If you had to point to any one attribute that makes very large capitalization firms attractive as an investment vehicle, it would be predictability. Big, established businesses are predictable in terms of earnings and revenue growth.
Here is how K12 (LRN) and Netflix (NFLX) have performed compared to their sector so far this year.
Here is how K12 (LRN) and Netflix (NFLX) have performed compared to their sector so far this year.
K12 (LRN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Stride, a leading educational service provider, has experienced significant growth, doubling its revenue between FY18 and FY23. The online education industry in the US is projected to grow at a CAGR of 10.52% between FY24 and FY29, providing further growth opportunities for Stride. The company is expected to cross the $2B revenue threshold in FY24, driven by increased enrollment and strong margins.
K12 (LRN) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LRN broke through the 20-day moving average, which suggests a short-term bullish trend.
K12 (LRN) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.