What changed
$EDU — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $656M | EPS $0.95 vs $0.84 🟢
💡 Consensus views EDU as a post-crackdown recovery story with moderate growth, but the magnitude of the EPS beat (0.95 vs 0.84) and strong operating leverage suggest earnings power is underestimated; the market is pricing in a low-teens P/E, while similar pivots have re-rated to 15-18x when execution clarity emerges.
📉 Reward/risk: 2.25:1
🏢 Business Quality: 7/10 - Strong brand, diversified offerings (language training, test prep, online education, East Buy), and healthy balance sheet, though regulatory overhang and East Buy's slowing growth temper quality.
📊 Valuation: cheap — EV/Sales ~1.4x (sector median 2.5x), trailing P/E ~12x (peers 18-25x), and sum-of-parts suggests East Buy stake alone is undervalued;...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/EDU0615