Stride: Time To Double Down

Danil SeredaInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryStride, Inc. remains a Buy, with stabilization near support and a strong mean reversion expected post-Q2 results.LRN's platform glitch caused enrollment losses, but double-digit student growth and robust operating leverage signal resilience and future EPS expansion.Street models sub-8% FY2027 EPS growth, but management is limiting intake to restore quality; I expect FY2027 comp benefit and upside revisions as retention returns.Valuation looks washed-out: 7.6x FY2027 P/E and ~1.6x EV/revenue, plus $500M buyback and $750M cash, support ~$91 target for ~32% upside if the platform executes cleanly.I remain bullish on LRN's dip.Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More » anyaberkut/iStock via Getty Images I Keep My Bullish Stance on LRN Stock I initiated my coverage of Stride, Inc. (LRN) stock in early November, a few days after its massive drop after its dramatic drop in priceThis article was written byDanil Sereda14.21K FollowersFollowDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of LRN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.