(EDU) New Oriental Education - Ratings and Ratios

New Oriental Education & Technology Group Inc. (NYSE:EDU) is a leading provider of private educational services in the Peoples Republic of China, operating under the renowned New Oriental brand. Established in 1993 by Michael Yu, the company has grown into one of Chinas largest education providers, offering a diverse range of services across four primary segments: Educational Services and Test Preparation Courses; Online Education and Other Services; Overseas Study Consulting Services; and Educational Materials and Distribution. Its services include test preparation for language and entrance exams such as TOEFL, IELTS, SAT, and the Chinese gaokao, as well as non-academic tutoring courses. The company also develops intelligent learning systems and devices to enhance digital learning experiences and provides overseas study consulting services. Additionally, New Oriental operates the Koolearn.com platform for online education and develops educational materials for language training and test preparation. Its offerings are delivered through a network of schools, learning centers, and bookstores, as well as online platforms.

Headquartered in Beijing, New Oriental has played a pivotal role in shaping Chinas private education sector. The company has expanded its reach beyond traditional test preparation to include lifelong learning programs, vocational training, and early childhood education. Its strategic focus on technology integration has enabled it to adapt to the evolving education landscape, particularly during the COVID-19 pandemic, when demand for online learning surged. New Oriental has also been at the forefront of Chinas Double Reduction policy, diversifying its offerings to comply with regulatory changes while maintaining its market leadership.

3-Month Forecast: Based on the provided data, New Orientals stock is expected to face headwinds in the near term. The stock is trading below its 50-day and 200-day moving averages, indicating bearish momentum. The 20-day SMA of 45.07 suggests potential resistance at current levels, with the 50-day SMA of 47.92 acting as a key barrier. The ATR of 2.27 signals moderate volatility, with potential price swings of 4-6% in either direction. On the fundamental side, the forward P/E of 12.45 suggests investor expectations of improved earnings, but the current P/E of 19.33 reflects elevated valuations. The P/B ratio of 1.98 indicates the stock is fairly valued relative to book value, while the P/S ratio of 1.55 points to moderate revenue multiples. With a RoE of 14.86%, the company maintains strong profitability. Overall, the stock is likely to remain range-bound between 42 and 50, with upside limited by technical resistance and downside supported by improving fundamentals.