The U.S. education sector has seen diverse growth fueled by factors such as the growing popularity of e-books, the expansion of online learning platforms, increased demand for healthcare professionals, advancements in technology, the adoption of hybrid teaching models, and strategic acquisitions targeting global expansion. Despite these advancements, companies within the Zacks Schools industry face challenges, including higher advertising and marketing costs, expenses tied to online education, and the emerging threat posed by generative artificial intelligence (AI).
Despite these hurdles, players in the industry, such as Grand Canyon Education, Inc. (LOPE – Free Report) , Stride, Inc. (LRN – Free Report) , Adtalem Global Education Inc. (ATGE – Free Report) , Universal Technical Institute, Inc. (UTI – Free Report) and Lincoln Educational Services Corporation (LINC – Free Report) , are expected to benefit from innovative product offerings, particularly those incorporating AI and game-based learning, alongside prudent cost management and a focus on profitability. For-profit education companies are also forming partnerships with corporations and community colleges to enhance workforce education.
