Perdoceo Education (PRDO) Drops 0.49% Despite 23.72% Weekly Gain

Perdoceo Education (PRDO) shares experienced a slight decline of 0.49% today, marking the second consecutive day of losses, with a total decrease of 1.59% over the past two days. However, the stock price reached its highest level since November 1999, with an intraday gain of 2.36%.

Over the past five years, the strategy of buying PRDO shares after they reached a high and holding for one week resulted in a -0.88% return, significantly underperforming the benchmark with a 41.68% return. The strategy's CAGR was -0.38%, and it experienced a maximum drawdown of -5.05%, highlighting its poor performance and high risk, as indicated by a Sharpe ratio of -0.12 and a volatility of 3.13%.

Perdoceo Education's stock price has been influenced by several factors, including momentum investing, earnings estimate revisions, and analyst ratings. The company currently holds a Momentum Style Score of A and a Zacks Rank of #2 (Buy), indicating strong momentum. Over the past week, PRDO shares rose by 23.72%, significantly outperforming the Zacks Schools industry, which was up by 4.51%. Over the past month, PRDO showed a 22.1% increase compared to the industry's 14.21%.

Positive revisions in earnings estimates have also contributed to boosting PRDO's outlook. Over the past two months, the consensus estimate for the current fiscal year has increased from $2.41 to $2.49 per share, with no downward revisions noted. This upward trend in earnings estimates reflects a positive sentiment and outlook for the company.

Analysts have shown confidence in Perdoceo Education's future performance. Barrington Research recently raised its target price for the stock from $35.00 to $38.00 and gave it an "outperform" rating. This positive rating and increased target price suggest that analysts expect the company to continue performing well in the future.