Strategic Education, Inc. (STRA)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Strategic Education, Inc. (STRA) trades at $82.42 with AI Score 84/100 (Grade A+). Strategic Education, Inc. provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. Market cap: $1.87B, Sector: Consumer defensive.
Price live · AI analysis from May 10, 2026STRA stock analysis for 2026: Analysts have set a consensus price target of $87.00 for Strategic Education, Inc., suggesting 5.6% upside from the current price of $82.42. The AI MoonshotScore is 84/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
STRA: 5/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Strategic Education, Inc. (STRA) Consumer Business Overview
Strategic Education, Inc. delivers post-secondary education and job-ready skills programs through online and campus-based institutions. With a diverse portfolio including Strayer and Capella Universities, the company addresses evolving workforce demands, positioning itself as a key player in the education and training services sector.
What Is the Investment Thesis for STRA?
Strategic Education, Inc. presents a compelling investment case based on its diverse educational offerings and strategic positioning in the growing education and training services market. With a P/E ratio of 12.7 and a profit margin of 10.2%, the company demonstrates financial stability. Growth catalysts include the expansion of online programs and the increasing demand for workforce development solutions. The company's dividend yield of 2.99% provides an additional incentive for investors. However, potential risks include increased competition in the online education market and regulatory changes affecting the education sector. The company's beta of 0.54 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
STRA Key Highlights
- Market Cap of $1.87B reflects Strategic Education's substantial presence in the education services market.
- P/E Ratio of 12.7 indicates a potentially undervalued stock compared to industry peers.
- Profit Margin of 10.2% demonstrates the company's ability to generate profit from its revenue.
- Gross Margin of 49.3% highlights the efficiency of Strategic Education's educational programs and services.
- Dividend Yield of 2.99% provides a steady income stream for investors, enhancing the stock's attractiveness.
Who Are STRA's Competitors?
STRA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| LRN Stride, Inc. | $90.27 | -0.19% | $3.84B | 96 |
| CHGG Chegg, Inc. | $1.00 | -0.99% | $111.96M | — |
| COUR Coursera, Inc. | $6.00 | +1.69% | $1.02B | — |
| AIU Meta Data Limited | $0.61 | +2.50% | $37.56M | 64 |
| PRDO Perdoceo Education Corporation | $34.43 | +3.55% | $2.16B | 62 |
| TAL TAL Education Group | $9.89 | +0.87% | $6.02B | 62 |
| GOTU Gaotu Techedu Inc. | $1.75 | -0.29% | $632.99M | 60 |
| ARCE Arco Platform Limited | $13.98 | -0.07% | $927.43M | 58 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are STRA's Key Strengths?
- Diverse portfolio of educational institutions and programs.
- Strong brand recognition of Strayer and Capella Universities.
- Established relationships with employers through Workforce Edge.
- Proprietary online learning platforms and technologies.
What Are STRA's Weaknesses?
- Dependence on tuition fees for revenue.
- Exposure to regulatory changes and government funding policies.
- Competition from other online education providers.
- Potential for negative publicity related to student outcomes.
What Could Drive STRA Stock Higher?
- Continued expansion of online program offerings to meet growing demand.
- Strategic partnerships with employers to enhance workforce development solutions.
- Potential acquisitions of complementary businesses to expand market reach.
- Development of new programs in high-demand fields such as data science and cybersecurity.
What Are the Key Risks for STRA?
- Insider selling — insiders were net sellers of roughly $8.1M recently.
- Increased competition in the online education market could lead to pricing pressure.
- Changes in government funding for higher education could negatively impact revenue.
- Economic downturn could affect student enrollment and tuition revenue.
- Cybersecurity threats and data breaches could damage the company's reputation.
- Regulatory scrutiny of online education programs could lead to increased compliance costs.
What Are the Growth Opportunities for STRA?
- Expansion of Online Programs: Strategic Education can capitalize on the increasing demand for online education by expanding its online program offerings at Strayer and Capella Universities. The global online education market is projected to reach $325 billion by 2025, providing a significant growth opportunity. By investing in technology and marketing, Strategic Education can attract more students to its online programs and increase revenue.
- Workforce Development Solutions: The company can leverage its Workforce Edge platform to provide education benefits administration solutions to employers. As companies increasingly invest in employee training and development, the demand for workforce development solutions is growing. Strategic Education can partner with more employers to offer its platform and expand its reach in the corporate training market.
- International Expansion: Strategic Education can expand its presence in international markets, particularly in Asia and Latin America, where the demand for higher education is increasing. By establishing partnerships with local institutions or acquiring existing education providers, the company can tap into new markets and diversify its revenue streams. The international education market is projected to reach $280 billion by 2027.
- Strategic Acquisitions: Strategic Education can pursue strategic acquisitions to expand its portfolio of educational institutions and programs. By acquiring companies with complementary offerings, the company can strengthen its competitive position and increase its market share. Potential acquisition targets include vocational training providers, online education platforms, and international universities.
- Development of New Programs: Strategic Education can develop new programs in high-demand fields such as data science, artificial intelligence, and cybersecurity. By offering programs that align with the needs of the job market, the company can attract more students and increase its enrollment. The demand for professionals in these fields is growing rapidly, providing a significant opportunity for Strategic Education to capitalize on.
What Opportunities Does STRA Have?
- Expansion of online program offerings.
- Growth in workforce development solutions.
- International expansion into new markets.
- Strategic acquisitions of complementary businesses.
What Threats Does STRA Face?
- Increased competition in the online education market.
- Changes in government funding for higher education.
- Economic downturn affecting student enrollment.
- Cybersecurity threats and data breaches.
What Are STRA's Competitive Advantages?
- Brand reputation and recognition of Strayer and Capella Universities.
- Diverse portfolio of educational institutions and programs.
- Established relationships with employers through Workforce Edge.
- Proprietary online learning platforms and technologies.
What Does STRA Do?
Strategic Education, Inc., founded in 1892 and headquartered in Herndon, Virginia, has evolved into a leading provider of education services. The company operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. Its U.S. Higher Education segment includes Strayer University, offering undergraduate and graduate degrees in fields like business administration and information technology, both online and at physical campuses. Capella University, another key component, provides online bachelor's, master's, and doctoral programs tailored to working adults. The Australia/New Zealand segment features Torrens University, offering a range of courses in business, design, health, and hospitality, alongside vocational training through Think Education and creative media education via Media Design School. The Education Technology Services segment includes Workforce Edge, a platform for managing employer education benefits, and Sophia Learning, which offers lower-cost education programs. Strategic Education's diverse portfolio and global reach enable it to cater to a wide range of students and employers, positioning it as a significant player in the education sector.
What Products and Services Does STRA Offer?
- Provides undergraduate and graduate degree programs through Strayer University.
- Offers online bachelor's, master's, and doctoral degree programs through Capella University.
- Operates Torrens University in Australia, offering courses in business, design, health, and hospitality.
- Provides vocational training through Think Education.
- Offers courses in 3D animation, game art, and digital media through Media Design School.
- Offers Workforce Edge, a platform for education benefits administration.
- Provides lower-cost education programs through Sophia Learning.
How Does STRA Make Money?
- Generates revenue through tuition fees from students enrolled in its various educational programs.
- Partners with employers to provide education benefits to their employees through Workforce Edge.
- Offers subscription-based access to its online learning platforms and resources.
What Industry Does STRA Operate In?
Strategic Education operates in the education and training services industry, which is experiencing growth driven by increasing demand for online learning and workforce development programs. The market is competitive, with players ranging from traditional universities to online education platforms. Strategic Education differentiates itself through its diverse portfolio of institutions and programs, catering to a wide range of students and employers. The industry is also subject to regulatory scrutiny and changes in government funding policies, which can impact the company's operations and financial performance.
Who Are STRA's Key Customers?
- Students seeking undergraduate and graduate degrees.
- Working adults looking to advance their careers through online education.
- Employers seeking to provide education benefits to their employees.
- Individuals seeking vocational training and skills development.
Company Profile
Strategic Education, Inc. operates in the Education & Training Services industry within the Consumer Defensive sector. It is headquartered in Herndon, US. The company is led by CEO Karl McDonnell. STRA has traded publicly since 1996.
F-Score 7/9Financial Health
Strategic Education, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.59 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 8%Key Financial Metrics
Return on equity for Strategic Education, Inc. stands at 7.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.2%, showing how much profit it generates from its asset base. STRA trades at a trailing price-to-earnings ratio of 12.75, below the Consumer Defensive sector average of ~29x. Its free cash flow yield is 9.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.4%, the inverse of the P/E and a quick read on earnings relative to price.
STRA Valuation & Market Position
With a $1.87B market cap, Strategic Education, Inc. sits in the small-cap segment of the market. Relative to its peer group, STRA's quantitative score of 84/100 is roughly in line with the peer average of 74/100.
FY2026 estForward Outlook
Wall Street analysts project Strategic Education, Inc. revenue of about $1.29B for fiscal 2026, with EPS near $7.19.
Net sellingInsider Activity
Over the past six months, Strategic Education, Inc. insiders filed 30 SEC Form 4 transactions — 13 sales and 17 purchases. On net that is roughly 12K shares disposed (about $8.1M), a signal worth weighing alongside the fundamentals.
STRA Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- STRA's recent insider buying suggests confidence in the company's future performance, mirroring situations like when insiders loaded up on Google before major announcements.
- Community sentiment indicates a growing belief in the long-term value of online education, similar to the early days of cloud computing adoption.
- Market perception views STRA as a stable player in a growing sector, much like how established consumer brands are seen during economic uncertainty.
- Bullish community members highlight STRA's potential for expansion into new markets, reminiscent of Netflix's global expansion strategy.
Bear Case
- Recent community discussions express concerns about increased competition in the online education space, akin to the challenges faced by early streaming services.
- Bearish sentiment focuses on potential regulatory changes affecting for-profit education, similar to the regulatory hurdles faced by the cannabis industry.
- Market perception questions STRA's ability to adapt quickly to changing student needs, comparable to the struggles of legacy tech companies to innovate.
- Some insider selling, while not always negative, raises questions about short-term growth prospects, similar to concerns surrounding some executive departures at established firms.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
STRA Latest News
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STRA or LINC: Which Is the Better Value Stock Right Now?
zacks.com · Jun 15, 2026
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Zacks.com featured highlights include StoneCo, USANA Health, Strategic Education, Nexa Resources and CVS
Zacks · Jun 15, 2026
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Tech Skills Academy Launch Adds Employer Upskilling Angle To STRA Valuation Story
Yahoo! Finance: STRA News · Jun 12, 2026
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Should Value Investors Buy Strategic Education (STRA) Stock?
zacks.com · Jun 10, 2026
STRA Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STRA.
Price Targets
Consensus target: $87.00
STRA MoonshotScore
What does this score mean?
The MoonshotScore rates STRA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Education & Training ServicesLatest News
STRA or LINC: Which Is the Better Value Stock Right Now?
Zacks.com featured highlights include StoneCo, USANA Health, Strategic Education, Nexa Resources and CVS
Tech Skills Academy Launch Adds Employer Upskilling Angle To STRA Valuation Story
Should Value Investors Buy Strategic Education (STRA) Stock?
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3 min readLeadership: Karl McDonnell
President and Chief Executive Officer
Karl McDonnell has served as the President and Chief Executive Officer of Strategic Education, Inc. since 2013. Prior to that, he held various leadership positions within the company, including Chief Operating Officer and Chief Financial Officer. McDonnell has a strong background in finance and operations, with experience in the education and technology sectors. He holds a bachelor's degree in business administration from George Mason University and an MBA from the University of Virginia's Darden School of Business.
Track Record: Under Karl McDonnell's leadership, Strategic Education has expanded its online program offerings, grown its workforce development solutions, and increased its market share in the education sector. He has overseen the acquisition of several complementary businesses, including Capella Education Company and Hackbright Academy. McDonnell has also focused on improving student outcomes and increasing the company's social impact.
STRA Consumer Defensive Stock FAQ
What does Strategic Education, Inc. do?
Strategic Education, Inc. provides a range of educational services through its subsidiaries, including Strayer University, Capella University, Torrens University, and others. These institutions offer undergraduate, graduate, and vocational programs both online and at physical campuses. The company also provides workforce development solutions through its Workforce Edge platform, helping employers manage education benefits for their employees. Strategic Education aims to provide accessible and relevant education to students and professionals seeking to advance their careers.
What do analysts say about STRA stock?
Analyst consensus on Strategic Education, Inc. (STRA) stock reflects a mixed outlook, with some analysts highlighting the company's growth potential in the online education market and its strong relationships with employers. Key valuation metrics such as the P/E ratio and dividend yield are closely monitored. Growth considerations include the company's ability to expand its online program offerings, acquire complementary businesses, and manage regulatory risks. Investors should conduct their own research and consider their individual investment objectives before making any decisions.
What are the main risks for STRA?
Strategic Education, Inc. faces several risks, including increased competition in the online education market, which could lead to pricing pressure and reduced enrollment. Changes in government funding for higher education could also negatively impact revenue. Economic downturns could affect student enrollment and tuition revenue. Cybersecurity threats and data breaches pose a risk to the company's reputation and operations. Regulatory scrutiny of online education programs could lead to increased compliance costs. These risks could impact the company's financial performance and stock price.
How does Strategic Education, Inc. adapt to changing consumer preferences?
Strategic Education, Inc. adapts to changing consumer preferences by continuously innovating its program offerings and delivery methods. The company invests in technology to enhance its online learning platforms and create more engaging and interactive learning experiences. It also develops new programs in high-demand fields such as data science, artificial intelligence, and cybersecurity to align with the needs of the job market. Strategic Education also monitors consumer trends and feedback to identify opportunities for improvement and innovation.
What is STRA's dividend and shareholder return track record?
Strategic Education, Inc. has a history of providing shareholder returns through dividends. The company's dividend yield of 2.99% provides a steady income stream for investors. Strategic Education has also engaged in share buyback programs to return capital to shareholders and increase the value of the stock. The company's dividend growth history and payout ratio are closely monitored by investors as indicators of its financial health and commitment to shareholder returns.
What are the key factors to evaluate for STRA?
Strategic Education, Inc. (STRA) holds an AI score of 84/100 (high). P/E: 12.7x vs the S&P 500's ~20-25x. Analysts target $87.00 (+6%). Not financial advice.
How frequently does STRA data refresh on this page?
STRA prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven STRA's recent stock price performance?
Strategic Education, Inc. (STRA) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diverse portfolio of educational institutions and programs. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and should not be considered investment advice.
- Investors should conduct their own research and consult with a financial advisor before making any investment decisions.