EDU Stock Analysis: Buy, Sell, or Hold?
EDU - New Oriental Education and Technology Group, Inc. American Depositary Shares (each representing ten (10) Common Shares)
$45.04
-0.22 (-0.49%)
▼
5d:
-4.29%
30d:
-5.3%
90d:
-18.17%
BUY
HIGH Confidence
Analysis Updated: Jun 23, 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 -6.8% annual earnings decline despite 60% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: EDU appears deeply undervalued. Market expects -6.8% 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
29.1% 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 $45.04, which is considered oversold relative to its 30-day fair value range of $45.09 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 6.8% 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 (+56.8%). 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 (+56.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$45.09 -
$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 56.8% below Wall St target ($70.61)
Trading Range Analysis
30-Day Trading Range
$45.09 -
$48.61
Current vs Trading Range
OVERSOLD
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.)
10.47
Wall Street Target
$70.61
(+56.8%)
Revenue Growth (YoY)
19.8%
Earnings Growth (YoY)
60.0%
Profit Margin
7.8%
Valuation Discount vs History
-6.8% cheaper
PE vs Historical
10.5 vs 12.9
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.8%
(market-implied from PE analysis)
1-Year Target
$41.98
(-7%)
2-Year Target
$39.12
(-13%)
3-Year Target
$36.46
(-19%)
3-Yr Target (if PE normalizes)
(PE: 10→13)
$44.92
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 22.4%)
$171.76
(+281%)
Base:
(SPY PE: 10.5, Growth: 22.4%)
$82.59
(+83%)
Bear:
(PE: 8.9, Growth: 22.4%)
$70.20
(+56%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 16.76 | Current EPS (TTM): $2.70
Bull Case
$79.31
(+76%)
Analyst growth 59.3%, PE expands to 18.4
Base Case
$72.10
(+60%)
Market implied 59.3%, PE stable at 16.8
Bear Case
$30.78
(-32%)
Severe decline -20.0%, PE contracts to 14.3
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
(+23.2%)
PE Expansion Potential:
+23.2%
Share & Embed Analysis
Last updated: June 23, 2026 11:40 PM ET
Data refreshes hourly during market hours. Next update: 12:40 AM
Data refreshes hourly during market hours. Next update: 12:40 AM
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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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