Online education company Chegg found support at its 104-week moving average
Chegg Inc. (NYSE: CHGG) is an online education company that operates a learning platform designed to help students pass tests, classes, and save money on required materials. Chegg Services offers students required materials such as print textbooks as well as eTextbooks. The company also offers Chegg Study which helps students master difficult concepts, Chegg Writing to help students format and cite sources in written work, and Chegg Tutors which allows students to reach out for human help. The company is headquartered in Santa Clara, California and was founded in 2003.
The company has performed very well in the last few years with earnings growing by 122% per year over the last three years and they were up 92% in the second quarter. The company is scheduled to release third quarter earnings on October 29.
Looking at the Tickeron Fundamental Analysis Overview, Chegg has an SMR rating for of 31. This indicates very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. Chegg has an ROE of 17.2% and a profit margin of 21.9%. Sales have grown by 12% per year over the last three years and they jumped by 26% in the second quarter.
Looking at the weekly chart we see that the stock has fallen over the last three months, but that drop could be creating a buying opportunity. The 104-week moving average (two years of data) appears to have acted as support in the last few weeks and the overbought/oversold indicators dropped in to oversold territory. The indicators have turned higher in the last few weeks and that could be a bullish sign for the stock.
The Tickeron Technical Analysis Overview shows that the stock dropped below the lower Bollinger Band back on October 2. As a result, a price increase is expected as the ticker heads toward the middle band. In 21 of 28 cases where Chegg's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued uptrend are 75%.
The overview also points out that the Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where Chegg's MACD histogram became positive, in 36 of 50 cases, the price rose further within the following month. The odds of a continued uptrend are 72%.
Turning our attention to the sentiment indicators for Chegg, there are 13 analysts covering the stock right now with 10 “buy” ratings and three “hold” ratings. This puts the buy percentage at 76.9% which is slightly higher than average and suggests slightly more optimism toward the stock.
The short-interest ratio is a whopping 10.8 currently and the number of shares sold short is at 19.89 million shares. The ratio is actually down from 12.2 at the beginning of September.
Chegg has beaten its earnings estimates in each of the last eight quarters. If the company should beat estimates again this time around, the high short interest ratio could add fuel to a rally as short-sellers scramble to cover their positions. This would add buying pressure to the stock.
CHGG's RSI Oscillator recovers from overbought zone
The 10-day RSI Indicator for CHGG moved out of overbought territory on June 12, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 instances where the indicator moved out of the overbought zone. In of the 23 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 23, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CHGG as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CHGG turned negative on June 18, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 37 similar instances when the indicator turned negative. In of the 37 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHGG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CHGG broke above its upper Bollinger Band on June 06, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where CHGG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where CHGG advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 186 cases where CHGG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CHGG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.787) is normal, around the industry mean (13.761). P/E Ratio (45.125) is within average values for comparable stocks, (78.016). CHGG's Projected Growth (PEG Ratio) (0.317) is slightly lower than the industry average of (1.772). Dividend Yield (0.000) settles around the average of (0.037) among similar stocks. P/S Ratio (1.296) is also within normal values, averaging (11.971).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHGG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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General Information
an operator of learning platform for students
Industry MiscellaneousCommercialServices
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