Zovio may prosper in the coming months. Why’s that?

Coronavirus changed lots of things in the world. People were forced to work and study from homes. While some companies offered online courses, such educational services are in especially high demand now. And this occupation proved very profitable for some stocks.

Zovio is an Arizona-based company that provides education technology services. This firm partners with higher education institutions and employers to offer educational solutions to their students and employees. Zovio has around 1,500 employees in several states.

It currently owns Ashford University. But the group will likely separate into two organizations. In that case, Ashford will become a self-governed, nonprofit higher-education institution, and it will have its own Board of Trustees. Zovio also offers Constellation, its learning platform, along with its assessment software Waypoint Outcomes, and its mobile application technology.

The company released first-quarter results for the three months ending on March 31 in late April. The stock’s revenue came at $97.9 million, lower than the revenue of $109.8 million in Q1 2019. Furthermore, its non-GAAP diluted income quarterly loss was 10 per share. The stock had lost 12 cents per share a year ago.

Year-over-year student numbers were lower than shareholders would have liked. According to management, total student enrollment was 35,335 students on March 31, 2020, much less compared with a total student enrollment of 39,095 on March 31, 2019.

Is this stock worth buying?

Zovio got listed in Nasdaq in April 2019. Before that, the stock was shy of $7, but by late March 2020, it hit an all-time low of $1.08. However, it is hovering at $2.9 now. This is a return of over 160% in three months.

While the stock declined during the last months, it still may gain in the future. In the coming months and years, we will probably see an increased move toward online education at all levels, including continuing corporate education for employees. As Zovio builds out solutions for growing education services markets stateside, it may reach new highs.