GOTU Stock Analysis: Buy, Sell, or Hold?
GOTU - Gaotu Techedu Inc. American Depositary Shares, three of which representing two Class A Ordinary Shares
$1.68
0.00 (0.00%)
â˛
5d:
+0.0%
30d:
+5.0%
90d:
-7.18%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Aug 27, 2026
4d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: GOTU is fairly priced but lacks strong directional signals. At -13.6% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: GOTU is fairly priced but lacks strong directional signals. At -13.6% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$5.04
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$3.13
46.4% 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 3.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: GOTU is currently trading at $1.68, which is considered slightly low relative to its 30-day fair value range of $1.63 to $1.83. From a valuation perspective, the stock is trading at a discount (Forward PE: 2.3) compared to its historical average (3.5). Remarkably, the market is currently pricing in an annual earnings decline of 13.6% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, GOTU is in a downtrend. The price is currently testing key support at $1.63. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 40/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $3.38 (+101.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, GOTU is in a downtrend. The price is currently testing key support at $1.63. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 40/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $3.38 (+101.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$1.63 -
$1.83
Company Quality Score
42/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 101.1% below Wall St target ($3.38)
- WARNING: Composite score 42/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$1.63 -
$1.83
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$1.63
Resistance Level
$1.89
Current Trend
Downtrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
2.27
Wall Street Target
$3.38
(+101.1%)
Revenue Growth (YoY)
13.2%
Earnings Growth (YoY)
-71.2%
Profit Margin
-6.5%
Valuation Discount vs History
-13.6% cheaper
PE vs Historical
2.3 vs 3.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-13.6%
(market-implied from PE analysis)
1-Year Target
$1.51
(-10%)
2-Year Target
$1.36
(-19%)
3-Year Target
$1.22
(-27%)
3-Yr Target (if PE normalizes)
(PE: 2â4)
$1.89
(+12%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 377.4%)
$50.12
(+2884%)
Base:
(SPY PE: 2.3, Growth: 377.4%)
$5.67
(+238%)
Bear:
(PE: 1.9, Growth: 377.4%)
$4.82
(+187%)
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 2.3 to 3.5
Stabilization Target:
$2.59
(+54.2%)
PE Expansion Potential:
+54.2%
Share & Embed Analysis
Last updated: August 22, 2026 4:15 PM ET
Data refreshes hourly during market hours. Next update: 5:14 PM
Data refreshes hourly during market hours. Next update: 5:14 PM
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Technical Signals Check
Is GOTU showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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