Aug 05, 2020 (StockMarket.com via COMTEX) -- Is Now A Good Time To Buy These 2 Top Online Education Stocks?
Education stocks have actually been in quite a good place recently. Most education stocks are related to online services for learning . Since we are all stuck at home due to the coronavirus, these services are certainly on the rise. Most schools are still not offering any in-person classes at the moment. We are still in the midst of the peak of the coronavirus in the United States with no signs of going back to normal soon.
We've seen tools used for education like Zoom ( ZM Stock Report ) rise to new heights in stock price. Online education had already been growing in numbers every year before the virus took over. Now that this has happened to the world, it has only accelerated the number of students using online education services. This means that investors have been looking at education stocks more in recent times.
Many people currently see online education as a more viable way to learn in 2020. So services that help people complete their work easier or provide textbooks etc. are rising. That is why there are many education stocks to watch as August of 2020 comes around. Let's have a look at two education stocks that have been trending in the market and could have a positive future.
Top Online Education Stocks To Buy [Or Sell] In August 2020: Chegg
The first education stock to watch is Chegg Inc. ( CHGG Stock Report ) because of its new highs in the market. Chegg offers textbook rentals, tutoring, and much more through its online services. As of 2019, Chegg had 3.9 million subscribers. It is expected that this number rose much more once 2020 came around. In 2018 alone the company brought in $321 million in revenue. Year to date, CHGG stock is up nearly 90% in the share price.
The ongoing pandemic has caused students to turn to an online way of getting an education. This has caused Chegg to receive many new customers. CHGG stock price was around $40 a share before the pandemic started. Once students turned to the company for educational help, CHGG stock price reached $83.48 a share as of August 4th. From July 29th to August 4th, CHGG stock went up 14.18% in the share price. It started on the 29 [th] at $73.11 a share and ended up at the 4 [th] price of $83.48 a share.
Do you think that CHGG stock price can keep up this momentum? As online education continues to be more relevant over time it is a possibility. Online education won't just go away once the pandemic slows down, as it has always been a growing medium. That is what specifically makes CHGG stock a potential education stock to buy.
Top Online Education Stocks To Buy [Or Sell] In August 2020: K12 Inc.
The second education stock to watch, K12 Inc. ( LRN Stock Report ), has been able to make a dramatic increase in its share price. The company sells online courses for students studying online. It acts as an alternative to in-person classes. The name K12 represents how it offers courses for students from kindergarten all the way to 12th grade. In the fiscal year 2019, K12 Inc. brought in $1.016 billion in revenue. The pandemic caused this education stock to rise much higher than it previously was.
For starters, LRN stock was at around $20 a share before the pandemic began. August 4 [th] at 2 pm +0000, LRN stock is at $47.60 a share on average. This means that the LRN stock price is up 138% from where it was before the pandemic. It seems like there is no stop in sight for LRN stock price. Many students have switched over to K12's educational program because they are unable to attend physical schooling.
These education stocks show how online education is shaping the future. It is possible we live in a day in the future in which in-person education is not even a thing. It would not be ideal necessarily because some people need to learn in a classroom environment. With that being said many in-person schools are using online education as a part of the curriculum. So no matter what the state of the world is, online education is on the rise. That is why CHGG stock and LRN stock are two education stocks to watch.
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