Wall Street analysts are bullish on Scholastic (SCHL) and Perdoceo Education (PRDO), with price targets suggesting significant upside potential. However, they are less enthusiastic about Diebold Nixdorf (DBD), citing declining sales and negative returns on capital. Scholastic's revenue has declined annually over the last two years, and its ROIC is low, while Diebold Nixdorf's cash burn and value destruction raise concerns. Perdoceo Education, on the other hand, has an excellent operating margin, robust free cash flow margin, and high return on capital.
Wall Street analysts have shown a bullish outlook on two educational companies, Scholastic (SCHL) and Perdoceo Education (PRDO), with price targets suggesting significant upside potential. However, they are less enthusiastic about Diebold Nixdorf (DBD), citing declining sales and negative returns on capital.
Scholastic, the world's largest publisher and distributor of children's books, reported fourth-quarter financial results that exceeded analyst expectations. The company's adjusted earnings per share of 87 cents surpassed the consensus estimate of 85 cents, and revenue increased by 7% to $508.3 million [1]. This strong performance was driven by growth in the Children's Book Publishing and Distribution segment, which saw a 5% increase in sales. However, the Education Solutions segment faced challenges, with sales declining by 16% due to ongoing weakness in the supplemental curriculum market. Analysts remain optimistic about Scholastic's future, with the company providing guidance for revenue growth between 2% and 4% for fiscal year 2026 [1].
Perdoceo Education, a provider of educational technology solutions, has received a positive review from analysts. The company boasts an excellent operating margin, robust free cash flow margin, and high return on capital. This strong financial performance has led to a bullish outlook, with analysts expecting significant upside potential [2].
In contrast, analysts have expressed concerns about Diebold Nixdorf. The company has seen declining sales and negative returns on capital, raising concerns about its long-term prospects. Diebold Nixdorf's cash burn and value destruction have also raised eyebrows among investors [2].
While Scholastic and Perdoceo Education have shown strong financial performance and growth potential, Diebold Nixdorf faces significant challenges that could impact its future prospects.
References:
[1] https://markets.financialcontent.com/stocks/article/stockstory-2025-7-25-scholastic-schl-stock-trades-up-here-is-why
[2] https://www.tradingview.com/news/tradingview:e7baa9498ee89:0-scholastic-corp-sec-10-k-report/
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