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New Oriental (EDU) Moves 10.5% Higher: Will This Strength Last?

By Zacks Equity Research | October 16, 2025, 10:09 AM

New Oriental Education (EDU) shares rallied 10.5% in the last trading session to close at $58.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.

Strong momentum in core education segments, including test prep and overseas consulting, along with rapid growth in new initiatives like non-academic tutoring and intelligent learning systems, is aiding EDU. Enhanced product capabilities and operational efficiency further support long-term growth.

This educational services provider is expected to post quarterly earnings of $1.74 per share in its upcoming report, which represents a year-over-year change of +8.8%. Revenues are expected to be $1.52 billion, up 5.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For New Oriental, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EDU going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

New Oriental is part of the Zacks Schools industry. Strategic Education (STRA), another stock in the same industry, closed the last trading session 0.6% higher at $79.72. STRA has returned -2.7% in the past month.

Strategic Education's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.3. Compared to the company's year-ago EPS, this represents a change of +12.1%. Strategic Education currently boasts a Zacks Rank of #3 (Hold).

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New Oriental Education & Technology Group, Inc. (EDU): Free Stock Analysis Report
 
Strategic Education Inc. (STRA): Free Stock Analysis Report

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

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