Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential

8. Perdoceo Education Corporation (NASDAQ:PRDO)

Renaissance Technologies’ Stake Value: $113,229,501

Upside Potential as of May 1: 38.78%

Market Capitalization as of May 1: $1.64 Billion

Number of Hedge Fund Holders: 27

Perdoceo Education Corporation (NASDAQ:PRDO) is an American for-profit postsecondary education provider. The company offers career-oriented degree programs through three main institutions: the University of St. Augustine for Health Sciences (USAHS), Colorado Technical University (CTU), and the American InterContinental University System (AIUS). It targets students seeking higher education, and its end market is primarily the US education sector.

Perdoceo Education Corporation’s (NASDAQ:PRDO) quarterly revenue in Q4 2024 increased by 19.3% to $176.4 million compared to the prior year quarter. Operating income surged 133.2% to $37.2 million, while adjusted operating income rose 122.9% to $43.2 million. The company’s growth is underpinned by impressive enrollment gains; total student enrollments increased by 20.0% to 41,400 students during the fiscal year 2024. This includes the addition of 3,800 students from the newly acquired University of St. Augustine for Health Sciences (USAHS).

Looking ahead, Perdoceo Education Corporation’s (NASDAQ:PRDO) management is optimistic about 2025. They project adjusted earnings per diluted share to range between $2.31 and $2.51, a potential growth from the $2.29 recorded in 2024. According to CEO Todd Nelson, the company has robust momentum in prospective student interest, student retention, and student engagement.

“This broad momentum sets us up well for 2025 while our faculty and student support teams continue to prioritize enhancing student experiences, retention and academic outcomes for current and prospective learners,” he commented.

On April 26, 2025, analysts at Barrington Research reaffirmed their Outperform rating on Perdoceo (NASDAQ:PRDO) stock with a $35.00 price target. This suggests a potential upside of nearly 40% from current levels as of May 1.