EDU Stock Analysis: Buy, Sell, or Hold?
EDU - New Oriental Education and Technology Group, Inc. American Depositary Shares (each representing ten (10) Common Shares)
$45.19
-0.07 (-0.15%)
▼
5d:
-3.97%
30d:
-4.98%
90d:
-17.9%
BUY
HIGH Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Jul 29, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: EDU appears deeply undervalued. Market expects -6.7% annual earnings decline despite 60% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: EDU appears deeply undervalued. Market expects -6.7% annual earnings decline despite 60% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$102.28
Based on 13.2% avg growth
INTRINSIC VALUE TODAY
$63.51
28.8% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: EDU is currently trading at $45.19, which is considered slightly low relative to its 30-day fair value range of $45.10 to $48.61. From a valuation perspective, the stock is trading at a discount (Forward PE: 10.5) compared to its historical average (12.9). Remarkably, the market is currently pricing in an annual earnings decline of 6.7% over the next few years. This pessimistic expectation contrasts with the company's recent 60.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, EDU is in a strong downtrend. The price is currently testing key support at $44.66. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $70.61 (+56.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, EDU is in a strong downtrend. The price is currently testing key support at $44.66. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $70.61 (+56.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$45.10 -
$48.61
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 56.0% below Wall St target ($70.61)
Trading Range Analysis
30-Day Trading Range
$45.10 -
$48.61
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$44.66
Resistance Level
$48.64
Current Trend
Strong Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.52
Wall Street Target
$70.61
(+56.0%)
Revenue Growth (YoY)
19.8%
Earnings Growth (YoY)
60.0%
Profit Margin
7.8%
Valuation Discount vs History
-6.7% cheaper
PE vs Historical
10.5 vs 12.9
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.7%
(market-implied from PE analysis)
1-Year Target
$42.23
(-7%)
2-Year Target
$39.40
(-13%)
3-Year Target
$36.76
(-19%)
3-Yr Target (if PE normalizes)
(PE: 11→13)
$45.06
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 22.4%)
$171.76
(+280%)
Base:
(SPY PE: 10.5, Growth: 22.4%)
$82.99
(+83%)
Bear:
(PE: 8.9, Growth: 22.4%)
$70.54
(+56%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 16.67 | Current EPS (TTM): $2.70
Bull Case
$78.89
(+74%)
Analyst growth 59.3%, PE expands to 18.3
Base Case
$71.71
(+58%)
Market implied 59.3%, PE stable at 16.7
Bear Case
$30.61
(-32%)
Severe decline -20.0%, PE contracts to 14.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 10.5 to 12.9
Stabilization Target:
$55.48
(+22.6%)
PE Expansion Potential:
+22.6%
Share & Embed Analysis
Last updated: June 23, 2026 1:01 PM ET
Data refreshes hourly during market hours. Next update: 2:01 PM
Data refreshes hourly during market hours. Next update: 2:01 PM
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Technical Signals Check
Is EDU showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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