Stride (LRN) might be a good candidate to ride the momentum. Why? Because you strong margin, low-debt capital structure, reasonable valuation, and strong momentum. Here is some data.
Revenue Growth: 17.9% LTM and 12.6% last 3 year average.Long-Term Profitability: About 14.2% operating cash flow margin and 12.9% operating margin last 3 year average.Strong Momentum: Currently in top 10 percentile of stocks in terms of "trend strength" - our proprietary momentum metric.Room To Run: Despite its momentum, the stock is trading 14% below its 52-week high.While revenue growth helps, this selection is all about riding momentum with quality - which we judge by margins (reflective of pricing power / strong business model) and capital structure (not too debt heavy).
LRN stock provides proprietary and third-party online curriculum, software, and career learning services to support individualized K-12 education and skill development for various industries globally.
LRNS&P MedianSectorConsumer Discretionary-IndustryEducation Services-PS Ratio2.63.3PE Ratio21.824.0 LTM* Revenue Growth17.9%5.2%3Y Average Annual Revenue Growth12.6%5.3% LTM* Operating Margin17.4%18.6%3Y Average Operating Margin12.9%17.8%LTM* Op Cash Flow Margin18.0%20.3%3Y Average Op Cash Flow Margin14.2%19.8% DE Ratio8.8%20.9%
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
