STRIDE INC (NYSE:LRN) – A Strong Contender in Affordable Growth Stocks

STRIDE INC (NYSE:LRN) stands out as an affordable growth stock based on our screening criteria. The company demonstrates solid growth potential while maintaining reasonable valuations, along with strong profitability and financial health. Below, we break down why LRN fits this investment profile.

Growth Prospects

LRN has shown impressive growth in key financial metrics:

• Earnings Per Share (EPS) grew 50.47% over the past year, with a 5-year average growth rate of 39.31%.
• Revenue increased by 14.90% in the last year, supported by a consistent historical growth rate of 14.97%.
• Future EPS growth is projected at 22.07%, while revenue is expected to expand by 9.53% annually.

These figures indicate strong momentum, positioning LRN favorably among peers in the Diversified Consumer Services industry.

Valuation

Despite its growth, LRN remains reasonably priced:

• The P/E ratio of 23.87 is slightly below the industry average, making it cheaper than 63% of competitors.
• The forward P/E of 20.57 is also lower than most industry peers.
• A low PEG ratio suggests the stock is attractively valued relative to its earnings growth potential.

Profitability & Financial Health

LRN excels in profitability and financial stability:

• Return on Equity (21.12%) and Return on Assets (13.56%) rank among the best in the industry.
• Operating margins (16.49%) and profit margins (13.10%) reflect efficient operations.
• The company maintains a strong balance sheet with a current ratio of 5.61 and minimal debt concerns.

For a deeper look, review the full fundamental analysis of LRN.

Our Affordable Growth screener lists more stocks with similar characteristics, updated daily.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.