For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether STRIDE INC (NYSE:LRN) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but STRIDE INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.
How We Gauge Growth for NYSE:LRN
ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:LRN has earned a 8 for growth:
- The Earnings Per Share has grown by an impressive 52.35% over the past year.
- LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.31% yearly.
- LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.55%.
- Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
- The Earnings Per Share is expected to grow by 20.38% on average over the next years. This is a very strong growth
- LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.57% yearly.
Health Analysis for NYSE:LRN
ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LRN scores a 8 out of 10:
- LRN has an Altman-Z score of 6.30. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
- LRN's Altman-Z score of 6.30 is amongst the best of the industry. LRN outperforms 86.15% of its industry peers.
- The Debt to FCF ratio of LRN is 2.38, which is a good value as it means it would take LRN, 2.38 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.38, LRN is doing good in the industry, outperforming 73.85% of the companies in the same industry.
- LRN has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- Even though the debt/equity ratio score it not favorable for LRN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
- A Current Ratio of 5.60 indicates that LRN has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 5.60, LRN belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
- A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
- LRN has a better Quick ratio (5.50) than 93.85% of its industry peers.
Profitability Analysis for NYSE:LRN
ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:LRN, the assigned 8 is noteworthy for profitability:
- With an excellent Return On Assets value of 12.18%, LRN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
- The Return On Equity of LRN (19.78%) is better than 80.00% of its industry peers.
- The Return On Invested Capital of LRN (12.62%) is better than 87.69% of its industry peers.
- The last Return On Invested Capital (12.62%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
- LRN has a better Profit Margin (11.38%) than 81.54% of its industry peers.
- In the last couple of years the Profit Margin of LRN has grown nicely.
- LRN has a better Operating Margin (13.91%) than 75.38% of its industry peers.
- LRN's Operating Margin has improved in the last couple of years.
- In the last couple of years the Gross Margin of LRN has grown nicely.
How does the Setup look for NYSE:LRN
ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:LRN is 7:
LRN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 106.22, a Stop Loss order could be placed below this zone.
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Check the latest full fundamental report of LRN for a complete fundamental analysis.
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Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.