D/E 0.33 — less debt than most Consumer Defensive peers (≈25th pctile)
P/E14.3xA-
P/E 14.3 — cheaper than most Consumer Defensive peers (≈25th pctile)
PEG0.51A-
PEG 0.51 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 89.3
Quality0.80
Growth0.97
Value0.92
Why this score
Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
47% off the 12-month high
vs DCF fair value42% belowest. fair value ~$156
Quality signals · context only
Gross profitability40% · B+gross profit ÷ total assets (Novy-Marx)
ROIC15.4% · A-return on invested capital — not score-weighted
Why now
Stride, Inc. is a high-quality compounder trading at a deep discount, with a remarkable PEG ratio of 0.51 that belies its robust 17.9% revenue growth. The company's ability to generate $414m in free cash flow against a modest $3.9b market cap underscores its operational efficiency and capital-light model, making it a compelling investment for long-term growth. The crux is the market's persistent undervaluation of its consistent execution in the expanding online education sector.
Moat
Stride's durable edge stems from its proprietary and third-party online curriculum, software systems, and educational services, which are deeply embedded in client operations. The provision of an "integrated package of systems, services, products, and professional expertise to support a virtual or blended public school" creates significant switching costs for its clients, ensuring sticky revenue streams. This deep integration and value proposition contribute to its strong 18.8% ROE, reflecting pricing power and operational efficiency in a specialized market.
Risk
The bear case hinges on the market's skepticism regarding the long-term sustainability of demand for online education, evidenced by the stock's significant decline from its 52-week high of $171.17 to its current $91.09. While fundamentals appear strong, a potential shift in educational preferences or increased competition in providing "individual online courses and supplemental educational products" could pressure future growth. A sustained deceleration in its 17.9% revenue growth or a contraction in its 12.2% profit margin would confirm the bear's concerns.
Horizon
1-3 yr $98.38 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $124.20 at ~6% CAGR — dividend + buyback compounding. 10 yr $159.28 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · LRN
$
%
%
Shares to buy
21
Position size
$1,913
3.8% of portfolio
Stop price
$68.32
25% below $91.09
$ at risk if stopped
$478.22
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Stride, Inc. (LRN): score, valuation & FAQ
Stride, Inc. (LRN) is a Education & Training Services company that scores 89.3 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), P/E (A-) and PEG (A-). On valuation, LRN sits about 42% below our discounted-cash-flow fair value (a margin of safety).
Is LRN a good stock to buy?
Bull Rankings scores LRN 89.3 out of 100 on its quality-growth model, which is a strong reading. That is driven by D/E (A-), P/E (A-) and PEG (A-). A score is a quantitative screen of Stride, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does LRN score 89.3 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). LRN earns its highest marks on D/E (A-), P/E (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is LRN overvalued or undervalued?
Based on $91.09, LRN sits about 42% below our discounted-cash-flow fair value (a margin of safety). It trades at a 14.3x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in LRN?
The bear case hinges on the market's skepticism regarding the long-term sustainability of demand for online education, evidenced by the stock's significant decline from its 52-week high of $171.17 to its current $91.09. While fundamentals appear strong, a potential shift in educational preferences or increased competition in providing "individual online courses and supplemental educational products" could pressure future growth. A sustained deceleration in its 17.9% revenue growth or a contraction in its 12.2% profit margin would confirm the bear's concerns.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.