Validea Joel Greenblatt Strategy Daily Upgrade Report - 6/26/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2025
0mins
Should l Buy STRA?
Source: NASDAQ.COM
Validea's Earnings Yield Investor Model: The model, based on Joel Greenblatt's strategy, upgraded Strategic Education Inc. (STRA) from a 70% to an 80% rating due to improved fundamentals and valuation, indicating growing interest in the stock.
Company Overview: Strategic Education, Inc. is an education services provider with subsidiaries including Capella University and Strayer University, offering various post-secondary education programs and job-ready skills development across the U.S. and Australia.
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Analyst Views on STRA
Wall Street analysts forecast STRA stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 78.580
Low
85.00
Averages
95.00
High
105.00
Current: 78.580
Low
85.00
Averages
95.00
High
105.00
About STRA
Strategic Education, Inc. is an education services company. It provides access to education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills. It operates through its subsidiaries, Capella University and Strayer University, both accredited post-secondary institutions of higher education located in the United States, and Torrens University, an accredited post-secondary institution of higher education located in Australia. Its segments include U.S. Higher Education (USHE), Australia/New Zealand, and Education Technology Services. The USHE segment provides certificate and degree programs to working adults, primarily through Capella University and Strayer University. The Education Technology Services segment develops and maintains relationships with employers to build employee education benefits programs. The Australia/New Zealand segment includes Torrens University, Think Education, and Media Design School.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TRUIST SECURITIES LOWERS TARGET PRICE FOR STRATEGIC EDUCATION INC TO $80 FROM $85
- Strategic Education Inc. Update: The company has announced a reduction in its target price from $85 to $80.
- Market Impact: This adjustment reflects changes in the company's financial outlook and market conditions.
See More
Strategic Education, Inc. Q1 2026 Earnings Call Insights
- Revenue Trend Analysis: Strategic Education, Inc. reported a 1% year-over-year revenue decline in Q1 2026, primarily due to a slight decrease in overall enrollment, indicating pressure in market competition and projecting this quarter as the low point for revenue and growth for the year.
- Education Technology Services Growth: The Education Technology Services division saw a 21% revenue increase to $42 million, with operating income rising 42% to $20 million, highlighting its critical role as it now represents 46% of the company's consolidated operating income, positioning it as a key driver for future growth.
- Corporate Partnership Expansion: Workforce Edge ended the quarter with 82 corporate agreements covering 4 million employees, with enrollments increasing by 70% to nearly 4,000 students, demonstrating the successful implementation of the employer-focused strategy and enhancing the company's competitive edge in the market.
- Share Repurchase Program: The company repurchased approximately 493,000 shares during the quarter for a total of $40 million, with about $200 million remaining on its repurchase authorization, reflecting confidence in future cash flows while providing returns to shareholders.
See More
Strategic Education Declares $0.60 Quarterly Dividend
- Quarterly Dividend Announcement: Strategic Education (STRA) declares a quarterly dividend of $0.60 per share, consistent with previous distributions, indicating stable cash flow and ongoing shareholder returns, which is likely to bolster investor confidence.
- Dividend Yield: The forward yield of 2.87% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable income.
- Payment Schedule: The dividend will be payable on June 1, with a record date of May 22 and an ex-dividend date also on May 22, providing shareholders with a clear timeline that aids in financial planning.
- Future Savings Plan: Strategic Education anticipates an additional $70 million in AI-driven expense savings by 2027 while expanding employer-focused enrollment, a strategy that will enhance operational efficiency and market competitiveness.
See More
Strategic Education Reports Q1 2026 Earnings with AI Savings
- Earnings Highlights: Strategic Education reported Q1 2026 non-GAAP EPS of $1.41 and revenue of $305.9 million, reflecting a 0.8% year-over-year growth, demonstrating the company's resilience in maintaining stable income despite market challenges.
- Customer Acquisition Issues: The company faced customer acquisition challenges with Phoenix Education, leading to a strategic decision to move to the sidelines, which may impact short-term market performance but provides flexibility for future adjustments.
- AI-Driven Cost Savings: Strategic Education plans to achieve an additional $70 million in expense savings through AI technology by 2027, which will enhance operational efficiency and strengthen its competitive position in the education market.
- Enrollment Expansion Strategy: The company is expanding its employer-focused enrollment strategy to attract more corporate partners, aiming to boost overall revenue and market share, reflecting a positive outlook for future growth.
See More
Strategic Education Reports Increased Q1 Profit
- Profit Growth: Strategic Education reported a first-quarter profit of $32.80 million, or $1.48 per share, up from $29.74 million and $1.24 per share last year, indicating a significant improvement in profitability and reflecting robust growth in the education market.
- Adjusted Earnings: Excluding items, adjusted earnings were $31.58 million, or $1.42 per share, demonstrating positive progress in cost control and operational efficiency, which enhances investor confidence in the company's financial health.
- Revenue Increase: The company’s revenue rose 0.8% to $305.92 million from $303.59 million last year, showing stability in revenue streams despite a modest growth rate in a competitive education sector.
- Market Outlook: With ongoing demand for education, Strategic Education aims to enhance its market share by optimizing its courses and services, and is expected to benefit from the long-term growth trends in the education industry.
See More
STRATEGIC EDUCATION REPORTS Q1 EPS OF USD 1.48
Strategic Education Overview: The article discusses the performance of Strategic Education in Q1, highlighting its earnings per share (EPS) of $1.48.
Financial Insights: The report provides insights into the company's financial health and strategic direction, indicating a focus on growth and educational offerings.
See More
TRUIST SECURITIES LOWERS TARGET PRICE FOR STRATEGIC EDUCATION INC TO $80 FROM $85
- Strategic Education Inc. Update: The company has announced a reduction in its target price from $85 to $80.
- Market Impact: This adjustment reflects changes in the company's financial outlook and market conditions.
See More
Strategic Education, Inc. Q1 2026 Earnings Call Insights
- Revenue Trend Analysis: Strategic Education, Inc. reported a 1% year-over-year revenue decline in Q1 2026, primarily due to a slight decrease in overall enrollment, indicating pressure in market competition and projecting this quarter as the low point for revenue and growth for the year.
- Education Technology Services Growth: The Education Technology Services division saw a 21% revenue increase to $42 million, with operating income rising 42% to $20 million, highlighting its critical role as it now represents 46% of the company's consolidated operating income, positioning it as a key driver for future growth.
- Corporate Partnership Expansion: Workforce Edge ended the quarter with 82 corporate agreements covering 4 million employees, with enrollments increasing by 70% to nearly 4,000 students, demonstrating the successful implementation of the employer-focused strategy and enhancing the company's competitive edge in the market.
- Share Repurchase Program: The company repurchased approximately 493,000 shares during the quarter for a total of $40 million, with about $200 million remaining on its repurchase authorization, reflecting confidence in future cash flows while providing returns to shareholders.
See More
Strategic Education Declares $0.60 Quarterly Dividend
- Quarterly Dividend Announcement: Strategic Education (STRA) declares a quarterly dividend of $0.60 per share, consistent with previous distributions, indicating stable cash flow and ongoing shareholder returns, which is likely to bolster investor confidence.
- Dividend Yield: The forward yield of 2.87% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable income.
- Payment Schedule: The dividend will be payable on June 1, with a record date of May 22 and an ex-dividend date also on May 22, providing shareholders with a clear timeline that aids in financial planning.
- Future Savings Plan: Strategic Education anticipates an additional $70 million in AI-driven expense savings by 2027 while expanding employer-focused enrollment, a strategy that will enhance operational efficiency and market competitiveness.
See More
Strategic Education Reports Q1 2026 Earnings with AI Savings
- Earnings Highlights: Strategic Education reported Q1 2026 non-GAAP EPS of $1.41 and revenue of $305.9 million, reflecting a 0.8% year-over-year growth, demonstrating the company's resilience in maintaining stable income despite market challenges.
- Customer Acquisition Issues: The company faced customer acquisition challenges with Phoenix Education, leading to a strategic decision to move to the sidelines, which may impact short-term market performance but provides flexibility for future adjustments.
- AI-Driven Cost Savings: Strategic Education plans to achieve an additional $70 million in expense savings through AI technology by 2027, which will enhance operational efficiency and strengthen its competitive position in the education market.
- Enrollment Expansion Strategy: The company is expanding its employer-focused enrollment strategy to attract more corporate partners, aiming to boost overall revenue and market share, reflecting a positive outlook for future growth.
See More
Strategic Education Reports Increased Q1 Profit
- Profit Growth: Strategic Education reported a first-quarter profit of $32.80 million, or $1.48 per share, up from $29.74 million and $1.24 per share last year, indicating a significant improvement in profitability and reflecting robust growth in the education market.
- Adjusted Earnings: Excluding items, adjusted earnings were $31.58 million, or $1.42 per share, demonstrating positive progress in cost control and operational efficiency, which enhances investor confidence in the company's financial health.
- Revenue Increase: The company’s revenue rose 0.8% to $305.92 million from $303.59 million last year, showing stability in revenue streams despite a modest growth rate in a competitive education sector.
- Market Outlook: With ongoing demand for education, Strategic Education aims to enhance its market share by optimizing its courses and services, and is expected to benefit from the long-term growth trends in the education industry.
See More
STRATEGIC EDUCATION REPORTS Q1 EPS OF USD 1.48
Strategic Education Overview: The article discusses the performance of Strategic Education in Q1, highlighting its earnings per share (EPS) of $1.48.
Financial Insights: The report provides insights into the company's financial health and strategic direction, indicating a focus on growth and educational offerings.
See More
