7 Most Promising Education Stocks According to Hedge Funds

1. Stride, Inc. (NYSE:LRN)

Number of Hedge Fund Holders: 43

As of February 25, Stride, Inc. (NYSE:LRN) has mixed market sentiment, with 67% of analysts recommending buying the stock and the remaining 33% advising holding it. With a 1-year median price target of $100, the stock has an upside potential of 19.08%.

On January 29, BMO Capital lifted the price target on Stride, Inc. (NYSE:LRN) to $94, up from $75, and reiterated a Market Perform rating. In a research note, the analyst says the company’s Q2 2026 results surpassed street forecasts, despite the result being supported by a one-time gain. The deteriorating dynamics of General Education were more than offset by Career Learning, the firm added.

BMO Capital highlighted that management views last quarter’s key platform implementation issues as no longer a problem. Stride, Inc. (NYSE:LRN) maintained its FY26 revenue guidance and increased its adjusted operating income (AOI) projection.

On the same day, Canaccord Genuity reaffirmed a Buy rating on Stride, Inc. (NYSE:LRN), with a price target of $125. This came after the company’s fiscal Q2 results, in which it met expectations for total enrollment and revenue, while outperforming on profitability. The company’s virtual education programs’ demand appears steady, with application volumes remaining solid and technical pressure exposure at zero, the firm asserted.

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.

While we acknowledge the potential of LRN 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 LRN and that has 100x upside potential, check out our report about this cheapest AI stock.

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