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High-Potential High Tech: Educational Online Services Yielding Profit

Have you already opened your letter from Hogwarts? Or have you had a special invitation from the principal of Nevermore Academy? After the release of Wednesday, and with Christmas right around the corner, these two questions may sting. Luckily, we live in 2022, and there’s tons of super cool (almost magical) education tech services which can replace the School of Witchcraft and Wizardry. That bad part of living in 2022? Prospects for most industries and markets are as foggy as the Forbidden Forest. So to help remedy that, we’ve found edtech stocks that may climb in the next 12 months.

 

We took different companies that are engaged in education and chose the most promising ones according to the average analyst forecasts. Feel like creating your own list of high-potential companies? Luckily for you – you can do so with the stock screener. So without further ado, let’s dive in.

Hogwarts was founded in the 10th century, Nevermore Academy – in 1791, and Nerdy – in 2007. But its youth doesn’t prevent the company from being the leader in our estimation. Nerdy is engaged in online learning using leading edge technologies, AI in particular. There are various educational formats – individual studies, small group classes, large group classes, adaptive self-study. Nerdy’s main product however is a platform called Varsity Tutors, which allows students to participate in online tutoring. 

One of the reasons why Nerdy will possibly follow the upward trend is the fact that its stock looks underestimated. Its fair value should be much higher. Other positive factors include its annual earnings growth and forecasted revenue growth. 

But there’s more in Nerdy than meets the eye. The company is not profitable and won’t be in the next several years. The stock might also be pretty volatile, therefore you should be careful and not rush in when making a decision. The average analyst forecast for Nerdy stock is an increase of up to 116% in the next 12 months. And if you’re a trader, you can also try to get profit from sudden (but strategic) movements –  it might be a little easier if you keep an eye on the most active stocks right now.

The next school for those with exceptional powers – oh, we mean edtech company – is Docebo. This Canadian firm has developed a platform for corporate education. Docebo was on top during Covid-19 and saw huge growth – so, it makes sense that these guys were skyrocketing together with Zoom and other darlings of the pandemic. Also, it’s logical that over the last two years, the stock’s value has been steadily decreasing.

Regardless, Docebo still remains a firm that analysts name when talking about Canadian far-reaching tech. And many experts are sure that Docebo will have a great future because virtual learning software will be top-of-the-agenda for lots of businesses in the long-term. The average forecast made by analysts around the globe is a 67% increase in the next year.

The bronze medal in our supernatural competition goes to… the green owl from Duolingo! We know you’ve been waiting for it. Unfortunately, we’re not sure what Duo (yes, that’s the name of the bird) was doing during his teen years – rumor has it he took a side job as a postman for Dumbledore.

Despite his wild youth, Duo is now a superstar. He chats with users in one of the most popular and rapidly growing language learning apps. Duolingo simultaneously shows outstanding growth of monthly active users (56 millions, +35% over the year) and paid subscribers (3.7 millions, +68% over the year). And it’s in a niche where a room to grow still exists. The average forecast for Duolingo stocks is a 63% increase in the next 12 months.

Two other companies we recommend you to make notice of are Coursera and Udemy. These are two popular online course platforms where you can find almost everything, including Defence Against the Dark Arts course, teach-yourself quidditch tutorial and poisonous plants video lessons. Maybe not, but it’s worth trying.  We also can’t guarantee that analyst forecasts will be correct, but you should know – experts assume that Coursera and Udemy stocks will rise next year. The average forecast is an increase of 54% for Coursera and 49% for Udemy.

Now you have the list that consists of five auspicious stocks. Does that mean this is the moment to buy ‘em all and start rehearsing Wednesday’s ball dance to celebrate your profit? Of course, you should learn the dance – it’s extremely cool! But you shouldn’t invest without making your own analysis. This rule is a spell you must never forget.