EDU Should I Buy
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New Oriental Education & Technology Group Inc (EDU) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. Despite a slight recent price decline, the company's strong financial performance, positive analyst ratings, and increasing hedge fund interest make it a compelling long-term investment opportunity.
The stock's MACD is negative and contracting, RSI is neutral at 27.071, and moving averages are converging, indicating no clear upward momentum. However, the stock is trading near its support level (S1: 51.654), suggesting limited downside risk.
Hedge funds are significantly increasing their positions in the stock, with a 1163.91% increase in buying over the last quarter.
Analysts have raised price targets and upgraded the stock to 'Buy' after strong financial performance in the latest quarter.
Financials show robust YoY growth in revenue (+14.71%), net income (+42.34%), and EPS (+50.00%).
The stock has shown a slight decline in recent trading (-1.08% in the regular market and -0.91% pre-market).
Technical indicators do not currently show strong upward momentum.
In Q2 2026, the company reported a 14.71% YoY revenue increase to $1.19 billion, a 42.34% YoY net income increase to $45.45 million, and a 50% YoY EPS increase to $0.03. Gross margin also improved to 53.26%, up 2.38% YoY, highlighting strong operational efficiency.
Analysts are bullish on EDU. BofA raised its price target to $71.30 from $67.10 and reiterated a 'Buy' rating, citing strong revenue and margin performance. HSBC also upgraded the stock to 'Buy' with a $68 price target, reflecting confidence in the company's future growth.
