Unemployment Spike Can Lead to Sustained Rally for Lincoln Educational Services

June 3, 2023

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The recent national unemployment spike has presented an opportunity for Lincoln Educational Services ($NASDAQ:LINC) (LES) to capitalize on a sustained rally in their stock. According to LES, the current economic climate has meant that an increase in unemployment could lead to a sustained rally in their stock. This is due to the fact that a higher unemployment rate often means an increased demand for educational services and training, which are among the offerings of LES. LES is a leading provider of career-oriented post-secondary education. Their programs are designed to prepare students for their chosen career paths, and they have become a leader in the career training industry.

Additionally, they offer online courses and have established partnerships with organizations that provide assistance to students to help them achieve their goals. In recent years, LES has seen a surge in demand for their services, and with the current economic uncertainty, this trend is likely to continue. As such, they have positioned themselves to capitalize on the current economic climate by offering quality education and training at competitive prices. This allows LES to remain competitive in the marketplace while also providing an opportunity to benefit from the current unemployment spike. By leveraging their position as a leader in providing career-oriented post-secondary education, LES stands to benefit from the increasing demand for their services. With educational and training programs specifically tailored towards helping people achieve their goals, LES could be in an excellent position to capitalize on the current economic climate and experience a sustained rally in their stock.

Price History

The recent surge of unemployment in the US has opened up new opportunities for Lincoln Educational Services. On Friday, the stock opened at $6.5 and closed at $6.9, which represents a 6.3% increase from the prior closing price. This significant jump in stock value reflects investors’ confidence in the potential for LINCOLN EDUCATIONAL SERVICES to capitalize on the current market trends. The company offers a variety of educational services, including career training, continuing education, and degree programs. Given the current economic climate, more people may be seeking these types of services to either gain new skills or further their education.

The company is also well positioned to capitalize on government initiatives to help those affected by the recession. Overall, LINCOLN EDUCATIONAL SERVICES is likely to benefit from the current employment crisis, as people turn to education and training as a way to improve their job prospects. With its strong presence in the educational services industry, LINCOLN EDUCATIONAL SERVICES is well positioned to take advantage of this opportunity and potentially realize a sustained rally in its stock price in the coming months. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for LINC. More…

    Total Revenues Net Income Net Margin
    353.02 9.14 3.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for LINC. More…

    Operations Investing Financing
    15.04 -23.56 -12.59
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for LINC. More…

    Total Assets Total Liabilities Book Value Per Share
    281.09 145.84 4.29
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for LINC are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    8.0% 25.9% 4.6%
    FCF Margin ROE ROA
    1.1% 7.3% 3.6%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    GoodWhale has analyzed LINCOLN EDUCATIONAL SERVICES’s financials with our platform and has classified the company as a ‘rhino’, indicating that it has achieved moderate revenue or earnings growth. We can see from the Star Chart that LINCOLN EDUCATIONAL SERVICES is strong in profitability, medium in asset, growth and weak in dividend. Additionally, LINCOLN EDUCATIONAL SERVICES has an intermediate health score of 6/10 considering its cashflows and debt, meaning that it might be able to safely ride out any crisis without the risk of bankruptcy. Given its relatively healthy balance sheet and moderate growth rate, investors who want to invest in LINCOLN EDUCATIONAL SERVICES are likely to be long-term value investors. They are looking for a safe opportunity to put their capital to work and receive steady returns over time. They will likely have a portfolio of similarly situated companies and are looking for stable, long-term investments with limited downside risk. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    In the world of for-profit education, there is intense competition between the major players. Lincoln Educational Services Corp is one of the leading companies in this industry, and its competitors include National American University Holdings Inc, Adtalem Global Education Inc, and Graham Holdings Co. All of these companies are striving to provide the best education possible to their students, and they are constantly innovating and expanding in order to stay ahead of the competition.

    – National American University Holdings Inc ($OTCPK:NAUH)

    National American University Holdings Inc is a for-profit education company. It offers undergraduate and graduate degree programs in business, healthcare and information technology. The company has a market cap of 2.12M as of 2022 and a Return on Equity of -51.55%.

    The company has been facing financial difficulties in recent years, which has led to its market cap and ROE declining. Despite this, the company remains committed to providing quality education to its students.

    – Adtalem Global Education Inc ($NYSE:ATGE)

    Adtalem Global Education Inc is a provider of educational services. The company operates through four segments: Medical and Healthcare, Professional Education, Technology and Business, and Graduate and Undergraduate Education. The Medical and Healthcare segment provides educational programs and services to students pursuing careers in the healthcare field. The Professional Education segment offers educational programs and services for students pursuing careers in the legal, business, and accounting fields. The Technology and Business segment provides educational programs and services for students pursuing careers in the information technology and business fields. The Graduate and Undergraduate Education segment offers educational programs and services for students pursuing undergraduate and graduate degrees.

    Adtalem Global Education Inc has a market cap of 1.69B as of 2022. The company has a Return on Equity of 2.45%.

    – Graham Holdings Co ($NYSE:GHC)

    The Washington Post Company is an American media company, headquartered in Washington, D.C. The Post Company owns a variety of media businesses, including the Washington Post newspaper, Slate magazine, and Kaplan, Inc. The Post Company’s media properties reach a wide audience, with over 70 million unique visitors to its various websites each month.

    The company has a market capitalization of $2.79 billion and a return on equity of 3.23%. The Washington Post Company’s media businesses provide it with a wide reach and a large audience. The company’s focus on quality journalism and its commitment to serving the public interest make it an important voice in the media landscape.

    Summary

    Lincoln Educational Services Corporation is a postsecondary education provider that has seen its stock price move up the same day as an increase in unemployment. This is due to the company’s reliance on demand for postsecondary education, which often sees an increase when there is more unemployment. Because of this, investors view the unemployment spike as a positive sign for the long-term prospects of Lincoln Educational Services.

    In addition, the company is well-positioned to benefit from current economic conditions as demand for their services is likely to continue. As such, investors should consider carefully the potential long-term prospects of Lincoln Educational Services Corporation when considering whether to invest.

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