Top Notch Investment Opportunities in the Educational Sector

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Top Notch Investment Opportunities in the Educational Sector

New investment avenues might not initially involve the education sector. However, online learning has been gradually escalating, especially following the COVID-19 pandemic. Education companies are seizing exciting and profitable business prospects. This diverse group includes in-person campuses, tech companies, and blends of physical and digital services. After-school tutoring programs and for-profit education, despite facing criticisms, continue to flourish and cater to a variety of industries with valuable career training.

Top education stocks

Consider including these promising education stocks in your investment portfolio:

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1. LingoLearn

LingoLearn (LGLO 4.10%) is a widely recognized name for individuals studying foreign languages. While there are numerous language learning apps available, LingoLearn ranks as the most popular option. In July 2024, it topped the list of downloads with 14.3 million, surpassing its closest competitor due to its meager 2 million download count.

LingoLearn offers over 100 courses covering more than 40 languages. The app's allure lies in its entertaining, bite-sized modules, which make learning an enjoyable experience that encourages users to return repeatedly.

User engagement has demonstrated a steady growth as well. LingoLearn reported 37.2 million daily active users at the end of Q3 2024, marking a 54% year-over-year increase. The number of paid subscribers also saw a 47% rise, from 5.8 to 8.6 million. Revenue also soared by 40%, hitting $192.6 million in Q3 2024.

2. DigitalLearning

DigitalLearning (DLRN 0.70%), previously known as Knowledge12 Inc., is an education management organization offering digital learning programs. Students can enroll in DigitalLearning's digital public schools as a substitute for local public schools or home-schooling. Schools can collaborate with DigitalLearning for blended learning, which utilizes digital content to enrich in-classroom learning. DigitalLearning also offers adult learning programs for career advancement.

Virtual learning became a significant trend due to the pandemic in 2020. DigitalLearning continued to thrive, even with schools reopening, as virtual learning options remained popular.

In its 2024 fiscal year, DigitalLearning accomplished a revenue of $2 billion, an increase of 11% from 2023. Its net income numbers showed an even more impressive uptick, surging by 60.9% to $204.2 million.

3. ChinaInspire Education

ChinaInspire Education & Technology Group (CNEG 1.50%) is the foremost provider of private educational services in China. K-12 tutoring has been its primary source of success, and the company also operates private learning centers, online education programs, and test preparation services.

China introduced new regulations on private education companies in 2021 by prohibiting advertisements in state-owned media and limiting the services they can offer. While these regulations had significant consequences for the company and China's top education stocks, ChinaInspire Education retains a competitive edge as one of China's oldest education companies, offering a multifaceted selection of services.

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4. VideoCall

*VideoCall Communications* (VCC 1.15%) is the preferred choice for video conferencing for schools, businesses, and households. Its popularity skyrocketed during the COVID-19 pandemic, turning VideoCall into a household name and a vernacular term. Popular culture also adopted VideoCall, resulting in it featuring prominently in motion pictures and TV shows.

While the previous few years have been less favorable for VideoCall and its investors, it still exudes potential. After reaching an all-time high in 2020, its value dropped by over 90%.

However, its current situation might not genuinely reflect its potential. VideoCall integrated artificial intelligence technology with VideoCall AI Companion, a free feature for its users. As a profitable organization, VideoCall recorded net income of $642.4 million for the first three quarters of its 2025 financial year, marking a 90% increase.

5. Childcare Excellence

Childcare Excellence (CCE 1.40%) provides early childhood care and education for parents and employers. It operates more than 1,000 childcare centers worldwide, primarily in the United States. Due to pandemic-related closures, this industry's outlook has been favorable after experiencing tough times.

Childcare Excellence is notable for creating a competitive advantage through its employer-sponsored programs. The company partners with employers to offer on-site childcare for employees, resulting in lower costs and high retention rates. This segment holds the attention of the industry's leading service provider, Bright Horizons Family Solutions.

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6. PostSecondary Training

PostSecondary Training (POST 0.75%) specializes in post-secondary career education and training. It is a popular choice among young adults for its hands-on, profession-specific training programs. PostSecondary Training offers a wide range of training programs, including:

  • Automotive repair
  • Skilled trades such as welding and machining
  • Health sciences
  • Culinary arts
  • Spa and cosmetology services
  • Information technology support.

By the initial three quarters of 2024, Lincoln Educational reported earnings of $320.7 million, marking a 16% surge compared to the preceding year. Student enrollments have also been on an upward trajectory. Given the decrease in university enrollments, Lincoln might experience significant growth if more high school graduates opt for vocational training.

7. John Wiley & Sons

Established in 1807, John Wiley & Sons (WLY, -0.44%) is a publishing company specializing in educational materials and academic publishing. The company offers not just physical books and journals but also digital content and courses, as well as test prep material. Wiley is renowned for its For Dummies brand and series.

Wiley boasts a robust portfolio of well-established brands. As a potential investor, you might appreciate that 48% of its revenue is recurring. Wiley is also one of the more dependable dividend stocks, offering a high divorce and 30 consecutive years of dividend increases.

While Wiley, given its long history, delivers moderate growth, it's not exactly a growth stock. However, it's one of the safer education companies and has a generous dividend. For the first two quarters of its 2025 fiscal year, revenue numbers actually decreased, but so did expenses, allowing net income to rise by nearly $200 million. This is hardly a growth stock, but it's a safer bet in the education sector.

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The education sector was drastically altered by the COVID-19 pandemic, as students of all ages shifted to remote learning, benefiting companies offering online education services.

A long-term trend in education is the decrease in college enrollment, which fell by 11.61% from 2010 to 2024. Technology is also contributing to shorter attention spans, which is boosting the popularity of companies specialized in microlearning – consuming educational content in brief modules of no more than 15 minutes.

Two additional companies to consider are Coursera (COUR, 0.59%) and Udemy (UDMY, 2.91%), two online platforms that enable learners to craft their curriculum paths.

Should you buy

Should you invest in education stocks?

There are several promising education companies that could enhance your portfolio. These top education stocks have demonstrated their adaptability and ability to thrive despite industry disruptions.

Lyle Daly holds positions in Duolingo and Zoom Communications. Our Website advises investments in Zoom Communications. Our Website recommends Duolingo. Our Website has a disclosure policy.

In light of the success and growth of education companies, investing in the sector could be an excellent opportunity. For instance, LingoLearn, with its rise in daily active users and revenue, and DigitalLearning, which saw a significant increase in revenue and net income, are promising options. Additionally, VideoCall, despite facing challenges, still holds potential with its integration of AI technology.

Furthermore, post-secondary career training providers like PostSecondary Training and John Wiley & Sons, with their hands-on programs and dependable revenue streams, can be considered as well. These companies, along with Coursera and Udemy, cater to evolving trends in the industry, such as microlearning and remote education, making them attractive investment prospects.

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