Possible head and shoulders pattern forming on Laureate Education
Laureate Education (Nasdaq: LAUR) is a for-profit education company with a focus on countries outside the United States. The company operates through five segments—Brazil, Mexico, Andean, Rest of World, and Online & Partnerships. The company is headquartered domestically in Baltimore, but focuses on building its education business outside the U.S.
The company hasn't been performing very well lately both in terms of fundamental and price performance. The company lost money in the third quarter when it was supposed to make money and that was with EPS growth of 28%. Analysts expect the company to make money again in the fourth quarter, but lose money again in the first quarter.
Sales have declined by an average of 8% per year over the last three years and they were down by 1% in the third quarter.
Because the company has been losing money, the return on equity is -0.24%. The profit margin is at 3.8% and both of these figures are well below average.
When we add up the declining sales and the below average management efficiency measurements, we get a poor SMR rating from Tickeron. Laureate's rating is a 94 and that indicates 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 best score a company can get is 1 and the worst score is 100.
As low as the SMR rating is, the Profit vs. Risk Rating is even worse at 100. This indicates that the returns do not compensate for the risks. Laureate’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 for the industry is 77, placing this stock worse than average.
The one area where Laureate ranks above average is the PE Growth Rating. The company scores a 5 on this rating scale and that indicates 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. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.
Looking at the daily chart for Laureate, it looks like the stock could be forming a head and shoulders pattern. The left shoulder was formed at the $17 level in June, the left side of the neck was formed at $15 in late June, and the head comes from the $18.50 high in September. The right side of the neck is down near the $15 area in October, and now the right shoulder could be forming at $17. If this is accurate, the stock will drop back down to $15 and then break lower.
Turning our attention to the sentiment toward Laureate, it doesn't have a great deal of analysts following it. There are only eight analysts covering the stock with seven "buy" ratings and one "hold" rating. This puts the buy percentage at 87.5% which is higher than the average stock. Of course it loses some of its importance because there is so little coverage.
The short interest ratio is higher than average at 4.62. The ratio had been holding in the 1.0 to 2.0 range for several months, but it jumped from 1.61 to 2.64 to 4.62 in the last three reporting periods. The jump has been caused by an increase in the number of shares sold short and a decline in the average daily trading volume.
EDUC in +43.02% Uptrend, advancing for three consecutive days on September 17, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where EDUC advanced for three days, in of 194 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 28, 2025. You may want to consider a long position or call options on EDUC as a result. In of 103 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EDUC just turned positive on August 28, 2025. Looking at past instances where EDUC's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
EDUC moved above its 50-day moving average on September 15, 2025 date and that indicates a change from a downward trend to an upward trend.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EDUC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EDUC broke above its upper Bollinger Band on September 15, 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (0.393) is normal, around the industry mean (3.224). P/E Ratio (76.067) is within average values for comparable stocks, (55.924). EDUC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (0.487) is also within normal values, averaging (1.475).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EDUC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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 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. EDUC’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 67, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a publisher of children's books and educational books
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