About PERDOCEO EDUCATION Corp
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform.
As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.
PRDO operates in the Services | Personal Services | headquartered in SCHAUMBURG, Illinois | approximately 4,500 employees | led by CEO Andrew H. Hurst.
The $2.4B question: What happens when a company this good becomes this expensive?
The American consumer has always been a fickle beast — spending freely in good times and retreating in bad. PERDOCEO EDUCATION Corp has spent decades learning to read those moods, and right now, the reading is surprisingly sanguine.
At $2.4B in market capitalization, PERDOCEO EDUCATION Corp (PRDO) currently ranks #246 in our quantitative model, with a composite score of 75.7/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives PRDO the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 83/100 | 30% | Exceptional |
| Value | 75/100 | 15% | Fair |
| Momentum | 71/100 | 25% | Accelerating |
| Investment | 42/100 | 10% | Moderate |
| Stability | 44/100 | 10% | Volatile |
| Short Interest | 45/100 | 10% | Normal |
The quality score of 83/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 14.7%
- Net Margin: 18.8%
- Gross Margin: 1.0%
These aren't just good numbers. They're the kind of numbers that make PRDO a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like PRDO."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. PRDO is quality defined.
- Momentum is real. With a momentum score of 71/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 15.7x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
PERDOCEO EDUCATION Corp is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, PRDO is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 75.7/100 | Rank: #246 of 3,571 stocks
Sector: Consumer Discretionary
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.