Sectors & IndustriesConsumer DefensiveEducation & Training Services

Best Education Stocks to Buy Now (2026)

Top education stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best education stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best education stocks to buy right now are:

New Oriental Education & Technology Group (NYSE:EDU) is the #1 top education stock out of 43 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for New Oriental Education & Technology Group (NYSE:EDU) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: B.

New Oriental Education & Technology Group (NYSE:EDU) has a Due Diligence Score of 54, which is 24 points higher than the education industry average of 30.

EDU passed 20 out of 38 due diligence checks and has strong fundamentals. New Oriental Education & Technology Group has seen its stock lose -3.64% over the past year, overperforming other education stocks by 69 percentage points.

New Oriental Education & Technology Group has an average 1 year price target of $60.75, an upside of 14.28% from New Oriental Education & Technology Group's current stock price of $53.16.

New Oriental Education & Technology Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering New Oriental Education & Technology Group, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Youdao (NYSE:DAO) is the #2 top education stock out of 43 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Youdao (NYSE:DAO) is: Value: D, Growth: B, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: C.

Youdao (NYSE:DAO) has a Due Diligence Score of 37, which is 7 points higher than the education industry average of 30.

DAO passed 13 out of 33 due diligence checks and has average fundamentals. Youdao has seen its stock return 87.08% over the past year, overperforming other education stocks by 160 percentage points.

Youdao has an average 1 year price target of $22.00, an upside of 10.94% from Youdao's current stock price of $19.83.

Youdao stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Youdao, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Afya (NASDAQ:AFYA) is the #3 top education stock out of 43 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Afya (NASDAQ:AFYA) is: Value: A, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Afya (NASDAQ:AFYA) has a Due Diligence Score of 69, which is 39 points higher than the education industry average of 30.

AFYA passed 27 out of 38 due diligence checks and has strong fundamentals. Afya has seen its stock lose -26.09% over the past year, overperforming other education stocks by 47 percentage points.

Afya has an average 1 year price target of $14.75, an upside of 40.34% from Afya's current stock price of $10.51.

Afya stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Afya, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 7 education stocks that have issued dividends in the past year, the 3 education stocks with the highest dividend yields are:

Ihuman (NYSE:IH) has an annual dividend yield of 8.33%, which is 6 percentage points higher than the education industry average of 2.63%.

Strategic Education (NASDAQ:STRA) has an annual dividend yield of 4.4%, which is 2 percentage points higher than the education industry average of 2.63%. Strategic Education's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Strategic Education's dividend has shown consistent growth over the last 10 years.

Strategic Education's dividend payout ratio of 39.1% indicates that its high dividend yield is sustainable for the long-term.

Afya (NASDAQ:AFYA) has an annual dividend yield of 2.21%, which is the same as the education industry average of 2.63%.

Afya's dividend payout ratio of 13.8% indicates that its dividend yield is sustainable for the long-term.

Education stocks were up 0.8% in the last day, and down -1.96% over the last week.

We couldn't find a catalyst for why education stocks are up.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued education stocks right now are:

Phoenix Education Partners (NYSE:PXED) is the most undervalued education stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Phoenix Education Partners has a valuation score of 57, which is 29 points higher than the education industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Phoenix Education Partners's stock has dropped -41.69% in the past year. It has overperformed other stocks in the education industry by 31 percentage points.

Afya (NASDAQ:AFYA) is the second most undervalued education stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Afya has a valuation score of 100, which is 72 points higher than the education industry average of 28. It passed 7 out of 7 valuation due diligence checks.

Afya's stock has dropped -26.09% in the past year. It has overperformed other stocks in the education industry by 47 percentage points.

Perdoceo Education (NASDAQ:PRDO) is the third most undervalued education stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Perdoceo Education has a valuation score of 86, which is 58 points higher than the education industry average of 28. It passed 6 out of 7 valuation due diligence checks.

Perdoceo Education's stock has dropped -5.93% in the past year. It has overperformed other stocks in the education industry by 67 percentage points.

52.94% of education stocks rated by analysts are a strong buy right now. On average, analysts expect education stocks to rise by 43.85% over the next year.

0% of education stocks have a Zen Rating of A (Strong Buy), 32% of education stocks are rated B (Buy), 60% are rated C (Hold), 4% are rated D (Sell), and 4% are rated F (Strong Sell).