Strategic Education, Inc.
Strategic Education, Inc. (NASDAQ: STRA) is a holding company for educational services that provide flexible and inexpensive associate, bachelor's, master's, and doctorate programmes. In the United States and Australia/New Zealand, Strategic Education offers courses. Strayer University, Capella University, and an Australia/New Zealand section are all part of the company.
Why should Investors Exit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Source: Analysis by Kalkine Group
Given the volatile market condition, stocks with relatively weak fundamentals and lower return generating business could witness hefty adjustment in the current valuation. Also, long-term trend is still bearish in STRA stock, as stock is trading well below its crucial 200-day SMA. Further, we have valued the stock using the EV/ Sales multiple based relative valuation methodology and arrived at a target price of USD 53.79 as of February 25, 2022. Based on the decline in the bottom line, Ukraine crisis, regulation risk, unfavourable technical indicators, and current valuation, we recommend a “SELL" rating on the stock at the closing price of USD 60.74, up 21.36%, as of February 25, 2022.
1-Year Technical Price Chart (as of February 25, 2022). Source: REFINITIV, Analysis by Kalkine Group
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.