Summary: Buying education stocks means investing in publicly traded education and technology companies. Besides boosting digital literacy and helping disseminate knowledge, these investments can potentially bring lucrative returns. This guide will present the five best education stocks to buy in 2024 using an online investing service like eToro.
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What are education stocks?
About
Apart from the philanthropic benefits of investing in advancing learning and technology, buying education stocks can be a profitable investment opportunity. The value of these stocks depends on multiple factors, including occupancy, government policies and subsidies, and technological innovation.
Top five education stocks to buy in 2024
While the value of individual stocks tends to be highly volatile and changes over time, several factors proved the worth of several candidates.
Here are the five best education stocks:
- Duolingo (NASDAQ: DUOL);
- Coursera (NYSE: COUR);
- Chegg (NYSE: CHGG);
- Pearson (LSE: PSON.L);
- Skillsoft (NYSE: SKIL).
To securely buy education stocks, we recommend the following:
1. eToro
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
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Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)
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Low commissions starting at $0 with no platform fees or account minimums
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Easily fund your account and trade assets in 26 currencies
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IBKR pays up to 4.58% interest on cash balances of $10k or more
Best Education Stocks to Buy #1: Duolingo
Duolingo, Inc. (NASDAQ: DUOL) is a leading American educational technology company that provides a gamified and interactive way to learn and practice languages to a global audience. The company produces learning apps and awards certificates for courses in music, math, and 40+ languages, from major ones, such as English and Spanish, to the less common like Swahili and Finnish.
Duolingo’s platform utilizes machine learning to personalize lessons and measure progress. It works on a freemium model, with an optional premium service that removes ads and offers more features.
As of December 2023, Duolingo is the world’s most popular language-learning app based on monthly downloads by far.
Note
DUOL stock price today
Your capital is at risk.
Best Education Stocks to Buy #2: Coursera
Coursera Inc. (NYSE: COUR) is an open online course provider and a learning platform providing a broad scope of courses and specializations in numerous subjects, including technology, business, science, and arts.
Founded in 2012, Coursera today provides universal access to high-quality learning in collaboration with top universities and organizations. The company’s goal developed into more than 4,000 courses provided in cooperation with over 300 universities and companies.
Coursera employs a flexible, self-paced learning model for 124+ million registered users. The interactive platform incorporates video lectures, assignments, quizzes, and peer interaction. Suitable to both individual learners and corporate clients, Coursera fosters the spread of knowledge and expertise to students around the world.
The company went through its IPO in March 2021, and the general public is now free to buy Coursera education stock.
Note
COUR stock price today
Your capital is at risk.
Best Education Stocks to Buy #3: Chegg
Chegg, Inc. (NYSE: CHGG) is an American education technology company and learning platform specializing in assisting with homework, textbook rentals, study resources, and online tutoring.
Established in 2005, Chegg has proven helpful to students looking to rent or purchase textbooks and study materials at more affordable prices. Additionally, it offers access to exhaustive libraries of academic articles and resources, as well as homework assistance through its tutoring platform.
As one of the best education stocks to buy in 2024, the company was reported to have over 8.2 million subscribers. During the COVID-19 pandemic, the company was accused of enabling students to cheat, although it has since amended its rights of usage.
Note
CHGG stock price today
Your capital is at risk.
Best Education Stocks to Buy #4: Pearson
Pearson plc (LSE: PSON.L) is a prominent multinational publishing and education company and a global leader in education since the 20th century.
Pearson offers various educational products, such as textbooks, assessment tools, digital learning materials, and online courses for individual students, institutions, and teachers at all stages of education and training. The company is dedicated to innovation in education and emphasizes personalized learning and digital technologies.
With a market cap of $8.60 billion as of December 2023, Pearson is the world’s second-largest education company by market capitalization. It employs more than 20,000 people worldwide and provides its products and services to 200+ countries and regions.
Besides its primary London Stock Exchange listing, Pearson trades on the NYSE as well. As one of the best education stocks to buy, it is a constituent of the FTSE 100 index.
Note
PSON.L stock price today
Your capital is at risk.
Best Education Stocks to Buy #5: Skillsoft
Skillsoft (NYSE: SKIL) is a leading corporate digital learning and workforce solutions provider. It offers learning and training solutions for businesses to help their workforce develop the required skills.
Skillsoft’s major learning domains include leadership, technology, compliance, and skill development. The company helps organizations prepare for the future of their work, overcome crucial skill gaps, and develop the potential of their employees.
The platform includes extensive libraries with VODs, books, courses, boot camps, live events, and assessments, as well as an AI-powered learning experience platform called “Percipio” designed to make the experience more personalized and engaging. Furthermore, Skillsoft stated that many Fortune 500 businesses endorsed its platform.
Note
SKIL stock price today
Your capital is at risk.
How to buy education stocks: step-by-step
To invest in these education and technology companies using an online investing service, follow these steps:
Step 1: Choose a broker
Before buying education stocks, you need to gain entry into the stock market. The best type of service for this is a regulated online brokerage.
To securely buy education stocks, we recommend the following:
1. eToro
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
Best Platform for Worldwide Stock Trading & Investing
-
Highly trusted multi-asset broker with clients in over 200 countries
-
Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)
-
Low commissions starting at $0 with no platform fees or account minimums
-
Easily fund your account and trade assets in 26 currencies
-
IBKR pays up to 4.58% interest on cash balances of $10k or more
Step 2: Open and fund your account
After you have decided on the investing platform, you need to create and verify your account. Once successfully authorized, you should transfer funds to your account to buy education stocks in the next step.
Frequently used available funding methods include bank transfers, debit or credit cards, and financial transaction services like PayPal.
Step 3: Decide how much you want to invest
Minding your budget limitations cannot be overstated. Going beyond your financial capabilities can accrue dangerous levels of debt. To avoid this, make sure you have performed the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Remember
Step 4: Place your order and buy education stocks
The next step is to place an order and purchase the shares in education and technology companies:
- Step 1: Log into your investing service and find the ticker symbol of the education company you want to invest in;
- Step 2: Enter the sum or the number of shares you wish to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
The final step in investing continues for as long as you keep the education stocks in your portfolio. Staying informed about the fiscal performance of the educational stocks you invested in, along with the general education and technology sector tendencies, boosts the success chances of your investment.
Pros and cons of buying education stocks
Pros
- Ongoing demand: Education is an essential and ever-increasing need, especially in the digital age with the rise of new technologies. In fact, there is a consistent and rising demand for educational products and services offered by education companies;
- Resilient sector: Education stocks tend to be less susceptible to economic stability hits as most people continue to invest in education even during turbulent times;
- Technological advancements and innovation: With an accelerating trend of technological advances in education, there is an ongoing need for online learning platforms, adaptive learning systems, and educational software. The tech-driven advances provide a unique disruption potential to both investors and users;
- Diversification: Including education stocks in your portfolio represents an excellent way to diversify it. Spreading your investment across different sectors mitigates risk and gives you more control over the future of your capital.
Cons
- Regulatory and legislative changes: Education is universally subject to government regulations and policy changes. If the changes sufficiently affect a domain focused on by the company, it could impact its performance and the value of its stocks;
- Seasonality: The education sector depends on the academic calendar, with revenue fluctuations reflecting the cyclical nature of all stages of education;
- Competition: The education sector is highly competitive, with companies vying for their market share. This rivalry could affect profit margins and thus reduce the price of individual education stocks;
- Economic factors: Different conditions, like reduced government funding, can have a direct impact on education companies. Economic downturns can strain the budgets of governments and students alike, negatively affecting education stocks’ performance.
Common mistakes to avoid when investing
Make sure to avoid these common investing mistakes:
- Lack of research: Research the education stocks in detail, along with the market state of the education and technology sectors, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about best education stocks to buy in 2024
What are education stocks?
Education stocks are shares in publicly traded companies within the domain of the education and technology sector.
Is it safe to invest in education stocks?
Investing in individual stocks always carries a degree of risk, and education stocks are no exception. Perform your own research before you spend any money. Ensure to follow the guidelines provided in this guide for increased chances of successful investing.
How do I invest in education stocks?
Investing in education stocks is simple; you must register an account with an online investing service like eToro or Interactive Brokers, transfer the funds, and buy the shares.
What are the best education stocks to buy in 2024?
Some top education stocks to invest in now include Duolingo, Coursera, Chegg, Pearson, and Skillsoft.
Do education stocks pay dividends?
Of the entries in this list, only Pearson’s PSON.L is a dividend stock, with an annual dividend yield of 1.4% as of December 2023.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
