Evaluating Perdoceo Education (PRDO) Stock: Is There Value After Broader Economic Pressures?

Perdoceo Education (PRDO) traded lower after fresh economic data signaled rising short-term inflation expectations and a more uncertain labor market. Broader recession worries and the government shutdown are weighing on education stocks this week.

See our latest analysis for Perdoceo Education.

Despite a bumpy week driven by negative economic headlines and sector-wide caution, Perdoceo Education’s momentum over the past year remains clear, with a 1-year total shareholder return of 67% and year-to-date share price gains surpassing 32%. The recent pullback hasn’t erased the market’s broader optimism, especially given the stock’s remarkable 250% total shareholder return over three years. This suggests that while short-term nerves are up, the long-term growth story is still very much in play.

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But with shares still trading at a notable discount to analyst targets and key valuation metrics looking favorable, investors must now ask whether Perdoceo is genuinely undervalued or if the market has already priced in its future growth.

Most Popular Narrative: 17.6% Undervalued

With Perdoceo Education’s narrative fair value set at $42 and the last close price at $34.62, the narrative suggests room to run as analyst expectations outpace recent market volatility.

Continued expansion of high-demand, industry-aligned programs (notably in nursing, speech language therapy, and healthcare doctorate programs) and introduction of flexible learning modalities (online, in-person, hybrid) positions the company to capture premium tuition and adapt to evolving workforce upskilling needs. This supports both revenue growth and higher net margins.

Read the complete narrative.

Want to know what fuels this premium valuation? The secret is a blend of aggressive growth assumptions and margin strength that could rival market favorites. Tempted to see the bold forecasts that make this fair value possible? Click to uncover the narrative’s full projections.

Result: Fair Value of $42 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the outlook could shift if heightened competition or regulatory uncertainty leads to slower enrollment growth or creates margin pressure in the coming quarters.

Find out about the key risks to this Perdoceo Education narrative.

Build Your Own Perdoceo Education Narrative

If you have a different perspective or want to dive deeper into the numbers, you can build a customized view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Perdoceo Education.

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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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