In this article, we will take a look at some of the best education stocks to buy right now.
If there is one sector that is continuously evolving, it’s the education sector. As the demand for online classrooms, practical skills, and lifelong learning rises, new investment opportunities emerge.
The online education stocks, which are often overlooked, received a boost from the lockdown period and have since surged. By the end of the decade, the U.S. education sector is anticipated to reach $3.1 trillion, a market that was just $1.4 trillion in 2021. The value of this sector can further be highlighted through the WallStreetZen ratings, according to which education is ranked 17th among the 145 tracked industries.
As stated by Brian Smilek, an analyst at JPMorgan,
“The COVID19 pandemic accelerated the secular shift toward online education, & GSV estimates online penetration will grow 5x at a 30% CAGR through 2026, implying 11% penetration, or a $1T TAM.”
Our Methodology
We have computed a list of 10 Best Education Stocks to Buy Right Now via Stock Analysis’ and Wall Street Zen’s lists of education stocks. The stocks were then shortlisted based on their returns and upside potential, ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s 2Q2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Gaotu Techedu Inc. (NYSE:GOTU)
Number of Hedge Fund Holdings: 12
During the first quarter, Vanguard Group Inc. reduced its holding in the shares of Gaotu Techedu Inc. (NYSE:GOTU) by 1.8%. According to the recent disclosure with the SEC, the firm now owns 5,456,660 shares of the company’s stock following the sale of 99,426 shares, which represents 2.10% of its ownership.
Recently, Gaotu Techedu Inc. (NYSE:GOTU) delivered a stellar performance that many believe is more than just a one-time occurrence. During the earnings call, much of this success was attributed to innovative offerings, improved teaching service quality, and the expansion into fresh traffic platforms. This growth momentum, which is here to stay, is powered by AI.
The company has made significant efforts to enhance its customer service response through AI assistant interactions, particularly automated Q&As and more accurate user profiling. Scale-driven operating leverage impacts and the sustained optimization of marketing expenditure are two of the many reasons to believe in Gaotu Techedu Inc. (NYSE:GOTU).
Gaotu Techedu Inc. (NYSE:GOTU) is a Chinese data-driven education company that was incorporated in 2014. The company’s core offerings include learning services, educational content, and digitalized learning products.
9. American Public Education, Inc. (NASDAQ:APEI)
Number of Hedge Fund Holdings: 17
According to the latest Form 13F filing with the SEC, 4D Advisors LLC lifted its holdings in American Public Education, Inc. (NASDAQ:APEI), making the stock its 20th largest holding. With the addition of 135,000 shares, the investment firm now owns about 0.75% of the company.
If we look at the company’s performance, it has been nothing short of stellar. American Public Education, Inc. (NASDAQ:APEI) delivered a one- and three-year returns of 104.53% and 221.79%, respectively, in contrast to the S&P 500 (^GSPC)’s return of 17.77% and 65.16%. Even during its earnings call, the management highlighted its focus on financial stability, margin expansion, and innovation.
The company is making efforts to simplify the business overall through the transition of APUS, Rasmussen, and Hondros into a single institution. This would not only mean improved access and student persistence but also mission-aligned educational experiences. Indeed, American Public Education, Inc. (NASDAQ:APEI) is a compelling story driven by its military partnerships and acquisition initiatives.
American Public Education, Inc. (NASDAQ:APEI), based in West Virginia, operates through the American Public University System, Rasmussen University, and Hondros College of Nursing segments. Aimed at powering purpose, the company provides postsecondary education and career learning through online and campus-based channels.
