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.
8. Lincoln Educational Services Corporation (NASDAQ:LINC)
Number of Hedge Fund Holdings: 21
American Century Companies Inc. has lifted its holdings in Lincoln Educational Services Corporation (NASDAQ:LINC) through the purchase of 51,650 shares during the first quarter. The firm’s investment in the company is valued at $1,572,000, which translates to an ownership of 0.31%.
A key strategy for expansion is directing Lincoln Educational Services Corporation (NASDAQ:LINC), a company that analysts describe as “a growth/GARP (growth at a reasonable price) play.” Although net cash has reduced, the future monetary gains from expansion efforts towards new campuses and new programs can’t be underestimated.
Keeping in view the company’s past performance, Lincoln Educational Services Corporation (NASDAQ:LINC) is nothing short of excellence. While the S&P 500 (^GSPC) delivered a return of 65.16%, LINC reported a return of 205.20%. We can only expect these numbers to grow, as the decline in demand for white-collar professionals due to AI is likely to lead to an increased preference for more economical offerings by the company.
Lincoln Educational Services Corporation (NASDAQ:LINC), based in New Jersey, offers several career-oriented postsecondary education services to both working adults and high school graduates. This 1946-formed company is focused on enhancing student success.
7. Perdoceo Education Corporation (NASDAQ:PRDO)
Number of Hedge Fund Holdings: 28
During the first quarter, Caisse DE Depot ET Placement DU Quebec purchased a new stake in the shares of Perdoceo Education Corporation (NASDAQ:PRDO), valued at approximately $1,400,000. With the acquisition of 55,600 shares, the institutional investor owns about 0.08% of PRDO.
The company’s growth momentum in healthcare and nursing degree enrollments isn’t something to overlook. In these times of shifting education trends, particularly among today’s generation, Perdoceo Education Corporation (NASDAQ:PRDO) is witnessing increasing enthusiasm among career professionals and resilient healthcare programs, which ultimately makes it a favorite.
We have seen how college degrees are now losing their appeal as they are weighed down by debt. With students now preferring hands-on skills that pay the bills, the career-focused online learning programs offered by Perdoceo Education Corporation (NASDAQ:PRDO) tend to be more valuable.
Perdoceo Education Corporation (NASDAQ:PRDO), incorporated in 1994, is an Illinois-based provider of postsecondary education operating through three segments: Colorado Technical University (CTU), The American InterContinental University System (AIUS), and University of St. Augustine for Health Sciences (USAHS).
6. Coursera, Inc. (NYSE:COUR)
Number of Hedge Fund Holdings: 30
According to the Form 13F filing with the SEC, AlphaQuest LLC has expanded its holdings in Coursera, Inc. (NYSE:COUR) by 164.5% during the first quarter. With the purchase of 26,147 shares, the firm now owns 42,039 shares of the company’s stock, valued at $280,000.
There’s one thing that everyone is rooting for, and that’s Coursera’s rapid expansion. Coursera, Inc. (NYSE:COUR) has a business model that is tailored yet generic. The company recently surpassed 10 million total enrollees in its generative AI courses and certifications, a segment that is anticipated to continue growing.
In this era of AI, every day brings a new set of skills to learn, ones you won’t find in college curricula. While offering an evolving pool of certifications, Coursera, Inc. (NYSE:COUR) is utilizing AI to dub course content into various languages to seize international growth opportunities. Thus, this often overlooked stock is the perfect example of the small-cap winner that only the smartest investors have on their radar.
Coursera, Inc. (NYSE:COUR) is a California-based global provider of online educational services. Founded in 2011, the company operates through three segments: Consumer, Enterprise, and Degrees.
5. Adtalem Global Education Inc. (NYSE:ATGE)
Number of Hedge Fund Holdings: 32
Landscape Capital Management L.L.C. acquired a new stake in the shares of Adtalem Global Education Inc. (NASDAQ:ATGE), as disclosed with the Securities and Exchange Commission (SEC). Following the purchase of 31,709 shares with a value of approximately $3,191,000, the investment management firm now owns 0.09% of the company.
What’s truly impressive about Adtalem Global Education Inc. (NASDAQ:ATGE) is its growth with purpose strategy that hasn’t only delivered healthy financial returns and meaningful student outcomes, but also facilitated the adoption of AI-powered learning tools and reengineered its institutional model.
So far, the company’s one- and three-year returns have surpassed the market’s returns by 68.84% and 199.20%, respectively. Having said that, we can expect these numbers to only grow, all thanks to its partnership with SSM Health. As described by Stephen W. Beard, CEO of Adtalem Global Education Inc. (NASDAQ:ATGE),
“This model is replicable and scalable with other health systems, and it exemplifies our vision to expand access to health care education, to connect education to employment outcomes, to build durable, purpose-driven career pathways.”
Adtalem Global Education Inc. (NASDAQ:ATGE), incorporated in 1987, is an Illinois-based provider of healthcare education. With three main segments: Chamberlain, Walden, and Medical and Veterinary, the company is committed to transforming lives and enabling careers.
4. Bright Horizons Family Solutions Inc. (NYSE:BFAM)
Number of Hedge Fund Holdings: 34
During the first quarter, DRW Securities LLC acquired a new position in Bright Horizons Family Solutions Inc. (NYSE:BFAM) through the purchase of 3,400 shares, valued at approximately $432,000.
The company is undergoing a period of recovery, now surpassing pre-pandemic revenue with robust cash flow and an impressive growth outlook. Bright Horizons Family Solutions Inc. (NYSE:BFAM) has adopted a recovery strategy that is nothing but impressive as it expands revenue-generating services, such as backup care and educational advisory, and leverages B2B contracts.
We have witnessed how the childcare sector has structurally evolved over the years. As more and more females become a part of the labor force and the concept of ‘dual-income’ gains traction, the demand for quality early education rises, thus driving the growth of Bright Horizons Family Solutions Inc. (NYSE:BFAM).
Bright Horizons Family Solutions Inc. (NYSE:BFAM), incorporated in 1986, is a provider of early education and childcare operating in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. This Massachusetts-based company is committed to enriching the lives of everyone.
3. Grand Canyon Education, Inc. (NASDAQ:LOPE)
Number of Hedge Fund Holdings: 36
During the first quarter, Evergreen Capital Management LLC acquired a new stake in Grand Canyon Education, Inc. (NASDAQ:LOPE) through the purchase of 1,830 shares of the company’s stock, valued at approximately $317,000.
While raising its guidance for FY 2025, Grand Canyon Education, Inc. (NASDAQ:LOPE) continues to outperform Wall Street’s estimates. As the number of students preferring to do college online increases, the management anticipates new start growth to be in the mid- to high single digits for the second half.
What’s truly impressive about Grand Canyon Education, Inc. (NASDAQ:LOPE) is its asset-light model. The company is consistently engaged in aggressive buybacks to boost EPS and thus, shareholder returns. In just three years, LOPE delivered a return of 151.95% while the S&P 500 (^GSPC) returned 65.16%.
Grand Canyon Education, Inc. (NASDAQ:LOPE), based in Phoenix, Arizona, is an education services company that was incorporated in 1949. The company’s core offerings include technology services, academic services, counseling services and support, and back-office services.
2. Stride, Inc. (NYSE:LRN)
Number of Hedge Fund Holdings: 41
According to the latest 13F filing with the Securities and Exchange Commission, Magnetar Financial LLC has acquired a new stake in Stride, Inc. (NYSE:LRN). Following the purchase of 2,101 shares of the company’s stock, the firm’s investment in the company is valued at $266,000.
Everyone is quite eager for the company’s five-year plan that was set out in FY23. Momentum suggests that Stride, Inc. (NYSE:LRN) could achieve its FY2028 targets in FY2026, a full two years sooner. From earnings surge to robust operating leverage, the company is enjoying significant benefits from scale.
While strong initial enrollment for the crucial fall season leads the way for a solid 2026 outlook, Stride, Inc. (NYSE:LRN) proves to be an overlooked yet resilient stock in this waning economy. Perhaps most striking is what the management expresses, “we continue to see record demand for the products and services we pioneered a quarter century ago.”
Stride, Inc. (NYSE:LRN), headquartered in Reston, Virginia, offers proprietary and third-party online curriculum, software systems, and educational services. Founded in 1999, the company serves a wide clientele, including public and private schools, school districts, consumers, and government agencies.
1. Duolingo, Inc. (NASDAQ:DUOL)
Number of Hedge Fund Holdings: 55
Vikram Kesavabhotla, an analyst at Baird, has initiated coverage on Duolingo, Inc. (NASDAQ:DUOL) with a ‘Neutral’ rating and a price target of $280, implying a surge of about 3.3% from the current level.
While the analyst affirmed the company’s effective product development and positioning in the language learning market, Duolingo, Inc. (NASDAQ:DUOL) still has some competitive risks that make the investors considerably cautious. Additionally, the firm highlighted the company’s dedication to innovation and fulfilling customer needs.
If we consider the one- and three-year returns, Duolingo, Inc. (NASDAQ:DUOL) has outperformed the market by 11.20% and 126.93%, respectively. Much of this outperformance is attributed to AI, which has not only delivered real operating leverage but also enabled rapid course expansion and declining costs. All in all, one thing the company certainly has is growth potential that can make it the next exceptional consumer platform.
Duolingo, Inc. (NASDAQ:DUOL) is a Pennsylvania-based mobile learning platform operating in the United States, the United Kingdom, and internationally. Incorporated in 2011, the company offers courses in 40 different languages.
While we acknowledge the potential of DUOL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUOL and that has 100x upside potential, check out our report about this cheapest AI stock.
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