Below we presented the list of top 5 education stocks to buy now. For a detailed discussion as well as a more comprehensive list, please see 10 Best Education Stocks To Buy Now.
5. New Oriental Education and Technology Group, Inc. (NYSE:EDU)
No of HFs: 40
Total Value of HF Holdings: $1.7 Billion
New Oriental is ranked as the top 5 in our list of education stocks. The company was established in 1993 with headquarters located in the Haidian district of Beijing. EDU is a provider of private educational services in China. For the fiscal year 2020, EDU generated a revenue of approximately $3.6 billion.
The top hedge fund holder of this stock is Jim Simons’ Renaissance Technologies, which had over $340 million invested in the stock at the end of September.
4. TAL Education Group (NYSE:TAL)
No of HFs: 41
Total Value of HF Holdings: $2.1 Billion
TAL Education Group is a Chinese holding company founded in 2003, their headquarters are located in Beijing, China. The company offers after-school education for students. During the third quarter of the year, the company reported a net revenue of $1.10 billion, representing a 20.8 percent increase from $913.2 million last year.
The top hedge fund holder of this stock Chase Coleman and Feroz Dewan’s Tiger Global Management LCC, which had over $438 million invested in the stock at the end of September.
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3. Chegg, Inc. (NYSE:CHGG)
No of HFs: 42
Total Value of HF Holdings: $838 Million
Chegg, Inc is first launched in 2005. They are based in Santa Clara, California. The company provides digital textbook rentals, online tutoring, and other student services. During the third quarter of 2020, the company reported total net revenue of $154.0 million, an increase of 64% year-over-year.
In an article, Brown advisory highlighted a few stocks and CHGG was one of them. Here they mentioned,
“Chegg reported earnings that supported our investment thesis that the company should benefit from the shift to online learning—it experienced a reacceleration in subscriber growth, driving strong forward guidance.”
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2. Zoom Video Communications, Inc. (NASDAQ:ZM)
No of HFs: 56
Total Value of HF Holdings: $9.7 Billion
Zoom Video Communications, Inc. is an American communications technology company that provides video telephony and online chat services through a cloud-based software. During the fourth quarter of 2020, the company reported a revenue of $188.3 million.
In an article, we mentioned Bill Nygren’s investor letter highlighting Zoom as of the biggest newcomers to the large-cap this year.
“The biggest newcomer to the large-cap list this year was Zoom Video Communications. The company has a market cap of $134 billion and sells at nearly 100 times trailing sales. With so many people working from home, video conferencing has been a lifesaver. Most days I have multiple video calls. When people talk about changes from the past six months that are likely to outlast Covid-19, increased use of video conferencing is at the top of most lists. I use Zoom frequently and love the service. But I also use Cisco WebEx, Microsoft Teams, Google Meet, Apple FaceTime and Verizon Blue Jeans Meetings. When I’m on a call, it’s hard to remember which one I’m using because the services are so similar. Zoom’s competitors are not underfunded startups, but rather are some of the biggest businesses in the world. While it is easy to project that video conferencing will grow over the next decade, there is a wide range in the growth estimates, and it is hard to predict what market shares will be, what the services will cost or what profit margins will look like. Zoom faces the uncertainties you’d expect for a young company with $1 billion of sales. But its future is much more uncertain than you’d typically see from a $134 billion market-cap stock. Will Zoom stock perform well from here? I have no idea. But I do know the range of possible outcomes for the business is much wider than it is for most companies that enjoy a market cap above $100 billion.”
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1. Ringcentral, Inc. (NYSE:RNG)
No of HFs: 59
Total Value of HF Holdings: $3.3 Billion
Ringcentral, Inc tops the list of best education stocks to buy now. The company is an American provider of cloud-based communication and collaboration solutions for businesses. During the third quarter of the year, the company reported a total revenue increase of 30% year over year to $304 million.
The top hedge fund holder for this stock is Panayotis Takis Sparaggis’ Alkon Capital Management which had $1 billion invested in the stock at the end of September.
In an article, RiverPark Advisors’ highlighted stocks one of which was RNG where they mentioned,
“Lockheed Martin is the world’s largest aerospace and defense contractor. With about 70% of its $60 billion in revenue from the U.S. government, the company is well positioned to benefit from U.S. defense budget growth, historically 5-6% per year, as well as increased global military spending. With a $144 billion backlog and deliveries forecast to reach 180 aircraft per year in 4- 5 years, we believe the company could grow at a significantly higher rate than overall defense budget growth over the next several years. The Street expects mid-single-digit revenue growth for the company, in-line with overall market growth. Due to its exposure to faster-growing programs, we believe the company can exceed that growth rate, and add margin expansion from increased scale. Further, strategic acquisitions, debt pay down, a 2% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.
We are also excited about LMT’s new – CEO James Taiclet – a military veteran and, over the previous 10 years the highly respected CEO of American Tower, a long-time Fund holding. Under Jim’s leadership, AMT grew its market capitalization from $2 billion to $100 billion and as both a shareholder and US citizen we look forward to him bringing his vast array of leadership skills to LMT.”
Please also see 12 Best Fitness Stocks to Buy Now and Top 10 Agriculture Stocks to Buy Now
Disclosure: None.
