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Chicago, IL – April 25, 2025 – Zacks Equity Research shares Stride LRN as the Bull of the Day and Freshpet FRPT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SoFi Technologies, Inc. SOFI, JPMorgan JPM and Bank of America BAC.
Here is a synopsis of all five stocks.
Stride is a Zack Rank #1 (Strong Buy) that is an American education company that provides online and blended education programs for students from kindergarten through 12th grade, as well as career learning for adults.
While many stocks have struggled this year, LRN has recently traded all-time highs. Not only is this relative strength bullish, but estimates are ticking higher before the company reports earnings next week.
Formerly known as K12 Inc., Stride is a leading provider of online and blended education solutions. The company offers full-time, tuition-free online public-school programs in partnership with state and local school districts across the U.S. For families seeking alternatives, Stride also operates private online schools on a tuition basis.
In addition to its K–12 offerings, Stride provides career learning programs designed to prepare both high school students and adult learners for jobs in fields like information technology, healthcare, and business. The company develops and licenses its own digital curriculum, platforms, and assessment tools, giving it a unique position in the online education space.
The company is valued at $6.1 billion and has a Forward PE of 20. The stock has Zacks Style Scores of “A” in Growth and Momentum. However, LRN has an “C” score in Value.
In its most recent quarter, Stride delivered strong results in which they beat expectations and raised full-year guidance.
The company reported Q2 earnings of $2.03 per share, surpassing the consensus estimate of $1.97, on revenue of $587 million, which also exceeded the expected $572 million.
Stride raised its Q3 revenue outlook to $585–$600 million, with adjusted operating income projected between $130 million and $140 million. For full-year fiscal 2025, the company now expects revenue between $2.32 billion and $2.36 billion, up from prior guidance of $2.23 billion to $2.30 billion.
Enrollment growth continues to be a major driver, with average enrollments rising 19.4% year-over-year to 230,600 students—marking the third consecutive year of strong growth.
While the adult learning segment showed softness, with revenue declining $6.1 million to $19.8 million, this was more than offset by robust performance in the company’s core education programs.
The stock reacted positively, moving higher by 10% after the headline release. From there, the stock continued to make new highs and is trading up over 16% from the earnings report.
Stride, Inc. price-eps-surprise | Stride, Inc. Quote
Analysts took earnings estimates higher after earnings, but there has been some recent bullish movement over the last week. This could be a positive sign with earnings on April 29th.
For the current quarter, estimates have gone from $1.99 to $2.09 over the last 90 days. But over the last 7 days they have gone from $2.01 to $2.09, a jump of 4%.
For the current year, estimates have been taken higher over the last 90 days. Here we see a 5% move higher, with numbers going from $6.64 to $6.96.
Next year we see positive momentum over the last 7 days, with estimates going from $7.31 to $7.62
Since earnings, there have been a handful of firms reiterating their buy ratings:
After earnings BMO Capital Markets reiterated its Outperform and $139 target.
BMOs targets have already been hit and the stock looks like its having trouble the the $140-145 area. The stock will see a big reaction after earnings so the next 10% will likely be determined next week.
The $160 level is at 161.8% and another solid quarter the bulls should look to take profits there.
If there is selling into the print, we can look at the following support levels:
21-day: $132
50-day: $131
200-day: $103
Fibonacci Support levels reside at $103(50%) and $94 (61.8%).
Stride’s impressive earnings momentum, accelerating enrollment growth, and strong technical posture all point to a company hitting its stride—pun intended.
As one of the top-ranked Zacks stocks, with high marks for both growth and momentum, LRN continues to deliver where it matters most: consistent execution and upward revisions.
With earnings just around the corner and analysts raising their estimates, the stock is positioned for another potential breakout. Investors looking for exposure to the digital education trend may find LRN a compelling long-term opportunity, especially if it clears near-term resistance and heads toward its next Fibonacci target.
Freshpet is a Zacks Rank #5 (Strong Sell) that is a pet food company that specializes in making fresh, refrigerated pet food for dogs and cats. Freshpet's products are made with real meat, vegetables, and other whole ingredients, and they are kept refrigerated to preserve freshness without the use of preservatives.
The stock has taken a big hit since making all-time highs earlier this year. A combination of bad regulation news and a miss on EPS has the stock over 50% lower over the last three months.
Unfortunately, the current situation does not look like a buy the dip opportunity. Investors interested in this name should remain patient.
Freshpet was founded in 20024 and employs 1,300.
The company sells its products through a network of company-owned branded refrigerators, the Freshpet Fridges, as well as through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online.
FRPT is valued at $3.5 billion and has a Forward PE of 57. The stock holds Zacks Style Scores of “A” in Growth, but “F” in both Momentum and Value.
The selling trend in Freshpet’s stock began shortly after the U.S. FDA’s January 17, 2025 announcement requiring pet food manufacturers covered by the PCAF rule to reanalyze their food safety plans to address Highly Pathogenic Avian Influenza (H5N1) as a foreseeable hazard.
This regulation specifically impacts companies using uncooked or unpasteurized animal products—like Freshpet, which prides itself on minimally processed, fresh ingredients such as raw poultry and other refrigerated meats.
Investors likely interpreted this as a material risk, since complying with the new rule could lead to increased production costs, additional regulatory burdens, and potential supply chain disruptions.
These concerns may have undermined confidence in Freshpet’s growth strategy and profitability outlook, triggering a wave of selling in the stock.
Freshpet's stock continued to move lower following its Q4 earnings report in late February. Despite showing solid year-over-year improvements, the company failed to meet investor expectations and raised concerns about near-term execution.
The company reported adjusted earnings of $0.36 per share, missing the $0.44 consensus estimate, and revenue of $262.7 million, just shy of the expected $263 million.
While Freshpet posted strong margin expansion, its initial FY25 revenue guidance of $1.18–1.21 billion came in slightly below the $1.21 billion estimate.
Additionally, its projected capital expenditures of around $250 million for FY25 raised concerns about cash burn and the pace of investment.
Since reporting earnings analysts have taken down estimates aggressively.
For the current quarter, numbers have dropped 54% over the last 90 days, from $0.24 to $0.11.
Looking at the current year, estimates have declined 13% in that same period, down from $1.50 to $1.30.
For the next year, projections have been adjusted downward by 13% over the last two months, now at $11.12 from $14.73.
The stock is trading near 2025 lows, down 50% on the year. Price is below the 21-day moving average, which is currently at $80.50.
The 50-day MA is currently at $92 and the 200-day MA is at $128.
Investors should be patient and avoid the name until the bulls can get that 21-day back. Price has not been above that moving average since February 5th.
Freshpet’s sharp decline in recent months underscores the risks of high-growth, high-valuation stocks facing unexpected regulatory pressures and execution challenges.
While the long-term vision remains ambitious, the near-term picture is clouded by heightened regulatory scrutiny, underwhelming earnings, and falling analyst estimates. Until Freshpet can demonstrate consistent execution and regain investor confidence, this is a name best left on the watchlist.
Shares of SoFi Technologies, Inc. have declined 24% year to date compared with the industry’s 16% decline.
This sharp downturn raises the question: Does this present a compelling buy-the-dip opportunity, or should investors exercise caution? Let’s find out.
SoFi’s land-and-expand strategy remains a core strength, provided it is effectively managed. The company has a strong track record of executing this ambitious growth approach. By offering a diverse range of financial services, SoFi attracts a growing customer base. This, in turn, incentivizes more partners to integrate their offerings within SoFi’s expanding ecosystem. The result is a robust cross-selling dynamic that enhances overall profitability.
Given this, it is unsurprising that management maintains an aggressive revenue growth outlook for 2025. SOFI’s increasing ability to cross-sell financial products is expected to drive significant EPS expansion, which is crucial for long-term shareholder value creation. Even in a conservative scenario, management projects a 23% revenue increase, with EPS surging 67%. This substantial discrepancy between revenue growth and bottom-line expansion underscores SoFi’s ability to leverage economies of scale.
SoFi’s management remains focused on broadening its suite of financial services. In the fourth quarter of 2024, the company introduced several initiatives, including credit cards, alternative investments, and the subscription-based SoFi Plus. Additionally, SoFi may strengthen its cryptocurrency exposure by adding costing and clearing services, asset-backed lending, and other crypto-related financial products. This strategic move is particularly relevant in the current regulatory climate, as President Trump has expressed ambitions to position the United States as the world’s crypto capital.
Galileo, SoFi’s B2B financial services platform, is a pivotal growth driver. By enabling seamless payment and lending integrations, it positions SoFi as a leading player in the embedded finance market. This sector is projected to grow at a robust 21.3% CAGR through 2033, fueled by increasing demand for integrated financial solutions. Galileo's ability to attract high-profile clients and diversify SoFi’s revenue streams strengthens the company's long-term outlook. The platform’s adoption by other financial firms further solidifies SoFi’s market position and enhances its ability to capture additional market share.
SoFi’s financials reinforce its bullish long-term thesis. In the fourth quarter of 2024, the company achieved a 19% year-over-year increase in net sales, with a remarkable 594% surge in net income. This impressive profitability growth highlights SoFi’s strong operating leverage, driven by its ability to scale efficiently. The addition of 785,000 new members in the quarter — the highest absolute increase recorded — enhances the company’s cross-selling potential while reducing customer acquisition costs.
All three business segments contributed to revenue growth in the fourth quarter. Lending and Technology Platform revenues grew 18% and 6% year over year, respectively, while the Financial Services segment surged an impressive 84%.
The Zacks Consensus Estimate for SOFI’s 2025 earnings stands at 25 cents per share, reflecting a substantial 66.7% year-over-year increase.
Similarly, projected revenues for 2025 are estimated at $3.2 billion, marking a 23% increase from the previous year.
Despite its strong fundamentals, SoFi faces notable challenges. As a financial services company, its performance is highly sensitive to macroeconomic conditions, particularly Federal Reserve policy and broader economic health. With the potential for prolonged high interest rates and the risk of a recession due to Trump’s proposed tariff hikes, the economic environment remains uncertain.
Competition is another critical factor. SoFi enjoys a first-mover advantage in the U.S. fintech space, but it faces intense rivalry from traditional banking giants like JPMorgan and Bank of America. Additionally, aggressive fintech challengers like Revolut are expanding their footprint, with Revolut planning to secure a U.S. banking license.
While SoFi’s stock has pulled back in recent months, it still appears overvalued relative to its peers. The forward 12-month Price/Earnings ratio stands at 36.11, significantly above the industry average of 14.6. This suggests that even after the decline, investors are pricing in substantial future growth. However, such a premium valuation raises downside risk if SoFi fails to meet elevated expectations.
Given SoFi’s strong growth trajectory, expanding ecosystem, and improving financial performance, the long-term investment case remains compelling. However, considering macroeconomic uncertainties and the stock’s relatively high valuation, a prudent approach would be to adopt a hold strategy at current levels. Investors may consider waiting for further price corrections before adding positions, ensuring a more attractive entry point while mitigating downside risks. A wait-and-watch approach will allow investors to reassess valuation levels and economic conditions before making new commitments to the stock.
SOFI currently carries a Zacks Rank #3 (Hold). 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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