Should you consider STRIDE INC (NYSE:LRN) for high growth investing?

Our stock screener has flagged STRIDE INC (NYSE:LRN) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:LRN for potential movement.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, LRN scores 7 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• When comparing the yearly performance of all stocks, we notice that LRN is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, LRN also shows a nice and consistent pattern of rising prices.
• LRN is part of the Diversified Consumer Services industry. There are 71 other stocks in this industry. LRN outperforms 92% of them.
• LRN is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so LRN slightly outperforms the market at the moment.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.

For an up to date full technical analysis you can check the technical report of LRN

How does the Setup look for LRN

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for LRN is 7:

Besides having an excellent technical rating, LRN also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 121.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 121.65, a Stop Loss order could be placed below this zone.

Growth Examination for LRN

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. LRN has earned a 6:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), LRN highlights its ability to generate increasing profitability, showcasing a 31.82% growth.
• Over the past year, LRN has demonstrated 51.26% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• LRN has experienced 39.51% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• The q2q revenue growth of 16.31% of LRN highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• The sales growth of LRN is accelerating: the current Q2Q growth of 16.31% is above the previous quarter Q2Q growth of 14.77%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 2 quarters in a row.
• Over the past 3 months, analysts have adjusted their EPS Estimate for LRN with a 4.1% change. This highlights the evolving outlook on the company's EPS potential.
• LRN has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Financial Strength & Profitability

• The operating margin of LRN has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• LRN has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• With a favorable trend in its free cash flow (FCF) over the past year, LRN demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• LRN showcases a robust Return on Equity (ROE) of 20.46%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt/Equity ratio of 0.35, LRN demonstrates prudent financial management.

Market Strength

• The Relative Strength (RS) of LRN has been consistently solid, with a current 96.17 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.