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Adtalem, Sana Labs to Boost Students' Learning Experience

Zacks Equity Research

Adtalem Global Education Inc.’s ATGE unit — Becker Professional Education — announced its partnership with Sana Labs, an artificial intelligence (AI) company, to deliver a new AI-powered approach that will optimize student learning for CPA Exam.

The collaboration will deliver personalized review sessions based on spaced repetition, content similarities and knowledge-gap predictions. The sessions will be powered by the Sana AI technology.

Students taking CPA exam course will now receive the new AI-powered personalized learning experience. The collaboration of Becker’s large and diverse contents with Sana Labs’ leading AI and machine learning capabilities is expected to boost learning experiences. This will enable students of different skill gaps to unlock full potential.

Becker’s Effort to Empower Students

We believe that the Becker unit will continue to benefit from such initiatives, which will drive the company’s top line. During the first quarter of fiscal 2019, Becker launched an e-commerce platform to align academic support with better learning needs and improve overall student experience.  Strengthening of core CPA value proposition and aligning it with better student expectations has enabled Becker to further broaden its presence as the workforce solutions provider.

In first-quarter fiscal 2020, revenues in the Financial Services segment, which includes Becker, grew 32.2% year over year. The upside was backed by 0.3% and 37.4% increase in revenues at Becker and ACAMS, respectively.

Shares of Adtalem have declined 27% so far this year against the industry’s 35.6% growth. The company has been recording lower profits over the last few quarters due to certain restructuring charges related to the closing of the Ross University School of Medicine campus in Dominica as well as real estate consolidations and increased marketing-related expenses.



Nevertheless, collaborations and strategic initiatives undertaken are expected to drive growth and enable the company to regain momentum. Notably, Adtalem expects to generate revenue growth of 5-7% in the fiscal 2020.
 

Zacks Rank & Key Picks
 
Currently, Adtalem carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Career Education Corporation CECO, New Oriental Education & Technology Group Inc EDU and JAKKS Pacific, Inc JAKK, each sporting a Zack Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Career Education’s earnings surpassed estimates in all of the trailing four quarters, the average being 23.9%.

New Oriental’s current-year earnings are expected to rise approximately 32.2%.

JAKKS Pacific has three-five year expected earnings per share growth rate of 5%.

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New Oriental Education & Technology Group, Inc. (EDU) : Free Stock Analysis Report
 
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Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
 
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