Legacy Education Inc. (LGCY) Drops 2.75% Despite Strong Earnings

Legacy Education Inc. (LGCY) experienced a 2.75% decline today, with the share price rising to its highest level since February 2025, despite an intraday decline.

The strategy of buying LGCY shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.33% annualized return and a 1.77% maximum drawdown. However, performance was inconsistent across different time periods, with a 20.38% loss in 2023, but a 15.66% gain in 2024. This suggests that while the strategy showed resilience in certain years, it was not immune to market volatility. Investors should consider their risk tolerance and market conditions before adopting this strategy.

Legacy Education Inc. has recently been recognized for its strong price performance, leading to an upgrade to a Zacks Rank #2 (Buy). This upgrade reflects growing optimism about the company's earnings prospects, which has positively influenced investor sentiment.

The company released new presentation materials on May 19, 2025. These materials are expected to offer valuable insights into Legacy Education's future strategies and performance expectations, potentially attracting more investors and driving further growth.

Legacy Education has demonstrated continued double-digit growth, with revenue growth accelerating from 29.2% in Q2 to 50.7% in Q3. Additionally, new student starts saw a significant jump from 3% growth in Q2 to 70.7% in Q3, indicating strong market demand and effective business strategies.

Legacy Education Inc. has outperformed the Consumer Discretionary sector so far this year, with a year-to-date return of 9.1%. The consensus EPS estimate for the current year has increased by 2.6% over the past three months, further solidifying the company's positive outlook and strong market position.

The company's Q3 earnings and revenue exceeded estimates, contributing to its positive stock performance. This financial success underscores Legacy Education's ability to deliver on its growth promises and maintain investor confidence.