Q2 Earnings Outperformers: Adtalem (NYSE:ATGE) And The Rest Of The Education Services Stocks

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the education services industry, including Adtalem (NYSE:ATGE) and its peers.

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 8 education services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.

Adtalem (NYSE:ATGE)

Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.

Adtalem reported revenues of $457.1 million, up 11.5% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a strong quarter for the company with full-year revenue guidance beating analysts’ expectations.

Adtalem scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 15.3% since reporting and currently trades at $137.46.

Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it’s free.

Best Q2: Lincoln Educational (NASDAQ:LINC)

Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $116.5 million, up 13.2% year on year, outperforming analysts’ expectations by 0.5%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18% since reporting. It currently trades at $19.46.

Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.

Perdoceo Education (NASDAQ:PRDO)

Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.

Perdoceo Education reported revenues of $209.6 million, up 25.7% year on year, exceeding analysts’ expectations by 1.3%. It was a satisfactory quarter as it also posted a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.

Interestingly, the stock is up 14.1% since the results and currently trades at $32.88.

Read our full analysis of Perdoceo Education’s results here.

Grand Canyon Education (NASDAQ:LOPE)

Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $247.5 million, up 8.8% year on year. This result topped analysts’ expectations by 2.8%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and EPS guidance for next quarter exceeding analysts’ expectations.

The stock is up 20.5% since reporting and currently trades at $207.60.

Read our full, actionable report on Grand Canyon Education here, it’s free.

Universal Technical Institute (NYSE:UTI)

Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $204.3 million, up 15.1% year on year. This number surpassed analysts’ expectations by 2%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Universal Technical Institute had the weakest full-year guidance update among its peers. The stock is down 18.3% since reporting and currently trades at $27.30.

Read our full, actionable report on Universal Technical Institute here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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