STRIDE INC (NYSE:LRN) - A Strong Growth Stock With Reasonable Valuation

STRIDE INC (NYSE:LRN) was identified as an affordable growth stock by our screener. The company combines solid growth prospects with reasonable valuation metrics, while maintaining strong profitability and financial health. Below, we break down why LRN stands out in these areas.

Growth Prospects

• Earnings Growth: LRN’s earnings per share (EPS) grew by 50.47% over the past year, with a five-year average growth rate of 39.31%.
• Revenue Expansion: Revenue increased by 14.90% in the last year and has grown at an average annual rate of 14.97% over the past five years.
• Future Expectations: Analysts project EPS growth of 21.50% and revenue growth of 10.82% annually in the coming years.

Valuation

• P/E Ratio: At 21.62, LRN’s P/E ratio is below the industry average of 26.50, making it relatively cheaper than many peers.
• Forward P/E: The forward P/E of 18.52 is also below the S&P 500 average, suggesting a reasonable valuation.
• PEG Ratio: A low PEG ratio indicates that LRN’s earnings growth compensates for its valuation, making it attractive for growth investors.

Profitability & Financial Health

• Strong Margins: LRN boasts a 13.10% profit margin and 16.49% operating margin, outperforming most competitors.
• High ROIC: With a return on invested capital (ROIC) of 14.55%, the company efficiently generates profits from its investments.
• Solid Balance Sheet: A current ratio of 5.61 and quick ratio of 5.53 indicate strong liquidity, while a manageable debt-to-equity ratio of 0.33 reflects financial stability.

For a deeper look at LRN’s fundamentals, review the full fundamental analysis report.

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

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.