Perdoceo Education Corp

Perdoceo Education Corp raised its full-year 2026 adjusted operating income guidance to a range of $258 million to $263 million and adjusted EPS to $3.10 to $3.16, representing a 19.9% increase at the midpoint, following second-quarter net income of $48 million, or $0.75 per diluted share, up from $41 million, or $0.62 per share, a year earlier. Year-to-date operating income grew 14.4% and revenue increased 3%, driven by disciplined expense management and investments in academics, technology, and student support. Total student enrollments grew 0.7% year-over-year, with CTU achieving its 11th consecutive quarter of enrollment growth and the University of St. Augustine for Health Sciences seeing a 6% increase in enrollments and a near doubling of adjusted operating income to $10.7 million. The Board approved a 13.3% increase in the quarterly dividend to $0.17 per share, and the company maintains a strong balance sheet with $734.8 million in cash and investments while actively evaluating accretive acquisition opportunities, particularly in health sciences.

Zacks Investment Research identifies three for-profit education stocks—American Public Education, Lincoln Educational Services, and Perdoceo Education—as managing through regulatory and cost pressures in 2026. The Zacks Schools industry faces heightened regulatory scrutiny, funding uncertainty, and rising expenses, yet benefits from persistent healthcare and skilled-trade worker shortages driving demand for career-focused programs. American Public Education, with a Zacks Rank #1 (Strong Buy), has seen its 2026 earnings estimate revised upward to $2.59 per share and its stock surge 68.7% over the past year. Lincoln Educational Services, ranked #3 (Hold), has soared 92.1% over the past year, though its 2026 earnings are expected to decline 15.2%. Perdoceo Education, also ranked #3, has gained 9.6% over the past year and expects 19.2% earnings growth in 2026. The industry trades at a forward price-to-earnings ratio of 11.33, well below the S&P 500's 21.02, and has collectively lost 5.6% over the past year while the S&P 500 rose 22.8%.

Perdoceo Education presents a stronger value opportunity than American Public Education, according to an analysis by Zacks Investment Research. Perdoceo holds a Zacks Rank of #2 (Buy) with an improving earnings outlook, while American Public Education is ranked #3 (Hold). Perdoceo's forward P/E ratio stands at 10.69 compared to 21.57 for American Public Education, and its PEG ratio is 0.71 versus 1.44. Additionally, Perdoceo's price-to-book ratio is 2.09, lower than American Public Education's 3.36. These metrics contribute to Perdoceo earning a Value grade of A, while American Public Education receives a C.