Stride Navigates Setback While Poised For Growth With Low Volatility

Stride, Inc. (NYSE:LRN) is one of the 11 Best Long Term Low Risk Stocks to Invest in.

The company’s shares are currently trading at a low price following the contract termination by Gallup-McKinley County Schools.

Stride, Inc. (NYSE:LRN) is an education technology and services company. Based in Virginia, the company operates fully remotely and offers K–12 curriculum, software, and career learning programs primarily online. The company serves both K–12 and adult learners through proprietary and third-party content and learning platforms, placing importance on lifelong education.

Gallup-McKinley County Schools announced on May 17, 2025, that it has terminated the contract with Stride, Inc. (NYSE:LRN), effective June 30, 2025. The School Board President, Christopher Mortensen, made the following statement during the announcement.

“We are taking this step to protect our students, uphold academic standards, and meet our obligations under state and federal law.”

Following the termination, the company’s share price tumbled. As of July 22, 2025, Stride, Inc. (NYSE:LRN)’s one-month performance has declined by 11.06% reaching $129.74. Meanwhile, CNN indicates an analyst consensus rating of Buy on the stock and a 1-year median price target of $165.00, suggesting confidence in the company’s growth potential.

Despite this contract loss, Stride, Inc. (NYSE:LRN) remains a low volatility pick with a 0.11 beta and 22.08% EPS growth forecast, with a strong long-term upside.

While we acknowledge the potential of LRN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure. None.