Education may not be the first sector that comes to mind when you're looking for new investment opportunities. But online learning has been steadily growing, especially since the COVID-19 pandemic, and education companies are pursuing exciting and profitable business opportunities.
Education companies are a diverse group. Some of them operate in-person campuses, others are tech companies, and still others offer a blend of physical and online services. After-school tutoring programs are increasingly popular, and for-profit education, despite receiving plenty of criticism, is still growing and providing valuable career training in a variety of industries.
Top education stocks
Here are some of the best education stocks to consider adding to your portfolio:
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1. Duolingo
Duolingo (DUOL -5.25%) is a familiar name for anyone who has studied another language. While there are many language learning apps available, Duolingo is by far the most popular. In July 2024, it was the leading language learning app by downloads with 14.3 million -- the next app on the list had less than 2 million.
There are over 100 courses teaching more than 40 languages on Duolingo. What makes it special is its fun, bite-sized modules. It makes learning easy and enjoyable, which keeps users coming back.
Those user numbers have been growing, too. Duolingo had 37.2 million daily active users as of the third quarter of 2024, a 54% year-over-year increase. Paid subscribers increased 47% from 5.8 to 8.6 million. And total revenue jumped by 40% from $137.6 to $192.6 million.
2. Stride
Stride (LRN 3.87%), formerly known as K12 Inc., is an education management organization offering virtual learning. Students can attend Stride's virtual public schools as an alternative to local public schools or homeschooling. Schools can partner with Stride for blended learning, which uses virtual content to supplement what students learn in the classroom. It also has adult learning programs for career training.
This education company benefited heavily when virtual learning became the norm in 2020. But even with schools reopening since then, it has continued to grow.
In its 2024 fiscal year, Stride posted revenue of $2 billion, an increase of 11% from 2023. Its net income numbers were even more impressive, jumping by 60.9% to $204.2 million.
3. New Oriental Education
New Oriental Education & Technology Group (EDU -0.65%) is the largest provider of private educational services in China. Tutoring for K-12 students has historically been its most successful service, and the company also has private learning centers, online education programs, and test preparation services.
China started imposing new regulations on private education companies in 2021 by not allowing them to advertise in state-owned media and restricting the services they can offer. While those regulations seriously affected the company and China's other top education stocks, New Oriental Education is one of that country's oldest education companies. Its diverse range of services gives it an edge over competitors that focus solely on online education.
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4. Zoom
Zoom Communications (ZM -0.04%) is the videoconferencing software of choice for many schools, businesses, and families. Its popularity exploded in 2020 as the COVID-19 pandemic turned Zoom into a household name and a verb. Movies and TV shows have even been filmed using Zoom, giving the company a mainstream appeal that bodes well for its business.
The last few years haven't been nearly as kind to Zoom or its shareholders. After reaching an all-time high in 2020, it lost more than 90% of its value.
While that's not an encouraging sign, Zoom was arguably overvalued at its previous peak. It's still a promising company. It has integrated artificial intelligence (AI) technology with Zoom AI Companion, which is free for its customers. And Zoom is profitable, with net income of $642.4 million for the first three quarters of its 2025 fiscal year (a 90% increase).
5. Bright Horizons Family Solutions
Bright Horizons Family Solutions (BFAM -0.85%) provides child care and early education for parents and employers. It operates more than 1,000 child care centers worldwide, with most located in the U.S. Many of its facilities had to shut down during the pandemic, so this company's outlook is trending upward after a difficult period.
Bright Horizons is notable because it creates a competitive advantage through its employer-sponsored services. The company partners with employers to provide on-site child care for employees. This service has low costs and high retention rates, and it's a market segment that Bright Horizons is dominating.
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6. Lincoln Educational Services
Lincoln Educational Services (LINC 0.81%) provides post-secondary career education and training. It's popular among young adults for its hands-on training in career-specific fields. Lincoln Educational offers the following types of training programs:
- Automotive repair
- Skilled trades such as welding and machining
- Health sciences
- Culinary arts
- Spa and cosmetology services
- Information technology support
Over the first three quarters of 2024, Lincoln Educational reported $320.7 million in revenue, a 16% increase from 2023. Student starts have also been on the rise. And with falling university enrollment numbers, Lincoln could be poised for significant growth if more high school graduates opt for career training.
7. John Wiley & Sons
Founded in 1807, John Wiley & Sons (WLY 1.12%) is a publishing company focusing on educational materials and academic publishing. In addition to physical books and journals, it also offers digital content and courses and exam prep. It's also the company behind the popular For Dummies brand and book series.
Wiley has a strong, established portfolio of brands. Notably for potential investors, it makes 48% of its money through recurring revenue. It's also one of the more reliable dividend stocks. It has a high dividend yield and more than 30 consecutive years of dividend increases.
As you might expect from a company that's more than 200 years old, Wiley generally delivers modest growth. For the first two quarters of its 2025 fiscal year, revenue numbers were down, but so were expenses, so its net income grew by almost $200 million. This is far from a growth stock, but it's one of the safer education companies, and it has an excellent dividend.
Related investing topics
Trends
Trends in the education sector
The education sector was upended by the COVID-19 pandemic as students of all ages transitioned to online learning to the benefit of companies offering virtual schooling and online educational content.
A longer-term trend in education is the decline in college enrollment rates, which dropped by 11.61% from 2010 to 2024. Technology is also shortening attention spans, which is increasing the popularity of companies that enable microlearning — consuming educational content in short modules of no more than 15 minutes.
Two more companies to consider are Coursera (COUR 0.33%) and Udemy (UDMY -1.96%), two online platforms that gives learners full control of their curriculum paths.
Should you buy
Should you buy education stocks?
Quite a few promising education companies could be winners for your portfolio. The top education stocks have shown themselves to be adaptable and capable of continuing to growing despite disruptions in the industry.
