Startup online learning company Coursera reported strong double-digit quarterly revenue growth this past year as it heads for profitability. On Monday, the IBD SmartSelect Composite Rating for Coursera stock climbed to a near-best 96, up from 94 last week.
Coursera develops online learning platforms, collaborating with 300 universities, colleges, and companies including Duke and Stanford, along with IBM and Google parent Alphabet.
The upgrade means Coursera stock tops 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Coursera Stock Get Good Grades
Mountain View, Calif.-based Coursera generally has smart ratings overall. Its Relative Strength Rating is a lofty 97 out of 99. And it boasts a B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating shows that mutual funds, ETFs and other funds are buying significantly more shares than selling. Additionally, the number of funds holding Coursera stock rose from 286 in the December-ended quarter to 333 in September.
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Coursera stock went public in 2021 in the heart of the pandemic. It hasn't reported a profit yet although its earnings have improved every quarter this past year despite the end of the stay-home mandates of the pandemic.
One weak spot is the company's 66 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better, as it moves toward profitability, to show it's in the top 20% of all stocks.
Last quarter Coursera reported a 1-cent per share loss, reversing sharply from a 14-cent loss the same quarter a year earlier. Revenue grew 23% to $153.7 million. The quarter before last it recorded a 3-cent loss, reversing from an 11-cent loss the same quarter a year earlier. Sales have grown at a 23%-to-24% clip every quarter this past year. The company's next quarterly report is expected on or around Oct. 26.
On The Rebound
Coursera stock rose to an all-time high 62.53 shortly after its April 2021 IPO. From there it slid as the pandemic waned and stay-at-homes left their computers to go outside more. It bottomed at 9.81 on Sept. 23, 2022 then turned upward. Monday afternoon, Coursera stock traded around 18, up about 0.9% for the day and nearly double its 2022 low.
Coursera stock holds the No. 2 rank among its peers in the Computer Software-Education industry group. Arco Platform is the top-ranked stock in the group. Online language learning site Duolingo is No. 3. The 19-stock group itself ranks a strong No. 37 on IBD's list of 197 industry groups.
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