Now that secondary and postsecondary schools are closed indefinitely, it is time for the online educators to shine. Even if school resumes in the fall, some fearful parents and students will opt for homeschooling.
There is also a chance school will not resume in the fall or the spring, forcing students at all levels to learn online. Zoom, Instructure, Chegg and Grand Canyon Education are four stocks that will benefit from the online learning and homeschooling trends.
Online learning proves that much more effective when students can watch the lesson explained in a visual medium, meaning video streams greatly enhance web-based education. However, the majority of the publicly traded companies in the online education industry do not provide instruction through video streams.
Enter ZM. ZM will likely be used for years, if not decades into the future as that many more students learn from the safety and comfort of home. Though ZM has plenty of competition, its superior branding combined with its bevy of fancy features make it that much more appealing to the mainstream.
The POWR Ratings have ZM rated as an A – Strong Buy overall and also in every single component but for Industry Rank in which it scores a B. ZM is the top ranked stock of 49 stocks in the Technology – Services industry. Look for online educators to partner with ZM to round out their web-based learning services in the months and years ahead.
Wouldn’t it have been nice to have a live tutor available in a moment’s notice when you were in school? CHGG provides this service through its online learning platform piped directly into students’ homes. With a quarterly growth rate of 26.7%, CHGG has serious potential.
The POWR Ratings score CHGG as an A in all components but for its Buy and Hold Grade in which it scores a B. CHGG’s 6-month and 1-year charts might make you think you missed the boat on this stock yet there is still the potential for CHGG to reach new heights thanks to its 30% long-term growth rate.
CHGG will likely prove particularly popular amongst the homeschooling crowd as its tutor services alleviate the burden from overworked and overstressed parents attempting to bring home the bacon while siimultaneously educating their children. Look for CHGG to gradually move upwards as the online learning trend blossoms.
Teachers and students alike need an efficient and well-organized online learning platform during these hectic times. INST provides such a platform in the form of its Canvas interface.
INST makes it easy for teachers to present learning information, post tests/quizzes to the web and provide students with feedback. Take a look at the reviews of the company’s Canvas interface and you will find few complaints. If anything, Canvas provides teachers and students with too many options to sort through.
If INST could implement a video component to its service, this stock would be unstoppable. The POWR Ratings have INST rated as a B, meaning Buy. INST has an A Peer Grade and Bs in the Trade Grade and Buy and Hold Grade categories.
Grand Canyon Education (LOPE)
It might not be long until the majority of colleges shift to the web. Even if college campuses reopen in the fall, some students will choose to transfer to comparably safe online learning universities such as LOPE. LOPE provides web-based college and university courses.
LOPE has steadily climbed upward from a low of $59 on March 18. There is still considerable upside for LOPE as the average TipRanks’ analyst has a price target of $105 for this stock.
The POWR Ratings have LOPE ranked sixth of 26 stocks in the Outsourcing – Education industry with a B Trade Grade and Peer Grade. LOPE revenue is up 12% in the prior quarter alone.
Now that LOPE has completely shifted to online learning, the stock is set to rise to new heights as students far and wide embrace home learning opportunities. Look for LOPE to move toward its 52-week high of $132.12 in the months ahead.
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ZM shares . Year-to-date, ZM has gained 152.84%, versus a -7.84% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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