Chegg: High-Growth E-Learning Leader Is A Bargain

Summary

• There has been a massive decline in Chegg’s valuation due to management’s outlook in the near term.
• However, Chegg's expansion into international markets through strategic acquisitions and organic growth makes it a rare-value play.
• The market for English instruction in non-English speaking countries is expected to exponentially boost Chegg's business.
• Moreover, secondary institutions are adapting to hybrid learning environments and offering online courses, which is ideal for Chegg's operations.
• At $29.48, there is potential for 50% upside with a target price of $44.33.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CHGG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.