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  Title	Zacks Industry Outlook Highlights Adtalem Global Education, Stride and American Public Education
  ID	30469003
  External ID	152700396
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  Published Date	Feb. 4, 2026, 9:27 a.m.
  Summary	Zacks Industry Outlook Highlights Adtalem Global Education, Stride and American Public Education Zacks Equity Research Wed, February 4, 2026 at 10:27 AM EST 12 min read ATGE LRN APEI For Immediate Rel
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  URL	https://finance.yahoo.com/news/zacks-industry-outlook-highlights-adtalem-152700396.html
  Sentiment	Negative: 0.02501    Neutral: 0.40520    Positive: 0.56979
  Relevance	0.02247

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  Content ID	37761299
  Key	470fdeff-dd51-4826-9834-df4530ae3d57
  Content	Zacks Industry Outlook Highlights Adtalem Global Education, Stride and American Public Education Zacks Equity Research Wed, February 4, 2026 at 10:27 AM EST 12 min read ATGE LRN APEI For Immediate Release Chicago, IL – February 4, 2026 – Today, Zacks Equity Research discusses Adtalem Global Education Inc. ATGE, Stride, Inc. LRN and American Public Education, Inc. APEI. Industry: School Link: https://www.zacks.com/commentary/2827852/3-school-stocks-leveraging-ai-healthcare-demand-amid-headwinds The Zacks Schools industry enters 2026 facing notable headwinds, including a shrinking traditional student base, intensifying competition from public and nonprofit institutions and continued affordability pressures. Regulatory oversight around student outcomes, financial transparency and federal aid eligibility is tightening, increasing compliance costs and execution risk, particularly for career-focused providers. At the same time, rising marketing, labor and technology expenses are weighing on margins, while uncertainty around student-aid processes and loan policies continues to influence enrollment trends and pricing flexibility. Despite these challenges, the industry's medium-term outlook is improving, supported by steady demand for applied and career-oriented education in healthcare, skilled trades, cybersecurity and IT. Labor-market needs increasingly favor job-ready training models, positioning schools with strong employer alignment to benefit. Technology adoption is becoming a key differentiator, with data-driven instruction, adaptive learning and scalable online platforms enhancing engagement, outcomes and cost efficiency. Industry consolidation is also accelerating, enabling scale advantages and program expansion. Recent policy signals, including expanded Workforce Pell access and supportive veteran benefits, appear constructive, supporting affordability and enrollment visibility. Key beneficiaries include Adtalem Global Education Inc. , Stride, Inc. and American Public Education, Inc. . Industry Description The Zacks Schools industry comprises for-profit education companies that offer undergraduate, graduate and specialized programs in finance, accounting, analytics, marketing, healthcare, business and technology. They are engaged in offering career-oriented programs in the fields of business and management, nursing, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. The industry players also offer child-care services and career-oriented post-secondary courses. Some companies within the industry also provide yoga classes and yoga-related retail merchandise-integrated fitness classes, along with conducting workshops and teacher training programs. Story Continues 4 Trends Shaping the Future of the School Industry Financial & Competitive Pressures : Looking ahead to 2026, margin pressure is set to intensify for for-profit education providers as rising costs and tougher competition collide. Faculty, support services, marketing and technology expenses are outpacing revenue growth, while aggressive enrollment competition is driving up lead-generation costs. At the same time, stricter regulatory and outcomes requirements demand higher spending. With tuition pricing constrained by affordability and student-aid sensitivity, profitability will depend increasingly on efficiency, scale and disciplined capital allocation. Operational Challenges : For-profit educators face several operational and financial headwinds. Most of their revenues come from tuition and federal aid, so they are vulnerable to any enrollment swings or cuts in government funding. Any dip in student numbers (due to competition, demographic trends or economic cycles) can quickly hit operating income. Compliance and administrative costs are also high, as schools must meet strict reporting and quality standards under Title IV. FAFSA processing challenges continue, prompting late disbursement flexibilities and straining working capital for institutions reliant on Title IV funding cycles. Ongoing operational delays early in the year disrupted receivables timing, while new FVT/GE reporting requirements add compliance burdens and may drive adjustments to program portfolios. Industry players also often spend heavily on recruitment and advertising to attract students, squeezing margins. Again, macroeconomic factors (like rising interest rates or budget cuts at the state/local level) can constrain school and district purchasing of edtech products, indirectly pressuring vendors' top lines. Rising Demand for Workforce-Oriented Programs : After years of enrollment declines, the U.S. for-profit education sector is seeing renewed demand for programs with clear employment outcomes. Providers are leveraging flexible models to expand short-term credentials in healthcare, cybersecurity, skilled trades and IT. As employers prioritize job-ready skills over traditional degrees, adult learners and career changers are driving interest. Government reskilling initiatives and workforce partnerships, along with ongoing digital transformation, are further supporting demand for tech-aligned and non-degree programs. Meanwhile, healthcare and global institutions have been making substantial contributions to the companies' financial success. The U.S. healthcare sector is presently grappling with a pronounced shortage of skilled professionals. The companies have designed their programs to be rigorous and well-suited to address the workforce needs of the healthcare industry. Industry stakeholders also anticipate a future where the demand for healthcare professionals will outstrip the available supply. Amid the pressures of regulation and shifting demographics, the sector is witnessing consolidation. Larger, better-capitalized players are acquiring niche or financially weaker institutions to expand program offerings or gain regional accreditation. Strategic Education 's ( STRA ) acquisition of tech bootcamps and Adtalem 's continued integration of Walden University highlight ongoing M&A activity aimed at diversification and scale. Private equity interest in edtech and career-aligned training platforms also signals long-term confidence in segments of the for-profit education market that can prove ROI for students and employers alike. Meanwhile, Congress passed "Workforce Pell" in July 2025, expanding Pell eligibility to high-quality, short-term programs beginning July 1, 2026. For providers with accredited, outcomes-verified certificates in healthcare, IT, and skilled trades, this expands the addressable market and could structurally lift enrollment and pricing power, subject to program-quality metrics. Online Education and Tech Integration Drive Market Differentiation : The acceleration of digital learning continues to be a critical differentiator for for-profit colleges. Institutions like Grand Canyon Education, Strategic Education, and Adtalem have invested heavily in learning management systems, data analytics and adaptive learning tools to personalize instruction and enhance student engagement. The shift toward hybrid and asynchronous formats has allowed for-profit players to serve non-traditional and working students more effectively than many public institutions. Scalable digital platforms have also helped manage operating costs, enabling some companies to maintain or improve margins despite enrollment challenges. Zacks Industry Rank Indicates Dull Prospects The Zacks Schools industry is an 18-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #153, which places it in the bottom 37% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's positioning in the bottom 50% of the Zacks-ranked industries is a result of a lower earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. Since November 2025, the industry's earnings estimates for 2026 have decreased to $1.86 per share (from $1.87). Despite limited near-term visibility, we highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry's shareholder returns and current valuation backdrop. Industry Outperforms Sector, Lags S&P 500 The Zacks Schools industry has lagged the Zacks S&P 500 Composite but performed better than the broader Zacks Consumer Discretionary sector over the past year. The stocks in this industry have collectively lost 4.5% compared with the broader sector's 5.5% decline. Meanwhile, the S&P 500 has increased 17.3% in the said period. Industry's Current Valuation On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing for-profit education stocks, the industry is currently trading at 13.68X versus the S&P 500's 23.24X and the sector's 17.66X. Over the past five years, the industry has traded as high as 290.25X, as low as 12.68X and at a median of 19.78X. 3 School Stocks to Keep an Eye On Below, we have discussed three stocks from the industry that have solid growth potential. American Public Education : Based in Charles Town, WV, American Public Education delivers online and campus-based postsecondary education and career-focused learning across the United States. American Public Education's growth prospects are anchored in durable demand across military, nursing and healthcare education, supported by a simplified, more focused operating model. The company is benefiting from sustained enrollment momentum at Rasmussen University and Hondros College of Nursing, driven by workforce shortages, attractive career ROI and limited AI disruption in frontline healthcare roles. At APUS, steady demand from active-duty military, veterans and affiliated populations underscores the resilience of its mission-aligned student base. Ongoing operational streamlining, improved capital flexibility and plans to integrate its core institutions position APEI to scale programs, expand margins and compound growth over the medium term. APEI stock — currently sporting a Zacks Rank #1 (Strong Buy) — surged 94.5% in the past year. APEI has seen an upward estimate revision for 2026 earnings to $2.23 per share from $2.22 over the past 30 days. This company's earnings for 2026 are expected to grow 106.5% on 7.1% higher revenues. APEI's earnings topped the Zacks Consensus Estimate in all the last four quarters, with the average surprise being 173.7%. Moreover, APEI's three-to-five-year expected earnings per share growth rate is currently pegged at 15%. It also has a VGM Score of A. You can see the complete list of today's Zacks #1 Rank stocks here . Adtalem : The company provides healthcare-focused education in the United States and across Barbados, St. Kitts, and St. Maarten, and is headquartered in Chicago, IL. Adtalem has been gaining from sustained enrollment momentum across all three segments, particularly Walden and the Medical/Veterinary schools, its differentiated position as the largest healthcare-focused educator addressing structural talent shortages and expansion of programs and modalities such as Chamberlain's growing pre-licensure online BSN. Also, strategic partnerships that enhance access and career relevance (e.g., with Google Cloud, American Association of Post-Acute Care Nursing, ScribeAmerica), improved digital platform, student experience and retention initiatives, disciplined marketing and operational excellence, global and direct-admit pathways that broaden the recruitment funnel, and strong financial flexibility enabling continued capacity expansion, technology investment, and selective M&A bode well. Adtalem stock — currently carrying a Zacks Rank #2 (Buy) — gained 0.9% in the past year. Adtalem has seen an upward estimate revision for fiscal 2026 and 2027 earnings to $7.87 per share from $7.85 and $9.05 per share from $8.92 over the past seven days, respectively. This company's earnings for fiscal 2026 and 2027 are expected to grow 18% and 14.9%, respectively. ATGE's earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.5%. Moreover, ATGE's three-to-five-year expected earnings per share growth rate is currently pegged at 15%. It has a VGM Score of B. Stride : Based in Reston, VA, Stride provides technology-driven online curriculum, software and education services that support student enrollment, learning and progress tracking in the United States and internationally. Durable structural demand for alternative K-12 education bodes well for Stride, as families increasingly seek flexible, personalized learning models beyond traditional classrooms. Management highlights consistently strong application volumes and resilient enrollments, underscoring the essential nature of its offerings and the depth of unmet demand. Growth is further driven by the expanding Career Learning portfolio, which aligns education with workforce readiness and appeals to students seeking practical, skills-based pathways. Platform stabilization and ongoing technology enhancements are improving the user experience, strengthening retention and partner confidence. A favorable state funding backdrop, disciplined cost structure and a strong balance sheet provide flexibility to invest in curriculum, technology and partnerships, positioning Stride to return to sustained, long-term growth as demand continues to outstrip capacity. LRN stock — currently carrying a Zacks Rank #3 (Hold) — lost 37.1% in the past year. LRN has seen an upward estimate revision for fiscal 2026 earnings to $8.36 per share from $8.35 over the past seven days. This company's earnings for fiscal 2026 are expected to grow 3.2% on 5.1% higher revenues. LRN's earnings topped the Zacks Consensus Estimate in three of the last four trailing quarters and missed on one occasion, with the average surprise being 13.2%. Moreover, LRN's three-to-five-year expected earnings per share growth rate is currently pegged at 20%. It has a VGM Score of A. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Public Education, Inc. (APEI) : Free Stock Analysis Report Stride, Inc. (LRN) : Free Stock Analysis Report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments Terms and Privacy Policy Privacy Dashboard More Info
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