The World Health Organization (WHO) declared the new coronavirus a “pandemic” at a press conference in Geneva on March 11. The virus has so far spread to 127 countries, infecting more than 135,000 people and causing nearly 4,990 deaths worldwide.
As the spread continues, governments are quarantining affected areas and closing schools, colleges and businesses. In fact, Google has asked nearly 100,000 employees in 11 offices across the United States and Canada to work from home. Widespread panic is causing people to hoard food, water and essentials.
This week schools in Ohio, Maryland, Michigan and the districts of Seattle and San Francisco closed all K-12 schools to help prevent the spread of the coronavirus. Schools have been closed in Japan, South Korea, Europe, Canada and some states in India as well.
Although closing schools will prevent the spread of infection, the fact that schools are likely to remain closed indefinitely raises concerns about the education of millions of children. This is where online education can be a game changer.
Online training to get a boost
According to Education Week magazine, as of March 12, nearly 10,600 schools have been closed or are expected to close, affecting nearly 4.9 million students across the United States. Additionally, the UNESCO report projects that the coronavirus pandemic will impact the education of more than 290 million students in 13 countries.
This pandemic has led many people to stay at home, which presents a solid growth opportunity for online education. Students can continue learning with various video lectures, webinars, animations, reading materials and also opt for online tests.
Additionally, on March 9, the U.S. Immigration and Customs Enforcement Student and Exchange Visitor Program (SEVP) issued a new directive, which removed the restriction on the number of online courses that international students can follow.
5 stocks to watch
Given the current scenario, it is prudent to keep a close eye on these five online training providers that are about to expand.
Arco Platform Limited ARCE is a Zacks Rank #1 (Strong Buy) company that provides an educational system with technology features to deliver educational content to private schools, students, teachers, administrators and parents. The company’s expected earnings growth rate for next year is over 100%. You can see the full list of today’s Zacks #1 Rank stocks here.
Instructure, Inc. INST provides applications for learning, assessment, and performance management through a software-as-a-service business model. The expected earnings growth rate for the next quarter is 12.5%.
Perdoceo Education Corporation PRDO provides training to students in a variety of career-focused disciplines through online, on-campus, and blended learning programs. The company’s expected profit growth rate for the current year is 5.8%. The company carries a Zacks Rank #3 (Hold).
then, we haveChegg, Inc. CHGG, which operates a direct-to-student learning platform. It also allows students to find human help on its learning platform through a network of live tutors. The expected earnings growth rate for the current quarter is 26.7%.
New Oriental Education and Technology Group Inc. EDU offers online education programs that include college, K-12, and preschool education. The company’s expected earnings growth rate for the current quarter is 13%. New Oriental Education & Technology Group wears a No. 3 Zacks rank.
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