According to research done by Worldwide Industry Insights (GMI), the global Online Education market would increase at a rate of 20% per year over the next seven years, surpassing the $1 trillion mark by 2028. The Asia Pacific area and India are expected to develop even quicker.
This shows that the rise in Online Education demand driven by Covid-19 is simply the beginning of a multi-year transformation in the way we learn.
As high-speed Internet connection spreads around the world, more individuals will be able to use e-learning platforms to further their education. As the decade proceeds, more courses will be taken, more degrees will be gained, and more staff training will be accomplished through remote learning experiences.
Because of the projected expansion, industry incumbents and new rivals are vying for a piece of the pie. Product options, teacher hires, and technology advances are all rapidly growing.
Studying these three firms can help you decide which stocks to buy.
Firms with Online Education investors should look into
Why you should study 2U Inc?
2U, Inc. (NASDAQ: TWOU) provides cloud-based software that enables non-profit colleges and universities to educate students remotely. In addition to this technology, it offers a range of undergraduate and graduate degree programs of its own.
However, the company’s mainstay is assisting educational institutions in converting their course contents and expertise into Online Education learning solutions that meet the demands of the modern college student. 2U is most renowned for its free-to-degree programs, which allow students to acquire degrees and certifications without ever having to set foot on a college campus.
Last week, 2U reported a 9% rise in first-quarter sales but a nearly doubled net loss of $18.5 million. A 35% rise in expenditures was mostly due to one-time, non-cash charges, but it also included increased operational expenses to support expansion ambitions.
The integration of the recently purchased edX is key to 2U’s expansion goals. Over time, the firm intends to grow its 4,000-plus offers in order to establish itself as the ideal digital transformation partner for institutions throughout the world.
What Does Adtalem Global Education Do?
Adtalem Global Education Inc. (NYSE: ATGE) is the company behind a half dozen Online Education, on-campus, and hybrid universities focused on healthcare. Nursing programs are available at Chamberlain University, and three independent schools provide degree and non-degree programs in medical, including veterinary medicine. Then there’s Walden University, which has just purchased over 100 online certificate and degree programs in healthcare.
At a time when front-line medical workers have morphed into daily heroes, the company’s increasing portfolio is assisting healthcare employers in meeting their key workforce demands. Although student enrollments have recently slowed owing to Covid-related issues, Adtalem anticipates that demand for healthcare professionals will continue to outstrip supply, as it has in the past. Rising demand is likely to attract more people to the profession, resulting in consistent demand for the company’s diversified healthcare solutions.
Analysts predict that Adtalem’s profits per share will surpass $3.00 for the first time in 2023. This suggests that the company may be purchased for roughly 10 times next year’s profits projection, which is a tiny amount to pay for access to healthcare education expenditure in the post-pandemic era.
Is Strategic Education Stock good to Buy?
Strategic Education, Inc. (NASDAQ: STRA), or SEI, is the parent company of Strayer University, home of the famous Jack Welch Management Institute MBA program. Former General Electric CEO Jack Welch and his wife Suzy, a well-known novelist, created the for-profit Online Education institution more than a decade ago. It is also the organization behind the New York Code and Design Academy, a popular location for students interested in a career in software development.
While the majority of SEI’s income comes from the United States, roughly one-fourth comes from the Australia/New Zealand market, where Online Education learning is also expanding quickly in the aftermath of recurrent Covid lockdowns. Short-sighted investors have exited the e-learning market due to reduced enrollment data compared to 2021’s phenomenal growth. SEI shareholders have seen the same thing, with enrollments down 13% last quarter and the price down significantly from its Covid high.
The good news is that long-term investors can seize a prominent online education operator with excellent assets and financials. SEI’s cash position has already increased by 8% this year, providing adequate liquidity to pay expenses and invest for the future. The firm with an aggressive repurchase program and a 3.7 percent future dividend is one of the most shareholder-friendly education names.