SCHL Should I Buy
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Scholastic Corp (SCHL) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock is trading slightly above the recent buyback price of $40.00, and while there are some positive catalysts such as the stock buyback plan and bullish moving averages, the financial performance and analyst sentiment suggest limited upside potential in the near term. Holding or waiting for a better entry point is advisable.
The stock's technical indicators show mixed signals. The MACD is negative and contracting, while the RSI is neutral at 75.407. The moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level (R1: 42.446). This suggests limited immediate upside potential.
Scholastic recently completed a stock buyback at $40.00 per share, which could provide support to the stock price. The gross margin increased YoY to 50.41%, indicating improved operational efficiency.
The company's Q3 financials show significant declines in revenue (-1.88% YoY), net income (-1836.11% YoY), and EPS (-2061.54% YoY). Analysts have downgraded the stock to Neutral, citing valuation concerns, and there is no recent significant trading activity by hedge funds or insiders.
In 2026/Q3, Scholastic's financial performance was weak, with revenue dropping to $329.1M (-1.88% YoY), net income plummeting to $62.5M (-1836.11% YoY), and EPS falling to 2.55 (-2061.54% YoY). However, gross margin improved to 50.41% (+3.15% YoY).
Analysts have a Neutral rating on the stock, with a price target of $40. The stock is trading slightly above this target, and analysts suggest limited upside potential given the current valuation.
