Delving into STRIDE INC (NYSE:LRN)'s high Growth Prospects.

STRIDE INC (NYSE:LRN) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:LRN.

Technical analysis of LRN

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall LRN gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, LRN is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, LRN did better than 98% of all other 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 97% 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.
• In the last month LRN has a been trading in the 118.13 - 137.55 range, which is quite wide. It is currently trading near the high of this range.

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

How does the Setup look for LRN

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. LRN scores a 8 out of 10:

LRN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 142.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 127.51, a Stop Loss order could be placed below this zone.

High Growth Analysis for LRN

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. LRN was assigned a score of 6 for growth:

Earnings Momentum

• The recent financial report of LRN demonstrates a 31.82% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• LRN has achieved 51.26% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• LRN has achieved 39.51% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• LRN has experienced 16.31% q2q revenue growth, indicating a significant sales increase.
• 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 acceleration happened 2 quarters in a row.
• LRN has seen a 4.1% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• 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.

Profitability & Financial Strength

• LRN has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• In the past year LRN has expanded its Profit Margin, which demonstrates increasing profitability.
• LRN has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• With a solid Return on Equity (ROE) of 20.46%, LRN exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• LRN's Debt/Equity ratio of 0.35 suggests a healthy balance between debt financing and shareholder equity.

Market Strength

• The Relative Strength (RS) of LRN has consistently been strong, with a current 98.06 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

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.