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- 1 With the growing market size and plenty of scope, Edtech companies are becoming the apple of investors’ eyes.
- 2 While so many firms are cropping up in this sector, some are grabbing more attention due to their lucrative aspects.
The globally-changing landscape of education has escalated the value of Edtech companies. While it already emerged as a promising domain, its pace got accelerated after the pandemic. Technology has enabled students around the globe to receive world-class education right in their homes. The organizations providing these services are not just gaining huge popularity but also high valuations.
As a result, the prices of their stocks are rising to great proportions. They are becoming potential investment options for every investor who’s eyeing profits in the short as well as the long term. With loads of growth prospects, these holdings are becoming valuable additions to US investors’ portfolios.
Edtech Stocks With Great Chances of Profitability
With a student-centric approach and high-tech facilities, these companies are transforming the education sector. At the same time, they’re emerging as valuable stock options for investors.
1. Chegg (NYSE: CHGG)
Students know Chegg for providing exceptional support through astute products and services. The subscription-modeled platform offers e-learning material along with printed textbooks and various courses. With a growing user base, the company is championing the markets too. Its market cap is $1,131,101,184 and its P/E ratio is 7.
2. GSX Techedu (NYSE: GSX)
The tech-driven education company focuses on tutoring services. It operates exclusively in China and includes all K-12 academic subjects. It includes mathematics, physics, chemistry, biology history, geography, political science, English, and Chinese. With a market cap of $ 6,921,349,632, the company has produced significant profits. It has emerged as a promising investment for every investor in this niche.
3. Houghton Mifflin Harcourt Company (NYSE: HMHC)
Houghton offers assorted solutions that involve professional learning, intervention, supplemental, and curriculum support globally. Operating under the Heinemann brand name, the firm covers all disciplines and tasks in students’ academic journey. With a market capitalization of $2,685,341,696 and a P/E ratio of 12.5403, it has a PEG ratio of 1.33. It is a favorable investment for many.
4. Stride (NYSE: LRN)
Stride encompasses learning from kindergarten to 12th grade (K-12) globally in the US. It allows the students to study and track the progress of their learning too. The services include individualized learning and proprietary along with third-party curriculum. With a market cap of $1,575,197,000, a P/E ratio of 14.1444, and a PEG ratio of 0.5927, it yielded great profits for its investors so far.
5. American Public Education (NYSE: APEI)
APEI focuses on campus-based and online postsecondary education along with career learning. It has three different subsidiaries which are Hondros College of Nursing, Rasmussen University, and American Public University System. Generating high revenues in the past few years, the firm has maintained a market cap of $83,100,232 and a PEG ratio of 1.6364.
Conclusion
The rise of Edtech companies has opened a new avenue for investors worldwide. Since the number of students opting for learn-from-home is increasing, the success ratio of these ventures is also elevating. Hence, Edtech stocks are becoming a source of huge profits and liquidity. They are giving every investor a chance to secure long-winding gains along with so many other advantages. Undoubtedly, these shares are helping investors ensure profits and beat the odds.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
