Zacks Highlights Three School Stocks Navigating Education Market Headwinds

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Summary · why it matters

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%.

Impact on assets 3

Consumer Discretionary▲
American Public Education Inc
APEI
▲ PositiveDemandrelevance

Persistent healthcare and skilled-trade worker shortages drive demand for career-focused programs, benefiting American Public Education.

Perdoceo Education Corp
PRDO
▲ PositiveDemandrelevance

Worker shortages boost demand for career programs, and Perdoceo expects 19.2% earnings growth in 2026.