New Oriental Education & Technology Group Inc. (NYSE: EDU) is currently trading nearly -4.70% and -8.34% away from the simple moving averages for 20 and 50 days, respectively. The company is expected to report earnings of $0.29 per share for this quarter, projected to increase to $1.92 by fiscal year 2024. Analysts estimate the company’s revenue for the quarter at $718.4 million, with a low estimate of $717 million and a high estimate of $719.71 million. New Oriental Education & Technology Group Inc.’s stock has been forecasted to trade at an average price of $50.73 over the next 52 weeks, with a low of $38.00 and a high of $65.00. The technical analysis of the stock shows that the PEG ratio is currently about 0, and the beta value is 0.60. In comparison to its peers, EDU has fared considerably weaker in the market, showing an intraday change of -3.32% in the last session, while over the past year, it grew by 182.03%. Insiders own nearly 0.20% of the company’s shares, while institutional investors own 55.60% of the shares. Data on historical trading for EDU indicates that the trading volumes over the past 10 days have averaged 2.23 million, and over the past 3 months, they’ve averaged 2.40 million.
New Oriental Education & Technology Group Inc. (NYSE: EDU) Anticipated to Drop by 73.29% in the Near Future
On March 24, 2023, shares of New Oriental Education & Technology Group Inc. (NYSE: EDU) rose in value by -3.32% compared to the previous day’s close, thanks to strong demand from buyers. With a market capitalization of around $6.66 billion, investors eagerly await the results for this quarter, which are scheduled to be announced between April 24 and April 28, 2023. Consequently, investors may want to see an increase in the stock’s price before the company releases its earnings report.
Analysts estimate the company’s earnings per share (EPS) for this quarter to be $0.29, projected to increase to $0.23 for fiscal year $1.17 and then to about $1.92 by fiscal year 2024. The EPS growth is expected to be 119.00% in 2024, while the next year’s EPS growth is forecast to be 64.10%.
Data also indicates that the company’s revenue for the quarter is estimated to be $718.4 million, with a low estimate of $717 million and a high estimate of $719.71 million. Analysts on Wall Street predict that in 2024, the company’s year-on-year revenues will reach $2.74 billion, representing an -11.80% decrease from the revenues reported in last year’s results.
Revisions can provide useful insights into short-term price movements. However, there have been no upward or downward revisions in the last seven days for this company. EDU’s technical picture suggests that short-term indicators denote the stock is a Hold on average. Medium-term indicators put the stock in the category of 50% Buy, while long-term indicators on average have been pointing out that it is a 100% Buy.
Fifteen analysts have assigned their ratings of the stock’s forecast evaluation on a scale of 1.00-5.00 to indicate a strong buy to a strong sell recommendation. One analyst rates the stock as a Hold, twelve recommend it as a Buy, and two classify the EDU stock as Overweight. In the meantime, none of the analysts believe the stock is Underweight, and none consider it a Sell. Thus, investors looking to increase their holdings of the company’s stock will have an opportunity to do so as the average rating for the stock is Buy.
New Oriental Education & Technology Group Inc. (NYSE: EDU) Technical Analysis and Comparison with Peers
The technical analysis of New Oriental Education & Technology Group Inc.’s stock (NYSE: EDU) shows that the price-to-earnings growth (PEG) ratio is currently about 0. The stock is trading nearly -4.70% and -8.34% away from the simple moving averages for 20 and 50 days, respectively. The Relative Strength Index (RSI, 14) indicates a reading of 45.28, while the 7-day volatility ratio is showing 4.54%, and the 30-day chart stands at 5.15%. The beta value for EDU is 0.60, and the average true range (ATR) is 2.37. Analysts’ median price target for the company is $51.00, representing a decrease of -35.96% from current levels. Furthermore, the company’s stock has been forecasted to trade at an average price of $50.73 over the next 52 weeks, with a low of $38.00 and a high of $65.00. Based on these price targets, the low is -1.31% off the current price, whereas the price has to move -73.29% to reach the yearly target high.
A comparison of EDU with its peers suggests that the former has fared considerably weaker in the market. The stock showed an intraday change of -3.32% in the last session, and over the past year, it grew by 182.03%. In comparison, Grand Canyon Education Inc. (LOPE) has moved higher at 1.09% on the day and was up 15.02% over the past 12 months. On the other hand, the price of Pearson plc (PSO) has fallen -0.10% on the day. The stock, however, is off -3.39% from where it was a year ago. The overall performance of the S&P 500 during the last trading session shows that it gained 0.56%, while the Dow Jones Industrial improved by 0.41%.
Data on historical trading for EDU indicates that the trading volumes over the past 10 days have averaged 2.23 million, and over the past 3 months, they’ve averaged 2.40 million. According to the company’s latest data on outstanding shares, there are 169.70 million shares outstanding. Insiders own nearly 0.20% of New Oriental Education & Technology Group Inc.’s shares, while institutional investors own 55.60% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 4.64 million shares as of Jan 12, 2023, resulting in a short ratio of 1.58. The short interest in EDU stood at 2.73% of shares outstanding as of Jan 12, 2023, with the number of short shares registered in Dec 14, 2022, reaching 6.23 million.
The stock has risen by 7.73% since the beginning of the year, indicating the potential for further growth. This could raise investors’ confidence to be optimistic about the EDU stock heading into the next quarter.
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