Is Career Learning Shaping the Path for Stride's Growth?

Stride, Inc. LRN has been expanding its position in online and blended education by placing greater emphasis on Career Learning programs. These offerings are designed to equip middle and high school students with workforce-ready skills while also keeping them on track academically. With demand for school choice continuing to rise, Career Learning has become a key area of focus as the company builds a differentiated platform in the competitive education market. 

In fiscal 2025, Career Learning segment’s total revenues rose 27.4% year over year, supported by a 33% year-over-year increase in enrollments. The company served more than 96,300 students in this segment, underscoring its growing contribution to overall performance. General Education remains a larger revenue source, but the faster growth of Career Learning indicates a shift in the company’s long-term revenue mix. This shift highlights the potential of career-focused programs to act as a structural growth driver. 

The company has also continued to invest in career pathways, including tutoring initiatives and programs that connect students to practical resources and opportunities. These steps not only enhance outcomes for families but also deepen engagement with school districts and state partners. Favorable funding trends at the state level add further support to this trajectory. 

As demand for career-oriented education strengthens, Career Learning appears well-positioned to shape Stride’s growth path. While broader education services remain stable, the momentum in this segment indicates it could be central to the company’s next phase of expansion.

LRN Stock’s Price Performance vs. Other Market Players

Shares of this Virginia-based education company have trended upward 36.9% 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 58.6% and 71.2%, 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 16.25, as evidenced by the chart below. The overvaluation of the stock compared with the industry peers indicates the 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 18.11 and 19.43, respectively.

Earnings Estimate Revision of LRN

LRN’s earnings estimates for fiscal 2026 have moved north over the past 60 days to $8.58 per share. The revised estimated figure for fiscal 2026 implies year-over-year growth of 5.9%.

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

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

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