Investors looking for stocks in the Schools sector might want to consider either Afya (AFYA) or Grand Canyon Education (LOPE). But which of these two stocks is more attractive to value investors?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
STRT, PAHC and AFYA made it to the Zacks Rank #1 (Strong Buy) growth stocks list on July 8, 2025.
Here is how Afya (AFYA) and American Public Education (APEI) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
DPMLF, EGO, AFYA, ALSN and HMN have been added to the Zacks Rank #1 (Strong Buy) List on June 23, 2025.
Afya Limited delivered solid Q1 results with 16% YoY revenue growth, driven by acquisitions and organic expansion, and reported strong seasonal margins. Valuation at 11–13x earnings appears fair but not compelling, given long-term risks of market saturation and increased competition in Brazil's medical education sector. Long-term concerns persist as Brazil rapidly increases its doctor supply, potentially pressuring AFYA's enrollment and pricing power in the future.
Afya Limited (NASDAQ:AFYA ) Q1 2025 Earnings Conference Call May 8, 2025 5:00 PM ET Company Participants Virgilio Gibbon - Chief Executive Officer Luis Andre Blanco - Chief Financial Officer Conference Call Participants Flavio Yoshida - Bank of America Lucca Marquezini - Itau Mauricio Cepeda - Morgan Stanley Marcelo Santos - JPMorgan Unidentified Company Representative Thank you for joining us for Afya's conference call. I'm here today with Afya's CEO, Virgilio Gibbon; and our CFO, Luis Andre Blanco.
Afya (AFYA) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.36 per share a year ago.
AFYA has announced a share purchase agreement to acquire 100% of FUNIC.
Afya's 3Q24 results showed 12% organic revenue growth and 16% overall growth, driven by the Unidom acquisition and strong performance in medical education and software segments. The company leveraged its cost structure, achieving a 300bps increase in adj EBITDA margin and a 68% YoY net income growth despite higher financial costs. Afya's valuation remains attractive, with a P/E of 11x and a potential yield of 20% in a few years, justifying a Buy rating.
Afya (AFYA) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.28 per share a year ago.