Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
STRIDE INC (LRN) excels with strong revenue growth, high profitability, and exceptional capital returns, making it a top pick in the Caviar Cruise quality investing screen.
Stride’s third quarter results were marked by strong revenue growth and a notable expansion in operating margin, yet the market reacted negatively. Management pointed to robust demand for online education and double-digit enrollment increases, but also acknowledged execution challenges around technology platform upgrades. CEO James Rhyu stated, “We made a couple of strategic decisions that we believe will pay dividends over the longer term, but limited our growth in the short term.” Technical implementation issues led to a less positive customer experience, resulting in higher withdrawal rates and lower-than-expected conversion.
Shares of online education Stride (NYSE:LRN)
fell 50.8% in the afternoon session after the company's weak financial forecast overshadowed its third-quarter results. While Stride beat Wall Street's expectations for the third quarter, with revenue up 12.7% year-over-year to $620.9 million and adjusted earnings per share of $1.52 significantly ahead of estimates, investors focused on the company's grim outlook. Management's revenue guidance for the upcoming quarter came in 3.4% below analysts' projections. Furthermore, the full-year revenue forecast was also lowered, falling short of consensus estimates. This disappointing guidance suggested a slowdown ahead, which spooked the market and sent shares sharply lower.
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Stride remains the leader in its online learning niche, but will have to rebuild trust with customers -- and the market -- to return to its growth stock days.
Online education Stride (NYSE:LRN) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.7% year on year to $620.9 million. On the other hand, next quarter’s revenue guidance of $630 million was less impressive, coming in 3.4% below analysts’ estimates. Its non-GAAP profit of $1.52 per share was 20.4% above analysts’ consensus estimates.
Stride (LRN) offers affordable growth with strong EPS & revenue increases, high profitability, and a reasonable valuation in the expanding EdTech sector.
