EDU Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: EDU's low price-to-book ratio and positive online education growth suggest potential for a rebound, especially with strategic pivots enhancing future prospects.




Bearish Case: Regulatory pressures in China's education sector and declining institutional interest may lead to continued uncertainty and downward pressure on EDU's stock.




Potential Outcomes: Stock appreciates due to undervaluation (40%), stabilizes if uncertainty persists (35%), or depreciates amid regulatory risks (25%).




Trading Oracle: Consider short-term debit spreads due to high implied volatility. Buy $50 call, sell $55 call for expiry in 1 month. This strategy leverages potential short-term rebound with limited downside risk, optimizing entry based on market volatility trends.



February 02, 2025


New Oriental Education & Technology Group Inc. - Forecast

EDU        New Oriental Education & Technology Group Inc. -











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