Coursera, Chegg, & Houghton: 3 Education Stocks To Explore

Summary

  • Coursera’s Q1 revenues jumped 64% to US$88.4 million, compared to the same period a year ago.
  • Chegg’s net revenues were up 51% YoY to US$198.4 million in the first quarter of 2021.
  • Houghton stock surged 32% in the last 30 days; to present its Q1 earnings report on May 6.

Online education has seen the growing popularity of late as students skip conventional classroom studies to avoid the risk of getting sick from coronavirus. It is believed that online education would become a critical part of institutional learning even as the regular classes resume in schools and colleges.

Hence, companies providing online classes may soon become a key contributor to economic growth. Moreover, given the magnitude of the pandemic and the increased acceptance for online courses across geographies, digital learning may be relevant for many more years to come.

As such, the following three consumer defensive stocks - Coursera Inc. (NYSE:COUR), Chegg, Inc. (NYSE:CHGG), & Houghton Mifflin Harcourt Company (NASDAQ:HMHC) may be worth exploring.

Pic Credit: Pixabay.

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Coursera Inc.

This California-headquartered company is one of the leading providers of online courses. It has tied up with many reputed colleges and universities around the world for online learning. Its global platform combines content, data, and technology to provide the best learning experience.

The company went public in March this year. The stock was trading at US$41.945 at 12:16 pm ET on Wednesday, May 5. Although the stock has shed around 18% in the last 30 days, its first-quarter revenues jumped 64% to US$88.4 million from US$53.8 million in the same period a year ago. Its gross profit was up 71% to US$49.5 million in the period, compared to US$28.9 million a year ago.

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Chegg, Inc.

Chegg Inc is based in Santa Clara, California. The company offers various online educational services such as tutoring, course assistance, and textbook rentals to high school and college-level students. Chegg has a collection of 25,000 textbook titles, which it rents to students at nominal rates.


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The company has recently appointed Lauren Glotzer, a former top executive of Sony Pictures, as the chief strategy officer to lead its team. Chegg has recently teamed up with Arizona State University to offer courses in data science and website and software development.

The stock was trading at US$86.88 at 12:12 pm ET on Wednesday, May 5, down 4.45% from the previous close. In Q1 of 2021, its net revenues increased by 51% to US$198.4 million YoY. Chegg’s total subscribers rose 64% year-over-year to 4.8 million. It generates most of its revenues from products and services like Chegg Study, Chegg Study Pack, and Thinkful.

Pi Credit: Pixabay.

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Houghton Mifflin Harcourt Company

This Boston, Massachusetts-headquartered company is another major online course provider. Besides providing various courses for students, it empowers educators through training. Its business is divided into two groups: Education and HMH Books & Media.

Houghton has partnered with Jasper County School District to improve student performance through various educational programs using technology.

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Houghton provides educational services to over 90% of the country’s K-12 classrooms, it said in a release in April.

The stock was trading at US$9.495 at 1:12 pm ET on Wednesday, May 5, which was an increase of 3.21% from the previous close. The stock gained 32% in the last 30 days.

Houghton is expected to announce its first-quarter earnings results on Thursday, May 6, 2021.


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