New Oriental Education has regained momentum following a government crackdown on K-12 tutoring, with operating profit tripling in Q2 FY2026. The company's new education initiatives and adult training businesses are driving growth, with revenue up 14.7% and operating profit surging 244.4%. Management raised full-year revenue guidance to $5.3-5.5 billion, and HSBC upgraded the stock to 'buy' with a $68 price target.

East Buy announced plans to build same-day delivery capabilities in its top 10 cities and trial instant commerce fulfillment in Beijing, Shanghai, and Guangzhou, entering the competitive instant commerce market dominated by Alibaba, JD.com, and Meituan. The company returned to profitability in the first half of its fiscal year with revenue growth of 5.7% year-on-year, driven by its private label business which now represents 53% of GMV. Stock rallied 14% on the announcement, though analysts note valuation concerns with a P/S ratio of 5.4.

Hong Kong-based First Beijing Investment increased its stake in New Oriental Education & Technology Group (EDU) by 2.23 million shares to $496.02 million, making it the fund's third-largest holding at 19.15% of its U.S. equity portfolio. Despite EDU's 13% decline over the past year, the investor's significant bet signals conviction that the market is underpricing the company's resilience, supported by solid operational metrics including 6.1% revenue growth and improving operating margins.

Singapore-based Serenity Capital Management increased its stake in New Oriental Education & Technology Group (EDU) by $21.6 million during Q3, bringing its total position to $34.9 million and making it the fund's fifth-largest holding. The investment signals confidence in the company's turnaround after a devastating 95% crash, as the education provider has successfully rebuilt its business around adult education and overseas test prep following China's tutoring crackdown.

As digital learning replaces traditional methods, AI could potentially enhance education by creating personalized learning companions that develop critical thinking, reasoning, and imagination in students, rather than simply providing instant answers.

East Buy, formerly an online education company, pivoted to e-commerce after China's tutoring ban and is now struggling to rebuild its business model after losing its star livestreaming host, focusing on a private-label membership strategy.

New Oriental Education & Technology Group's stock surged over 13% after an analyst at J.P. Morgan upgraded the company to overweight and set a price target of $62 per share. The analyst cited the company's attractive valuation and improved prospects for fiscal 2026.

Chinese stocks rose today as the government announced a 5% GDP growth target for 2025 and detailed stimulus measures to support the economy. Futu, GDS Holdings, and New Oriental Education & Technology saw their shares rise 12%, 10%, and 6% respectively.

With the earnings season in full swing, these ten large-cap stocks were the worst performers last week. Are they in your portfolio? LKQ Corporation (NASDAQ:LKQ) stock tumbled 12.3% after the company reported a Q1 earnings miss and cut its FY24 outlook. MSCI Inc. (NYSE:MSCI) shares fell 9.8% following its mixed first-quarter results. Several analysts cut their forecasts on the stock. Textron Inc. (NYSE:TXT) shares plunged 9.5% after ...Full story available on Benzinga.com

EDU earnings call for the period ending March 31, 2024.

New Oriental (EDU) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.

Here is how American Public Education (APEI) and New Oriental Education (EDU) have performed compared to their sector so far this year.