Shares of Grand Canyon Education (LOPE) have been strong performers lately, with the stock up 7.6% over the past month. The stock hit a new 52-week high of $217.29 in the previous session. Grand Canyon Education has gained 32.4% since the start of the year compared to the 10.7% move for the Zacks Consumer Discretionary sector and the 12.8% return for the Zacks Schools industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2025, Grand Canyon Education reported EPS of $1.53 versus consensus estimate of $1.37.
For the current fiscal year, Grand Canyon Education is expected to post earnings of $9.07 per share on $1.1 in revenues. This represents a 12.81% change in EPS on a 6.85% change in revenues. For the next fiscal year, the company is expected to earn $10.09 per share on $1.17 in revenues. This represents a year-over-year change of 11.25% and 6%, respectively.
Valuation Metrics
Though Grand Canyon Education has recently hit a 52-week high, what is next for Grand Canyon Education? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Grand Canyon Education has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.6X. On a trailing cash flow basis, the stock currently trades at 23.3X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 1.59. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Grand Canyon Education fits the bill. Thus, it seems as though Grand Canyon Education shares could still be poised for more gains ahead.
How Does LOPE Stack Up to the Competition?
Shares of LOPE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is TAL Education Group (TAL). TAL has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. TAL Education Group beat our consensus estimate by 40.00%, and for the current fiscal year, TAL is expected to post earnings of $0.39 per share on revenue of $3.06 billion.
Shares of TAL Education Group have gained 5.5% over the past month, and currently trade at a forward P/E of 28.97X and a P/CF of 49.82X.
The Schools industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LOPE and TAL, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Grand Canyon Education, Inc. (LOPE): Free Stock Analysis Report TAL Education Group (TAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
