New Oriental Education: Optimistic About Overseas Expansion

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Pinxter Analytics
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Summary

  • On the surface, New Oriental Education has performed worse than peers with larger revenue declines and is one of the only companies to hold any long-term debt.
  • However, the way they positioned themselves after the regulatory crackdown in the People's Republic of China, they're set to outperform in the longer run.
  • As a result, and even after a 250% surge in share price, I retain my bullish stance on the company's long-term prospects.

Teen girl gestures while explaining something to female teacher

SDI Productions/E+ via Getty Images

New Oriental Education (NYSE:EDU) is an education company in the People's Republic of China which offers private tutoring services, test preparation classes and other education-related services. Back in 2020 when regulatory authorities cracked down on the

This article was written by

Pinxter Analytics profile picture
4.82K Followers
As part of my earnings growth strategy, I invest, trade and write about small under-covered growth companies which don't get much attention from establishment analysts as well as use the strategy to interpret short and long term moves in bigger, well established companies in the United States, Europe and the Asia-Pacific region.-All articles and the information in them are my opinion based on my own research and analysis and should not be taken as investment advice without proper due diligence and advice from a professional financial adviser.

Disclosure: I/we have a beneficial long position in the shares of EDU, TAL 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.

Additional disclosure: Opinion, not investment advice.

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