Laureate Education (LAUR) Drops 6.7% After Inflation and Jobs Data Pressure Education Stocks—Has the Outlook Shifted?

• In early October 2025, Laureate Education and other education stocks came under pressure after US consumer sentiment data revealed rising short-term inflation expectations and a deteriorating jobs outlook.
• This shift in sentiment was compounded by warnings of possible recession in multiple states and concerns about the impact of a government shutdown on household incomes and demand for education services.
• We’ll explore how these growing macroeconomic concerns and negative consumer sentiment influence Laureate Education’s investment narrative and outlook.

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Laureate Education Investment Narrative Recap

Being a shareholder in Laureate Education means believing in sustained demand for private higher education in Mexico and Peru, supported by campus expansion and digital learning initiatives. The recent dip in shares, driven by short-term inflation concerns and jobs data, does little to materially affect the company's central catalyst, enrollment growth, although ongoing macroeconomic risks in its key markets remain the biggest threat to returns and free cash flow.

Ahead of the anticipated Q3 results on October 30, Laureate's recent reaffirmation of 3%-4% revenue growth guidance for fiscal 2025 provides some near-term visibility. This update is especially relevant for investors watching economic headwinds, as it speaks to management’s outlook despite recent market volatility.

On the other hand, investors should stay alert to how quickly lower-than-expected enrollment or currency swings could pressure...

Read the full narrative on Laureate Education (it's free!)

Laureate Education's narrative projects $2.0 billion revenue and $343.9 million earnings by 2028. This requires 8.4% yearly revenue growth and a $89.7 million earnings increase from $254.2 million currently.

Uncover how Laureate Education's forecasts yield a $31.00 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community have fair value estimates for Laureate Education ranging from US$17 to US$63.19 per share. While opinions on value differ widely, country-specific macroeconomic risks in Mexico and Peru remain central to the company's outlook, making it essential to consider several perspectives before forming your own view.

Explore 5 other fair value estimates on Laureate Education - why the stock might be worth 42% less than the current price!

Build Your Own Laureate Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Laureate Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Laureate Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Laureate Education's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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