(EDU) New Oriental Education - Ratings and Ratios

New Oriental Education & Technology Group Inc. is a leading provider of private educational services in China, operating under the New Oriental brand. The company has a diversified business model, with four main segments: Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Educational Materials and Distribution. This diversification enables the company to cater to a wide range of students needs, from test preparation and academic tutoring to online education and overseas study consulting.

The companys test preparation courses are designed for students taking language and entrance exams for educational institutions in the US, Commonwealth countries, and China. Additionally, New Oriental offers non-academic tutoring courses, intelligent learning systems, and devices to provide a digital learning experience. The companys online education services are delivered through the Koolearn.com platform, which provides students with flexible and accessible learning options. New Oriental also develops and edits educational materials for language training and test preparation, further solidifying its position in the education sector.

With a presence in China and a focus on serving the growing demand for private education, New Oriental has established a strong network of schools, learning centers, and bookstores. The companys online learning platforms also enable it to reach a wider audience, providing students with a range of educational programs, services, and products. Founded in 1993 and headquartered in Beijing, New Oriental has a long history of delivering high-quality educational services to students in China.

Analyzing the and , we can observe that the stock has been trending downwards, with the current price at $46.87, below its 20-day SMA of $47.70. The 50-day SMA is $46.76, indicating a potential support level. The 200-day SMA is $56.09, suggesting a long-term downtrend. The ATR is 1.47, representing a 3.13% daily price movement. Considering the , the companys market capitalization is $7.5 billion, with a P/E ratio of 19.96 and a forward P/E of 12.33. The RoE is 10.35%, indicating a relatively stable return on equity. Based on these indicators, we forecast that the stock may experience a short-term bounce, potentially reaching $48.50, driven by the support level at $46.76. However, the long-term downtrend may continue, and investors should be cautious of the potential risks.

To capitalize on the potential short-term bounce, investors could consider buying the stock at the current price, with a stop-loss at $45.50. Alternatively, a more conservative approach would be to wait for the stock to break above the 20-day SMA, confirming a potential trend reversal. In the long term, the companys diversified business model, strong brand presence, and growing demand for private education in China may drive the stock price higher, potentially reaching $60.00. However, this would require a sustained improvement in the companys financial performance and a reversal of the current downtrend.