PRDO - Perdoceo Education: Value Proposition With Additional Capital Unlock

2024-07-03 09:04:18 ET

Summary

• PRDO is a consumer discretionary sector business with low embedded expectations relative to its fundamental prospects.
• The company operates in the postsecondary education sector, offering online education and showing strong student retention and engagement.
• PRDO is attractively valued in my view with potential catalysts for price change including operating leverage and its capital-light operating model.

Investment summary

The hurdle for businesses in the consumer discretionary sector has been set high for FY'24. With ~10% current S&P 500 index weighting, relative to forward growth projections, investor expectations are equally as high....

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