Strategic Education

STRA

Market cap $1.85B

I have sold my shares in Strategic Education due to rising concerns over AI-driven disruption of SEO-dependent customer acquisition channels. STRA's recent outperformance in 2025, particularly in the ETS segment, makes my prior thesis of 2026 revenue acceleration less compelling. AI large language models threaten to increase customer acquisition costs, potentially pressuring margins for businesses reliant on organic and paid search.

Investors interested in Schools stocks are likely familiar with Strategic Education (STRA) and American Public Education (APEI). But which of these two companies is the best option for those looking for undervalued stocks?

Strategic Education and three other low P/CF picks stand out as U.S. stocks rally on ceasefire hopes despite higher energy prices and hawkish Fed talk.

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PagSeguro Digital, Mistras Group, Strategic Education, NatWest and PG&E emerge as low P/B picks with solid growth outlooks and strong value scores.

Strategic Education (STRA) is deeply undervalued at ~6x EBITDA, with resilient growth and margin expansion despite sector headwinds. STRA's AI-driven cost cuts, high-margin ETS segment growth (41.4% in FY 2025), and Workforce Edge funnel drive EBIT margin and future upside. Even under conservative peer multiples (11.1x EV/EBITDA), STRA offers double-digit upside, with price targets ranging from $99 to $142.55 per share.

EFXT, CPRX, GEV, STRA and BP have been added to the Zacks Rank #1 (Strong Buy) List on March 31st, 2026.

BP, CHRD and STRA made it to the Zacks Rank #1 (Strong Buy) income stocks list on March 31st, 2026.

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Herraiz sold 2,982 shares for a transaction value of ~$238,000, with sales executed at around $79.88 per share on March 18, 2026. The trade represented 5.09% of her direct holdings at the time, reducing direct ownership from 58,562 to 55,580 shares post-transaction.