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NYSE:EDU: a strong growth stock preparing for the next leg up?.

By Mill Chart

Last update: May 14, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted NEW ORIENTAL EDUCATIO-SP ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NYSE:EDU

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:EDU has received a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 720.51% over the past year.
  • EDU shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.72%.
  • Based on estimates for the next years, EDU will show a very strong growth in Earnings Per Share. The EPS will grow by 79.44% on average per year.
  • Based on estimates for the next years, EDU will show a very strong growth in Revenue. The Revenue will grow by 23.07% on average per year.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Unpacking NYSE:EDU's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:EDU has received a 6 out of 10:

  • The Debt to FCF ratio of EDU is 0.01, which is an excellent value as it means it would take EDU, only 0.01 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of EDU (0.01) is better than 89.06% of its industry peers.
  • EDU has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • EDU has a Debt to Equity ratio of 0.00. This is in the better half of the industry: EDU outperforms 70.31% of its industry peers.
  • Looking at the Current ratio, with a value of 1.95, EDU is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
  • EDU has a better Quick ratio (1.91) than 70.31% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:EDU was assigned a score of 5 for profitability:

  • EDU's Return On Assets of 4.33% is fine compared to the rest of the industry. EDU outperforms 75.00% of its industry peers.
  • EDU has a Return On Equity of 8.04%. This is in the better half of the industry: EDU outperforms 71.88% of its industry peers.
  • EDU has a better Return On Invested Capital (6.68%) than 75.00% of its industry peers.
  • EDU has a better Profit Margin (7.72%) than 75.00% of its industry peers.
  • With a decent Operating Margin value of 9.61%, EDU is doing good in the industry, outperforming 70.31% of the companies in the same industry.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:EDU exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, EDU also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 87.19, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of EDU contains the most current fundamental analsysis.

Our latest full technical report of EDU contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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NEW ORIENTAL EDUCATIO-SP ADR

NYSE:EDU (5/29/2024, 7:04:00 PM)

Premarket: 83.5 -0.94 (-1.11%)

84.44

+3.06 (+3.76%)

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