Grand Canyon Education, Inc. (LOPE) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Grand Canyon Education (LOPE)? Shares have been on the move with the stock up 24% over the past month. The stock hit a new 52-week high of $164.93 in the previous session. Grand Canyon Education has gained 23.9% since the start of the year compared to the 8.8% move for the Zacks Consumer Discretionary sector and the 8.7% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2024, Grand Canyon Education reported EPS of $1.48 versus consensus estimate of $1.46 while it missed the consensus revenue estimate by 0.42%.For the current fiscal year, Grand Canyon Education is expected to post earnings of $8.03 per share on $1.03 billion in revenues. This represents a 14.06% change in EPS on a 7.23% change in revenues. For the next fiscal year, the company is expected to earn $8.81 per share on $1.11 billion in revenues. This represents a year-over-year change of 9.71% and 7.73%, respectively.Valuation MetricsGrand Canyon Education may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Grand Canyon Education has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 20.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.1X. On a trailing cash flow basis, the stock currently trades at 20.1X versus its peer group's average of 12.4X. Additionally, the stock has a PEG ratio of 1.36. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Grand Canyon Education currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Grand Canyon Education fits the bill. Thus, it seems as though Grand Canyon Education shares could still be poised for more gains ahead.How Does LOPE Stack Up to the Competition?Shares of LOPE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Adtalem Global Education Inc. (ATGE). ATGE has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.Earnings were strong last quarter. Adtalem Global Education Inc. beat our consensus estimate by 15.18%, and for the current fiscal year, ATGE is expected to post earnings of $5.81 per share on revenue of $1.72 billion.Shares of Adtalem Global Education Inc. have gained 24.6% over the past month, and currently trade at a forward P/E of 15.57X and a P/CF of 10.77X.The Schools industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LOPE and ATGE, even beyond their own solid fundamental situation.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 Grand Canyon Education, Inc. (LOPE): Free Stock Analysis Report Adtalem Global Education Inc. (ATGE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks