Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Professional & Business Education industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Professional & Business Education Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Professional & Business Education Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Professional & Business Education industry for Friday, September 20, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Professional & Business Education industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Jianzhi Education Tclgy Grp Co Ltd - ADR’s Value Grade

Value Grade:

Jianzhi Education Technology Group Co Ltd is a China-based company principally providing educational content for professional training. The Company operates two business segments. Educational Content Service and Other Services segment offers products and services under two primary business models, including business to business to customer (B2B2C) model and business to customer (B2C) model. The Company sells subscriptions to proprietary online learning platforms, higher education institutions and other academic institutions. It also cooperates other third-party platforms, allowing individual customers to subscribe for monthly access to its content. Information technology (IT) Related Solution Services segment is mainly engaged in the design and development of customized IT system, procurement and assembling of equipment, and provision of technological support and maintenance.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Jianzhi Education Tclgy Grp Co Ltd - ADR has a Value Score of 96, which is considered to be undervalued.

When you look at Jianzhi Education Tclgy Grp Co Ltd - ADR’s price-to-sales ratio at 0.09 compared to the industry median at 0.22, this company has a lower price relative to revenue compared to its peers. This could make Jianzhi Education Tclgy Grp Co Ltd - ADR’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Jianzhi Education Tclgy Grp Co Ltd - ADR’s shareholder yield is higher than its industry median ratio of (1.72%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

Lastly, let’s take a look at Jianzhi Education Tclgy Grp Co Ltd - ADR’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Jianzhi Education Tclgy Grp Co Ltd - ADR’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.96. This could make Jianzhi Education Tclgy Grp Co Ltd - ADR more attractive because the lower P/FCF ratio indicates that Jianzhi Education Tclgy Grp Co Ltd - ADR is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Skillsoft Corp’s Value Grade

Value Grade:

Skillsoft Corp. offers a platform for transformative learning experiences. It operates through two segments: Content & Platform and Instructor-Led Training. The Content & Platform business engages in the sale, marketing and delivery of its content learning solutions, in areas such as Leadership and Business, Technology and Developer and Compliance. In addition, Content & Platform offers Percipio, an online learning platform that delivers learning experience through SaaS solutions. The Instructor-Led Training business offers training solutions covering information technology and business skills for corporations and their employees. Instructor-Led Training guides its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor-certified, and other offerings. Instructor-Led Training offers a range of training topics and delivery modalities both on a transactional and subscription basis.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Skillsoft Corp has a Value Score of 63, which is considered to be undervalued.

Skillsoft Corp’s price-to-book ratio is higher than its peers. This could make Skillsoft Corp less attractive for value investors when compared to the industry median at 1.45.

You can read more about Skillsoft Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Zhongchao Inc’s Value Grade

Value Grade:

ZHONGCHAO INC. is a provider of healthcare information, education, and training services to healthcare professionals and the public in China. Under the MDMOOC brand, the Company offers a wide range of online and onsite health information services, healthcare education programs, and healthcare training products, consisting primarily of clinical practice training, open classes of medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content to healthcare professionals as well as the public.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Zhongchao Inc has a Value Score of 88, which is considered to be undervalued.

Zhongchao Inc’s price-to-book ratio is higher than its peers. This could make Zhongchao Inc less attractive for value investors when compared to the industry median at 1.45.

You can read more about Zhongchao Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Professional & Business Education Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Professional & Business Education stocks as well as other industrys.

Choosing Which of the 3 Best Professional & Business Education Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Jianzhi Education Tclgy Grp Co Ltd - ADR stock has a Value Grade of A.
• Skillsoft Corp stock has a Value Grade of B.
• Zhongchao Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Professional & Business Education industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Professional & Business Education Stocks

Want to learn more about Professional & Business Education stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Professional & Business Education Stocks for Friday, September 20
• Is YXT.Com Group Holding Ltd - ADR (YXT) Stock a Good Investment?
• 3 Undervalued Professional & Business Education Stocks for Wednesday, August 28
• 3 Undervalued Professional & Business Education Stocks for Monday, August 26

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.