Businesses and schools have finally started reopening in the United States but not everyone is inclined toward physically attending them given the surge in new coronavirus cases. After registering a record 50,000+ coronavirus cases on Thursday, the United States recorded another around 40,000 new cases on Sunday.
This definitely is reason enough for people to once again stay indoors. Although most Americans expect all schools to reopen in the fall, there are chances that teachers and students may not be there. This made schools shift to online education to help students complete their semester this year and with growing fears it is likely that most will prefer learning from remote locations.
Coronavirus Fears Growing
Although states have started reopening, fears too have come back haunting after a surge in fresh coronavirus cases. The United States recorded 39,379 new coronavirus cases on Sunday and many states are contemplating putting a brake on their reopening plans.
The U.S. education system has been one of the biggest casualties of the pandemic, with both teachers and students hesitant to go to school. However, students and teachers over the past couple of months have been well adapting to remote learning. Also, a recent Ipsos/USA Today found that 20% of teachers are unlikely to go back to school if their classrooms reopen in the fall. A separate survey of parents, with at least one child in K-12, say 30% are very likely to opt for at-home learning.
Online Education to Gain Traction
Schools across the world have started imparting classes online given that there are no immediate signs of coronavirus subsiding. In fact, countries that are reopening economies are witnessing a spike in fresh COVID-19 cases.
A report from UNESCO says more than 1 billion students globally have been prevented from attending schools, colleges and universities. Although most students are staying at home during this time, they can keep on learning with various video lectures, online seminars, animations, reading materials and even opt for online tests. This is where online education can be a game changer.
The online segment presently comprises a small fraction of the $2.2 trillion global higher education market — less than 2%, according to market intelligence firm HolonIQ — but the appetite from students for online offerings is likely to grow because of the coronavirus disruption. According to market research firm Technavio, online education market is poised to grow by $247.46 billion during 2020-2024, progressing at a CAGR of over 18% during the forecast period.
With no timeline for a possible coronavirus vaccine, it is likely that parents, students as well as teachers are likely to prefer shifting to online education. Given this scenario, it would be prudent to keep a close watch on these four online education providers that are poised to grow.
Career Education Corporation PRDO offers bachelor’s, associate and non-degree programs in information technologies, visual communication and design technologies.
The company’s expected earnings growth rate for the current year is 10.2%. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the past 30 days. Career Educationcarries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chegg Inc. CHGG offers Chegg Services, comprising digital products and services such as Chegg Study, Chegg Writing and Chegg Tutors. These allow students to find human help on its learning platform through a network of live tutors.
The company’s expected earnings growth rate for the current year is 31.9%. The Zacks Consensus Estimate for current-year earnings has improved 10.1% over the past 30 days. Chegg carries a Zacks Rank #2 (Buy).
American Public Education, Inc. APEI is an online provider of higher education, focused primarily on serving the military and public service communities.
The company’s expected earnings growth rate for next year is 35.3%. The Zacks Consensus Estimate for current-year earnings has improved 14.9% over the past 60 days. American Public Education has a Zacks Rank #2.
Universal Technical Institute Inc UTI provides technical education training in automotive, diesel, collision repair and refinishing, motorcycle, marine and personal watercraft technologies.