who comprehend the long-term growth trajectory in e-learning.

Gaining knowledge about which stocks to buy should involve studying these three companies.

What is a Good Education Technology Stock?

2U, Inc. (NASDAQ: TWOU) is a provider of cloud-based software that enables non-profit colleges and universities to educate students remotely. In addition to this technology, it offers a range of undergraduate and graduate degree programs of their own.

The company’s bread and butter though is helping educational institutions convert their course materials and expertise into online learning solutions that address the needs of the modern college student. 2U is best known for its free-to-degree programs that let students earn degrees and certificates without stepping foot on a college campus.

Last week 2U reported a 9% increase in first-quarter revenue but a net loss that nearly doubled to $18.5 million. A 35% increase in costs was largely related to one-time, non-cash charges but also increasing operating expenses to support growth plans.

2U’s growth initiatives are built around the integration of the recently acquired edX. Over time, the company aims to expand its 4,000-plus offerings to assert itself as the preferred digital transformation partner for worldwide universities.

What Does Adtalem Global Education Do?

Adtalem Global Education Inc. (NYSE: ATGE) is the company behind a half dozen online, on-campus, and hybrid universities focused on healthcare. Chamberlain University offers nursing programs while three separate schools offer degree and non-degree programs in medicine, including veterinary medicine. Then there’s the recently acquired Walden University which has added over 100 online certificate and degree programs in healthcare.

The company’s expanding portfolio is helping healthcare employers meet their critical workforce needs at a time when front line medical professionals have evolved into everyday heroes. Although student enrollments have slowed down of late due to Covid-related challenges, over time Adtalem expects that demand for healthcare professionals will outrun supply as has historically been the case. The rising demand is expected to draw more people to the profession and in turn create steady demand for the company’s diverse healthcare offerings.

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