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 combines solid growth prospects with reasonable valuation, strong profitability, and healthy financials. Here’s why LRN may be worth considering for investors seeking growth at a reasonable price.

Growth Prospects

• Past Performance: LRN has demonstrated strong growth, with Earnings Per Share (EPS) increasing by 50.47% over the past year and an annualized growth rate of 39.31% over several years. Revenue growth has also been robust, rising 14.90% in the last year and 14.97% annually over a longer period.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 22.07% and revenue by 10.82% annually in the coming years. While slightly slower than past growth, these figures remain well above average.

Valuation

• P/E Ratio: At 22.35, LRN’s P/E ratio is slightly below the industry average, making it relatively cheaper than many peers.
• Forward P/E: The forward P/E of 19.26 is also below the S&P 500 average, suggesting the stock is reasonably priced given its growth trajectory.
• PEG Ratio: A low PEG ratio indicates that LRN’s valuation accounts for its expected earnings growth, reinforcing its affordability.

Profitability & Financial Health

• High Profit Margins: LRN boasts a 13.10% profit margin and a 16.49% operating margin, outperforming most competitors.
• Strong Returns: Return on Assets (13.56%) and Return on Equity (21.12%) are well above industry averages.
• Solid Balance Sheet: With a current ratio of 5.61 and quick ratio of 5.53, the company has ample liquidity. Debt levels are manageable, with a Debt/Equity ratio of 0.33.

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

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Disclaimer

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