Is Stride's Investment in Tutoring the Key to Growth Retention?

Stride, Inc. LRN has been offering tutoring services since 2022, under the name Stride Tutoring, which was then rebranded in 2024 as K12 Tutoring. Through its K12 Tutoring service portfolio, the company offers personalized online tutoring services to school students, providing them with an additional boost toward academic gains.

The company’s tutoring services are gaining traction, as evidenced in fiscal 2025, with several states in the United States recognizing the importance of tutoring in shaping children throughout K-12 education. To enhance its offerings and increase demand patterns, LRN is currently engaged in integrating AI into its tutoring model, amongst other academic models. Moreover, it has other investments planned as well for this platform over the next few years, aiming to offer better teacher tools and tutor experiences to students.

Regarding tutor services, on March 24, 2025, Stride’s K12 Tutoring collaborated with Lake Forest School District in Delaware to offer innovative and tailored educational solutions to students. This strategic transaction is another example highlighting Stride’s efforts in fueling its growth prospects through tutoring services.

Currently, Stride is primarily focused on providing dedicated tutoring for all second and third-grade students, with a primary emphasis on the core skill of reading. This highlights the expansion of service offerings under the K-12 Tutoring model. With ongoing favorable market trends, LRN remains well-positioned for long-term incremental growth and a diversified revenue stream through this service offering, alongside others, such as career-focused and adult learning programs.

LRN Stock’s Price Performance vs. Other Market Players

Shares of this Virginia-based education company have trended upward 55.6% year to date, outperforming the Zacks Schools industry, the broader Zacks Consumer Discretionary sector and the S&P 500 index.

Sharing space with Stride, other education firms, including Adtalem Global Education ATGE and American Public Education, Inc. APEI, seem to be benefiting from the favorable market demand backdrop for online educational services. So far this year, the share price performance of Adtalem and American Public gained 45.7% and 43.1%, respectively.

Stride’s Valuation Trend

Stride stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 18.57, as evidenced by the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market, given the favorable trends backing it up.

Notably, Adtalem and American Public are currently trading at a forward 12-month P/E ratio of 16.82 and 16.75, respectively.

Earnings Estimate Revision of LRN

LRN’s earnings estimates for fiscal 2026 have moved north over the past 30 days to $8.58 per share. The revised estimated figure for fiscal 2026 implies year-over-year growth of 5.9%.

LRN stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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