EDU Should I Buy
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New Oriental Education & Technology Group Inc (EDU) is currently not a strong buy for a beginner investor with a long-term strategy. While the company has shown strong financial growth and positive analyst sentiment, the technical indicators suggest a bearish trend, and there are no immediate catalysts or proprietary trading signals to justify an entry point at this time. Holding off for a better entry point or further confirmation of a reversal is advisable.
The technical indicators for EDU suggest a bearish trend. The MACD histogram is negative and expanding, RSI is at 21.26, indicating oversold conditions, and the stock is trading below key support levels (S1: 52.468, S2: 50.415). Moving averages are converging, showing no clear directional trend.
Hedge funds have significantly increased their buying activity by 1163.91% over the last quarter.
Analysts have raised price targets and maintained a Buy rating, citing strong earnings growth and margin expansion.
The company reported a 19.8% YoY increase in revenue and a 45.34% YoY increase in net income for Q3 FY2026.
The stock has experienced a -5.97% regular market decline and a -2.01% pre-market decline, indicating weak short-term sentiment.
Gross margin dropped by -2.49% YoY, which could signal cost pressures.
Technical indicators suggest a bearish trend with no immediate signs of reversal.
In Q3 FY2026, the company reported strong financial performance with a 19.8% YoY increase in revenue to $1.417 billion, a 45.34% YoY increase in net income to $126.82 million, and a 60% YoY increase in EPS to $0.08. However, gross margin dropped by -2.49% YoY to 53.7%.
Analysts are bullish on EDU. BofA raised the price target to $73.20 from $71.30, citing strong earnings and margin expansion. HSBC upgraded the stock to Buy with a $68 price target. Analysts expect continued margin improvement and better earnings visibility in 2027.
