Why Strategic Education Stock Is Back on Investors’ Radar

Strategic Education (STRA) has attracted fresh attention after a recent 8.7% share price move, linked to upbeat Wall Street views on its Education Technology Services segment and growing interest around Sophia Learning and corporate partnerships.

The recent 8.7% share price move sits on top of a steady build in momentum, with a 30 day share price return of 4.24%, a 90 day return of 5.85% and a year to date gain of 6.67%, even though the 1 year total shareholder return is 9.80% lower and longer term 3 and 5 year total shareholder returns of 4.69% and 8.70% point to a more moderate overall journey. Upcoming fourth quarter results and the 2026 Annual Meeting, together with attention on Sophia Learning and corporate partnerships, appear to be shaping how investors weigh growth potential against past returns.

If this kind of education and training story has you thinking more broadly, it could be a good moment to scan fast growing stocks with high insider ownership for other stocks catching fresh attention.

With the share price recently moving, annual revenue at about $1.26b, net income of $114.04m and a market price that sits below analyst targets and one intrinsic estimate, you have to ask: is there still an opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 18.9% Undervalued

With Strategic Education trading at $83.82 against a narrative fair value of $103.33, the gap between current pricing and modeled potential is hard to ignore.

• Strategic Education is benefiting from strong enrollment growth, particularly through its corporate partnerships, which could drive continued revenue growth as employer-affiliated enrollment increased by 16% in 2024.

Curious how steady top line assumptions, rising profit margins and a richer earnings multiple combine to support that higher value? The full narrative lays out the step by step financial blueprint behind this pricing gap.

Result: Fair Value of $103.33 (UNDERVALUED)

However, that upside story can unravel if new Australia or New Zealand regulations limit international students, or if higher scholarships keep dragging down revenue per U.S. student.

Build Your Own Strategic Education Narrative

If you look at the numbers and reach a different conclusion, or simply want your own angle on the story, you can build a custom view in minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Strategic Education.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.