EDU
🔥 HOT detected 2026-07-28 Fundamentals74/100Declined -74.5% from its all-time high of $195.87 — now $49.91
I bought this
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What's going on
The stock's collapse from its 2021 peak was caused by China's "double reduction" policy that banned for-profit academic tutoring for kids, which gutted EDU's core business overnight; that is old news, not what is happening today — the stock is actually sitting at its 30-day high right now, not crashing.
The case for it
New Oriental pivoted away from banned academic tutoring into non-academic tutoring, study-abroad services, and adult education, and the pivot is working: revenue grew nearly 20% and earnings beat estimates last quarter with margins expanding. It has a fortress balance sheet ($4.8B cash vs $807M debt) and trades cheap (forward P/E under 12, PEG 0.85) while growing earnings 60%. Analysts see over 40% upside from here, and the recent price action shows strength (at 30-day highs), not panic.</thesis> <parameter name="risks">Profitability is still the weakest score (10/25) — margins are thinner than pre-crackdown, and the business remains exposed to unpredictable Chinese government policy on education, plus China-based accounting/regulatory disclosure has historically been a risk area for US-listed Chinese firms; earnings on 2026-07-29 could disappoint after such a strong run.
What could go wrong
How this scored 74/100
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