TAL Education (NYSE:TAL) Stock, Quote.Headers.trade-ideas

TAL Education

TAL Education Group is a smart learning solutions provider in China. K-9 academic afterschool tutoring used to account for the majority of TAL's revenue before the regulatory changes in 2021 that imposed a nonprofit requirement on the business. After spinning off its K-9 academic afterschool tutoring business, TAL realigned its focus toward enrichment learning and content solutions.

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Shares of TAL Education (NYSE: TAL) have been struggling lately and have lost 6.8% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears.

TAL Education Could Find a Support Soon, Here&#39;s Why You Should Buy the Stock Now

Asia

New Oriental Education & Technology Group

Key Takeaways:


	Before the restrictions, academic education contributed nearly 90% of Beststudy’s revenue but the company’s new extra-curricular courses now account for 40% of turnover
	The company has also launched study tours to gain a foothold in a market valued at more than a hundred billion yuan


　

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Shares of US-listed Chinese stocks are possibly trading higher ahead of expectations that the People's Bank of China will cut rates. Also, the sector may be experiencing strength after the Fed cut rates by 50 basis points.

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>)</h3>
<ul>
<li>On Aug. 1, TAL Education posted upbeat quarterly results. &#8220;In this quarter, our core focus remains on delivering quality products and managing our online and offline operational efficiency to serve learners effectively,&#8221; said Alex Peng, TAL&#8217;s President and Chief Financial Officer. The company's stock fell around 18% over the past month and has a <a href="https://www.benzinga.com/quote/TAL">52-week low of $6.81</a>.</li>
<li>RSI Value: 29.74</li>
<li>TAL Price Action: Shares of TAL Education fell 0.1% to close at $7.42 on Monday.</li>
<li>Benzinga Pro's real-time newsfeed alerted to<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1"> latest TAL news</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="888" height="835" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075544/image-129.png" alt="" class="wp-image-551611" style="width:700px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075544/image-129.png 888w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075544/image-129-300x282.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075544/image-129-768x722.png 768w" sizes="(max-width: 888px) 100vw, 888px" /></a></figure>
<h3 class="wp-block-heading">Gaotu Techedu Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOTU#NYSE">GOTU</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<ul>
<li>On Aug. 27, Gaotu Techedu posted a wider-than-expected quarterly loss. Larry Xiangdong Chen, the Company&#8217;s founder, Chairman and CEO, commented, &#8220;We achieved encouraging results in the second quarter, with net revenues increasing 43.6% year-over-year to RMB1.0 billion, reflecting strong accelerating growth momentum. As of June 30, 2024, our deferred revenue reached RMB1.6 billion, representing a 71.5% increase from the same point in time last year, ensuring robust support for our continued growth in the second half of the year.&#8221; The company's stock fell around 39% over the past month. It <a href="https://www.benzinga.com/quote/GOTU">has a 52-week low</a> of $2.22.</li>
<li>RSI Value: 27.21</li>
<li>GOTU Price Action: Shares of Gaotu Techedu fell 0.7% to close at $2.67 on Monday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1"> trend in GOTU stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="916" height="833" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075703/image-130.png" alt="" class="wp-image-551615" style="width:653px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075703/image-130.png 916w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075703/image-130-300x273.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075703/image-130-768x698.png 768w" sizes="(max-width: 916px) 100vw, 916px" /></a></figure>
<h3 class="wp-block-heading">Gogoro Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GGR#NASDAQ">GGR</a>)</h3>
<ul>
<li>On Aug. 27, Gogoro and Nebula Energy announced the commercial availability of its battery swapping and Smartscooters in the Kathmandu Valley. The company's shares fell around 36% over the past month and has a 52-week <a href="https://www.benzinga.com/quote/GGR">low of $0.84</a>.</li>
<li>RSI Value: 21.96</li>
<li>GGR Price Action: Shares of Gogoro fell 14.1% to close at $0.86 on Monday.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1">breakout in GGR shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091724&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="901" height="443" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075811/image-131.png" alt="" class="wp-image-551623" style="width:561px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075811/image-131.png 901w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075811/image-131-300x148.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/17075811/image-131-768x378.png 768w" sizes="(max-width: 901px) 100vw, 901px" /></a></figure>
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40877520/if-you-want-steel-you-do-nucor-says-cramer-when-asked-about-gerdau">&#8216;If You Want Steel, You Do Nucor,&#8217; Says Cramer When Asked About Gerdau</a></li>
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Shares of TAL Education (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tal#NYSE">TAL</a>) have been struggling lately and have lost 6.8% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.
While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this education services provider is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.
<img alt="1-month candlestick chart for TAL" class="chart" src="https://staticx-tuner.zacks.com/images/articles/charts/yseop/550/TAL_Hammer.jpeg" style="height:auto; width:100%" title="" />
<h2>What is a Hammer Chart and How to Trade It?</h2>
This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a &#39;hammer.&#39;
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day&#39;s close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
<h2>Here&#39;s What Increases the Odds of a Turnaround for TAL</h2>
An upward trend in earnings estimate revisions that TAL has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That&#39;s because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
Over the last 30 days, the consensus EPS estimate for the current year has increased 82.4%. What it means is that the sell-side analysts covering TAL are majorly in agreement that the company will report better earnings than they predicted earlier.
If this is not enough, you should note that TAL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market.
Moreover, a Zacks Rank of 2 for TAL Education is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company&#39;s prospects are beginning to improve.
<a href="https://www.zacks.com/stock/news/2330347/tal-education-tal-could-find-a-support-soon-here-s-why-you-should-buy-the-stock-now?cid=CS-BENZ-FT-tale_of_the_tape|hammer_chart_pattern_(ta)-2330347">To read this article on Zacks.com click here.</a>

TAL Education Could Find a Support Soon, Here's Why You Should Buy the Stock Now

<h4>Key Takeaways:</h4>
<ul>
<li>Before the restrictions, academic education contributed nearly 90% of Beststudy&rsquo;s revenue but the company&rsquo;s new extra-curricular courses now account for 40% of turnover</li>
<li>The company has also launched study tours to gain a foothold in a market valued at more than a hundred billion yuan</li>
</ul>
　
By Molly Wen
The latest earnings from&nbsp;China Beststudy Education Group&nbsp;(3978.HK) offer a lesson in using creative or critical thinking to find a way out of a crisis.
The company was badly hit by a clampdown on after-school tutoring three years ago, when the government acted to relieve study pressure on children. Beststudy was able to salvage its test-revision business from the cull, which targeted private tuition on subjects in the school curriculum, and then shifted towards offering enrichment programs and study tours to nurture non-academic talents.
Meanwhile, the policy environment recently became more supportive for education in general. In early August, China&rsquo;s government highlighted education services as a means of boosting consumption amid an uneven economic recovery, leading some investors to sense a possible loosening of the regulatory screws. Against this backdrop, the CSI SWS Education Index, which tracks training-related stocks, rose for nine days in a row.
Beststudy, a leading training enterprise in the south of China, benefited from the education rally. The company&rsquo;s share price has risen nearly 70% since the start of the year and investors got more positive news last week when Beststudy&rsquo;s revised business strategy helped to drive a jump in&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0808/2024080801034.pdf">half-year earnings</a>.
Revenue for the first six months of the year rose 68% to 317 million yuan ($44.30 million) from the same period a year earlier, while adjusted net profit surged nearly 169% to 54.41 million yuan. Turnover was still a far cry from the 1.1 billion yuan logged in the first half of 2021, but the profit leap serves to validate the decision to focus on holistic education, sidestepping the official school syllabus.
Before the clampdown in July 2021, Beststudy specialized in providing academic tutoring for individuals or small classes, segments that contributed nearly 90% of its revenue. The regulations wiped out the tutoring business, but Beststudy was still able to offer intensive pre-test coaching for students who were preparing to retake entrance exams for high school or college. The company also launched a range of vocational training courses as well as enrichment programs for school students, covering skills such as critical thinking, computer programming, literature appreciation and outdoors learning.
Income from full-time test preparation services jumped nearly 20% to 124 million yuan in the first half of the year. The company started out in 2000 by coaching high school students for college entrance exams. Five years later it added similar services for children preparing to take entrance tests for high schools. The pre-test business, which survived the government clampdown, offered the company a lifeline while it restructured its business.
<h4>Exploring other talents</h4>
Faced with the regulatory crisis, other training enterprises shifted to e-commerce and sales of educational hardware. But Beststudy saw a future in promoting learning outside the confines of the school syllabus, with programs labelled as talent education. The talent-based programs were designed to promote skills in areas such as critical thinking, nature study and scientific enquiry with courses including &ldquo;Curious Young Reporter&rdquo;, &ldquo;Thinking Planet&rdquo; and &ldquo;Literature and Aesthetic Education&rdquo;.
These courses were among the first batch of talent products to gain non-academic accreditation from education authorities in Guangdong Province in 2022. In the first half of 2024, Beststudy&rsquo;s revenue from the talent segment rocketed 321% to 118 million yuan, and the share of total revenue increased from nearly 15% in the first half of 2023 to just under 37%.
The company has also launched study tours to widen horizons and facilitate learning outside the classroom.&nbsp; China&rsquo;s market for study trips has flourished in recent years, reaching about 146.9 billion yuan in 2023, a year-on-year rise of nearly 62%, according to data from iiMedia Research. The research firm projects the market for educational travel will reach 242.2 billion yuan in 2026.
Players such as Beijing New Oriental Culture and Tourism, an arm of leading education firm&nbsp;New Oriental&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edu#NYSE">EDU</a>), and various travel agencies have also stepped into the market. Study tours typically include lessons from professional teachers and instructors, giving a familiar brand such as Beststudy an advantage when attracting learners.
Keen to boost economic growth, China issued guidelines on Aug. 3 highlighting areas with the potential for higher consumption, including education and training. The directive said education institutions, scientific research bodies and social organizations should be encouraged to make high-quality educational resources available to a wider public. Market-watchers initially saw the move as a signal of easing restrictions on tutoring services. But the policy actually aims to improve the quality and impact of vocational education, while encouraging qualified institutions to provide tutoring on non-academic subjects as a public service, with no fundamental changes to compulsory education.
In any case, the education sector is repairing the damage from the last few turbulent years, judging from operating profits and revenues in recent earnings reports. U.S.-listed&nbsp;TAL Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tal#NYSE">TAL</a>) recently returned to profit and reported revenues jumped 50% to $414 million for its first quarter to May 31.
Beststudy&rsquo;s price-to-earnings (P/E) ratio stands at around 17 times, well below the 36 times for New Oriental on the Hong Kong market. At these levels the stock may be worth the attention of investors, as education-related demand is still going strong, outpacing overall consumption.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) shares closed Tuesday down 5.30% at $8.58. Shares of U.S.-listed Chinese companies are trading lower after <a href="https://www.benzinga.com/government/24/08/40463780/whats-going-on-with-alibaba-and-other-chinese-stocks-on-tuesday">China&#8217;s central bank</a> left its one-year and five-year loan prime rates unchanged at&nbsp;3.35%&nbsp;and&nbsp;3.85%,&nbsp;respectively.
Why This Matters: The decision by China&#8217;s central bank to leave the one-year and five-year loan prime rates unchanged at 3.35% and 3.85%, respectively, is significant. This move indicates a conservative approach to monetary policy, suggesting that the Chinese government may not be aggressively stimulating the economy despite a fragile recovery. 
For companies like TAL Education, this can be problematic as it signals limited access to cheaper financing, which is crucial for growth, especially in a challenging economic environment.
The unchanged interest rates suggest that the Chinese government might not be providing enough stimulus to drive a significant economic recovery. This is concerning for companies across various sectors, including education, which rely on a robust economy to support consumer spending on services like tutoring and education programs.
Read Also: <a href="https://www.benzinga.com/news/24/08/40465302/why-draganfly-dpro-stock-is-volatile-today">Why Draganfly Stock Is Volatile Today</a>
<h1 class="wp-block-heading">How To Buy TAL Stock</h1>
Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange-traded fund (ETF) that holds the stock itself, or by allocating to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in TAL Education&#8217;s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, TAL has a 52-week high of $15.52 and a 52-week low of $6.24.
Read Next: <a href="https://www.benzinga.com/news/24/08/40474742/jobs-data-could-be-off-by-1-million-when-labor-department-revises-figures-what-it-means-for-the-fed">• Jobs Data Could Be Off By 1 Million When Labor Department Revises Figures: What It Means For The Fed</a>

Global

Why TAL Education Group Stock Is Falling

BILI

Shares of US-listed Chinese stocks are trading lower ahead of upcoming economic data.

<h4>Key Takeaways:</h4>
<ul>
<li>YXT.com has filed for a New York IPO, aiming to sell investors on its position as China&rsquo;s largest digital corporate learning company</li>
<li>YXT is trying to sell investors on its big growth potential, even as its revenue contracted in this year&rsquo;s first quarter</li>
</ul>
By Edith Terry
When corporate learning software as a service (SaaS) company&nbsp;YXT.com Group Holding Ltd.&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1872090/000119312524191095/d196858df1a.htm">filed to list</a>&nbsp;on the Nasdaq last week, the reaction was hardly one of excitement. One analyst said to &ldquo;avoid it,&rdquo; noting the company&rsquo;s declining revenues and history of losses.
But the muted response hasn&rsquo;t stopped YXT.com from moving ahead with what could be one of the larger IPOs by a Chinese company in New York this year. YXT.com plans to sell 2.75 million American Depositary Shares (ADS) for between $11 and $13 apiece, raising up to $36 million. A pricing at the middle of that range would give the company a market cap of about $650 million.
Despite its commanding position as China&rsquo;s largest digital corporate learning SaaS provider, YXT.com&rsquo;s financials have been relatively weak in the last two years. Its revenue fell slightly from 431 million yuan ($69 million) in 2022 to 424 million yuan last year &ndash; never a great sign for any company in a growth industry.
What&rsquo;s worse, the revenue declines accelerated in this year&rsquo;s first quarter, skidding 33% to 83.2 million from 122.2 million yuan a year earlier. Gross profit for the latest three-month period fell as well, from 77.6 million yuan in 2023 to 52 million yuan in 2024.
Those contractions aren&rsquo;t too surprising, since many corporations have begun reining in their spending as China&rsquo;s economy slows after years of rapid growth. Still, the accelerating rate of contraction this year will hardly reassure potential investors.
One brighter spot was YXT.com&rsquo;s bottom line profit, which turned positive in the first quarter of 2024, to 35 million yuan from a loss of 65.2 million yuan a year earlier. But even there, that profit was only possible due to a one-time gain, and the company continued to lose money on an operating basis. Its losses in general are narrowing, falling from 1 billion yuan in 2022 to 230 million yuan last year.
YXT.com said some of its red ink owes to an ongoing legal battle involving a publisher affiliated with the highly regarded Shanghai-based China Europe International Business School (CEIBS). CEIBS Publishing was established in 2007, in an agreement between the school and venture capitalist and CEIBS board member Eric X. Li, to publish business case studies and other materials generated by CEIBS.
In 2018 and 2019, CEIBS became unhappy with the arrangement, and in 2019 Li and other shareholders sold their 39% of the company to the holding company previously behind YXT.com, called Unicentury. YXT.com later absorbed the publishing company into its subscription-based corporate business. But when CEIBS found out about that, it issued a complaint and the case went into arbitration in Hong Kong.
While the arbitration is still ongoing, YXT.com removed CEIBS Publishing&rsquo;s finances from its own income statement as of last January. In the first three months of 2024, that resulted in 20.6 million yuan in lost revenue. If that figure was added back to YXT.com&rsquo;s first-quarter results this year, its revenue would have declined by a milder &ndash; but still not encouraging &ndash; 15% to 103.8 million yuan this year from 122.2 million yuan in 2023.
<h3>Customer Hit</h3>
The CEIBS dispute has also affected YXT.com&rsquo;s customer list. At the end of last year the company had 3,501 customers, including 200 Fortune 500 companies in China, in 20 industries, including consumer, healthcare, manufacturing, technology and electric vehicles. But the number had dropped to 2,545 customers by the end of March, after the elimination of 845 customers from CEIBS Publishing Group.
While the CEIBS dispute doesn&rsquo;t look encouraging, YXT.com &ndash; whose name means &ldquo;cloud learning palace&rdquo; &ndash; does have a more stable story to tell with its core subscription services for corporate learning. Most of its revenue comes from such subscriptions, and revenues from that segment grew from 81.4% of the total in the first three months of 2023 to 92.5% in the first quarter of 2024. Still, that part of the business is also contracting.
The company is also a leader in its space, with five times the number of subscribers of its nearest competitors. That could position it well for growth in a Chinese corporate learning market where digital services accounted for just 19.6% of the overall market last year.
The digital services share of the corporate learning market is expected to grow to 23.3% of the total by 2028, worth about 300 billion yuan out of 1.2 trillion yuan for broader market. YXT.com is also turning its focus away from smaller customers to focus on more profitable large enterprises.
Meanwhile, the company&rsquo;s cash is starting to run low, which may explain the timing of its IPO. It had just 219 million yuan in cash at the end of March 2024, down by about a third from 320 million yuan at the end of last year and 432 million at the end of 2022.
The company boasts an A-list of backers, including Tencent and Sequoia Capital, and raised $190 million in a funding round in 2021. That valued YXT.com at $1 billion at the time, meaning it has lost roughly a third of its value since then.
Anyone who follows China&rsquo;s edtech sector will recall that investors got badly burned after a massive crackdown in 2021, when the government banned most after-school tutoring services from K-12 educators. The resulting bloodbath wiped billions of dollars off the market value of companies like&nbsp;New Oriental Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edu#NYSE">EDU</a>) and&nbsp;TAL Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tal#NYSE">TAL</a>).
Some companies went on to reinvent themselves in completely different sectors, while others moved into areas like study abroad preparation and early education that weren&rsquo;t affected. Providers of education for adults, including vocational education and the kinds of services offered by YXT.com, were never affected, though private education in general remains a sensitive sector in China.
A potential peer comparison for YXT.com could be San Francisco-based online corporate training company&nbsp;Udemy&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/udmy#NASDAQ">UDMY</a>), which entered the China market in August 2022 with local partner Sanjieke, an online education platform targeting IT professionals. Udemy is aiming for 2,000 customers by 2025 &ndash; still far lower than YXT.com&rsquo;s portfolio.
Udemy currently trades at a price-to-sales (P/S) ratio of 1.42. That compares with a far higher ratio of nearly 11 that YXT.com would be seeking if its shares price in the middle of their range. That suggests YXT.com it believes investors will buy into its growth story even as China&rsquo;s economy runs into headwinds.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Small Cap

UDMY

Don't Write Off China Edtech Just Yet, Says IPO-Bound YXT.com

Citigroup analyst Alice Cai maintains TAL Education (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) with a Buy and lowers the price target from $21.3 to $13.4.

Price Target

Citigroup Maintains Buy on TAL Education, Lowers Price Target to $13.4

ABNB

AGAE

BIRK

CENN

CLEU

CROX

CVCO

DECK

ECDA

EXPE

FEDU

FNKO

GORV

LAUR

MICS

MOND

NWTN

POOL

PRKS

RENT

RIVN

SERV

WOOF

Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness following weak US data.

TAL Education shares are trading lower. The company reported Q1 financial results.

TAL Education (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) reported quarterly earnings of $0.05 per share which beat the analyst consensus estimate of $(0.01) by 600 percent. The company reported quarterly sales of $414.187 million which beat the analyst consensus estimate of $394.198 million by 5.07 percent. This is a 50.37 percent increase over sales of $275.440 million the same period last year.

Earnings Beats

TAL Education Q1 2025 Adj. EPS $0.05 Beats $(0.01) Estimate, Sales $414.187M Beat $394.198M Estimate

Shares of CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) fell sharply during Monday&#8217;s session. Guggenheim analyst John Difucci downgraded the stock from Buy to Neutral, while BTIG analyst Gray Powell downgraded the stock from <a href="https://www.benzinga.com/news/24/07/39886199/crowdstrike-faces-downgrades-amid-concerns-over-pricing-and-renewals-following-disruption">Buy to Neutral</a>.
CrowdStrike shares dipped over 11% on Friday after the company suffered a major outage impacting businesses around the world.
Selective Insurance Group shares dipped 13.2% to $264.65 on Friday.
Here are some other stocks moving in today&#8217;s mid-day session.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>MIRA Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MIRA#NASDAQ">MIRA</a>) shares climbed 148% to $1.98 after the company announced new preclinical study results for its novel oral ketamine analog, Ketamir-2.</li>
<li>CareMax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMAX#NASDAQ">CMAX</a>) gained 135% to $3.72.</li>
<li>Tellurian Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TELL#NASDAQ">TELL</a>) jumped 64.5% to $0.9401 after the company announced it will be acquired by Woodside Energy for approximately $900 million.</li>
<li>Serve Robotics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) shares climbed 46.6% to $11.08 after Nvidia last week disclosed a stake in the company.</li>
<li>Cassava Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAVA#NASDAQ">SAVA</a>) rose 27.2% to $12.82 after the company announced its first Phase 3 trial is expected to conclude by December and its second Phase 3 trial is expected to conclude by June 2025.</li>
<li>MEI Pharma, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MEIP#NASDAQ">MEIP</a>) surged 24% to $3.55 after the company announced it is considering strategic alternatives.</li>
<li>Society Pass Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOPA#NASDAQ">SOPA</a>) rose 22.8% to $1.56.</li>
<li>LivePerson, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPSN#NASDAQ">LPSN</a>) gained 18.8% to $1.17.</li>
<li>Super League Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLE#NASDAQ">SLE</a>) jumped 18.8% to $1.33. Super League Enterprise Director Jeff Patrick Gehl bought a total of 50,000 shares at an average price of $1.11.</li>
<li>Richtech Robotics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RR#NASDAQ">RR</a>) shares gained 18.2% to $1.74 after gaining around 228% on Friday.</li>
<li>Sonoma Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNOA#NASDAQ">SNOA</a>) gained 17% to $0.3602.</li>
<li>Alpha Teknova, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TKNO#NASDAQ">TKNO</a>) climbed 16.5% to $2.53.</li>
<li>Embecta Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMBC#NASDAQ">EMBC</a>) gained 16.4% to $15.34. Embecta is scheduled to host a conference call to discuss its fiscal third quarter 2024 financial results on Friday, Aug. 9.</li>
<li>Netcapital Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCPL#NASDAQ">NCPL</a>) rose 16.2% to $0.1208 after jumping more than 12% on Friday. Netcapital, last week, announced the launch of the beta version of its secondary trading platform.</li>
<li>Nukkleus Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NUKK#NASDAQ">NUKK</a>) gained 14.7% to $0.3670.</li>
<li>Terex Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEX#NYSE">TEX</a>) climbed 11.2% to $62.76 after the company inked a deal to acquire Environmental Solutions Group (ESG) from Dover Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOV#NYSE">DOV</a>) in a $2.0 billion all-cash transaction.</li>
<li>Canopy Growth Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) gained 10.5% to $7.88.</li>
<li>Aveanna Healthcare Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVAH#NASDAQ">AVAH</a>) rose 10.5% to $3.80. Aveanna Healthcare will release its second quarter results before the market open on Thursday, Aug. 8.</li>
<li>Karooooo Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KARO#NASDAQ">KARO</a>) gained 10.4% to $37.78</li>
<li>Richtech Robotics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RR#NASDAQ">RR</a>) rose 10% to $1.6050 after the company installed its advanced robotic beverage system, ADAM, at Ghost Kitchens International Inc. in Dawsonville, Georgia.</li>
<li>Clearwater Paper Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLW#NYSE">CLW</a>) gained 9.6% to $53.65 after the company announced a deal to sell its tissue business for $1.06 billion.</li>
<li>SentinelOne, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) gained 9.5% to $23.80 after a failed software update from CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) caused global outages.</li>
<li>TuanChe Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TC#NASDAQ">TC</a>) shares gained 8.5% to $1.6599 after falling 6% on Friday.</li>
<li>TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) rose 7.4% to $10.84. TAL Education will release its unaudited financial results for the first quarter, before the opening bell on Thursday, Aug. 1.</li>
<li>MINISO Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MNSO#NYSE">MNSO</a>) rose 5.6% to $18.10.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Linkage Global Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGCB#NASDAQ">LGCB</a>) shares dipped 29.1% to $3.6303.</li>
<li>Selina Hospitality PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLNA#NASDAQ">SLNA</a>) fell 20.7% to $0.0375.</li>
<li>TRxADE HEALTH, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MEDS#NASDAQ">MEDS</a>) declined 20.3% to $11.75.</li>
<li>Hawaiian Electric Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HE#NYSE">HE</a>) shares fell 20.2% to $13.97. Hawaiian Electric Industries shares traded higher on Friday following a report suggesting the company reached a settlement plan over the Maui wildfires.</li>
<li>Nature Wood Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWGL#NASDAQ">NWGL</a>) dipped 20.2% to $1.98.</li>
<li>Dogness (International) Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOGZ#NASDAQ">DOGZ</a>) declined 18.3% to $12.17.</li>
<li>Agape ATP Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATPC#NASDAQ">ATPC</a>) declined 16.8% to $0.1330.</li>
<li>Ryanair Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RYAAY#NASDAQ">RYAAY</a>) shares fell 16.6% to $95.25 after the company said profits dipped 46% to 360 million euros (£303 million) for the three months to June 30.</li>
<li>PS International Group Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSIG#NASDAQ">PSIG</a>) fell 16.4% to $2.85.</li>
<li>Portage Biotech Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRTG#NASDAQ">PRTG</a>) shares fell 16.2% to $0.1912 after gaining around 25% on Friday.</li>
<li>Salarius Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLRX#NASDAQ">SLRX</a>) shares dipped 16.1% to $1.53 after falling around 25% on Friday. Salarius Pharmaceuticals was recently notified by MD Anderson Cancer Center of a Grade 4 adverse event in the Seclidemstat clinical trial.</li>
<li>Exicure, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XCUR#NASDAQ">XCUR</a>) shares fell 16.1% to $0.4490 after surging 76% on Friday.</li>
<li>Savers Value Village, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SVV#NYSE">SVV</a>) declined 12.6% to $10.19 after JP Morgan downgraded the stock from Overweight to Neutral and lowered its price target from $21 to $12.</li>
<li>Fitell Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTEL#NASDAQ">FTEL</a>) fell 11.1% to $19.68.</li>
<li>Applied Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) dipped 9.1% to $5.20.</li>
<li>Valens Semiconductor Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLN#NYSE">VLN</a>) fell 8.6% to $2.64. Valens Semiconductor will release its second quarter 2024 financial results before the opening bell on Wednesday, Aug. 7.</li>
<li>Virios Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIRI#NASDAQ">VIRI</a>) fell 8.2% to $0.2311 after declining over 4% on Friday.</li>
<li>NuScale Power Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>) declined 6.7% to $10.54.</li>
<li>Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) declined 6.4% to $38.94 following a second-quarter revenue miss.</li>
<li>e.l.f. Beauty, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELF#NYSE">ELF</a>) fell 5.3% to $168.18.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39881674/top-4-tech-stocks-that-may-explode-in-july">Top 4 Tech Stocks That May Explode In July</a></li>
</ul>

Intraday Update

Movers

APLD

ATPC

AVAH

CMAX

CRWD

DOGZ

EMBC

FTEL

KARO

LGCB

LPSN

MEDS

MEIP

MIRA

MNSO

NCPL

NUKK

NWGL

PRTG

PSIG

RYAAY

SAVA

SLNA

SLRX

SNOA

SOPA

TELL

TKNO

VIRI

XCUR

Why CrowdStrike Shares Are Trading Lower By Around 13%? Here Are Other Stocks Moving In Monday's Mid-Day Session

U.S. stocks were higher, with the Nasdaq Composite gaining over 100 points on Monday.
Shares of IQVIA Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IQV#NYSE">IQV</a>) rose sharply during Monday's session after the company released better-than-expected second-quarter financial results and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39885871/iqvia-is-a-solid-investment-with-strong-competitive-positioning-analyst-says-after-">raised its 2024 guidance</a>.
IQVIA reported a second adjusted EPS of $2.64, up from $2.43, beating the consensus of $2.57. Provider of advanced analytics reported sales of $3.81 billion, beating the consensus of $3.79 billion, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
IQVIA Holdings shares jumped 7.4% to $241.07 on Monday.
Here are some other big stocks recording gains in today&#8217;s session.
<ul>
<li>Tellurian Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TELL#NASDAQ">TELL</a>) shares surged 64.5% to $0.9401 after the company announced it will be acquired by Woodside Energy for approximately $900 million.</li>
<li>Serve Robotics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) shares gained 46.6% to $11.08 after Nvidia last week disclosed a stake in the company.</li>
<li>Cassava Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAVA#NASDAQ">SAVA</a>) gained 27.2% to $12.82 after the company announced its first Phase 3 trial is expected to conclude by December and its second Phase 3 trial is expected to conclude by June 2025.</li>
<li>Embecta Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMBC#NASDAQ">EMBC</a>) climbed 16.4% to $15.34. Embecta is scheduled to host a conference call to discuss its fiscal third quarter 2024 financial results on Friday, Aug. 9.</li>
<li>Terex Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEX#NYSE">TEX</a>) gained 11.2% to $62.76 after the company inked a deal to acquire Environmental Solutions Group (ESG) from Dover Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOV#NYSE">DOV</a>) in a $2.0 billion all-cash transaction.</li>
<li>Aveanna Healthcare Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVAH#NASDAQ">AVAH</a>) gained 10.5% to $3.80. Aveanna Healthcare will release its second quarter results before the market open on Thursday, Aug. 8.</li>
<li>Karooooo Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KARO#NASDAQ">KARO</a>) climbed 10.4% to $37.78.</li>
<li>Eliem Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ELYM#NASDAQ">ELYM</a>) gained 9.7% to $8.01.</li>
<li>Clearwater Paper Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLW#NYSE">CLW</a>) rose 9.6% to $53.65 after the company announced a deal to sell its tissue business for $1.06 billion.</li>
<li>SentinelOne, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) shares climbed 9.5% to $23.80 after a failed software update from CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) caused global outages.</li>
<li>Summit Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMMT#NASDAQ">SMMT</a>) gained 9% to $9.57.</li>
<li>Sasol Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSL#NYSE">SSL</a>) rose 8.8% to $7.96.</li>
<li>Rentokil Initial plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTO#NYSE">RTO</a>) surged 8% to $31.91 following a report suggesting former BT CEO Philip Jansen is in talks to acquire the company.</li>
<li>Noah Holdings Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOAH#NYSE">NOAH</a>) rose 7.7% to $7.78.</li>
<li>TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) gained 7.4% to $10.84. TAL Education will release its unaudited financial results for the first quarter, before the opening bell on Thursday, Aug. 1.</li>
<li>Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) gained 5.6% to $68.32 after the company announced deals with major sports leagues to get content to its site and draw advertisers.</li>
<li>MINISO Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MNSO#NYSE">MNSO</a>) gained 5.6% to $18.10.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39881674/top-4-tech-stocks-that-may-explode-in-july">Top 4 Tech Stocks That May Explode In July</a></li>
</ul>

ELYM

NOAH

RDDT

SMMT

IQVIA Posts Upbeat Earnings, Joins Terex, Reddit And Other Big Stocks Moving Higher On Monday

TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) shares are trading higher by 7.48% to $10.85 during Monday&#8217;s session. Chinese stock prices are rising following China's reduction of <a href="https://www.benzinga.com/government/24/07/39878618/whats-going-on-with-alibaba-and-other-chinese-stocks-on-monday">key interest rates</a>.
The People's Bank of China (PBOC) lowered key interest rates, including the seven-day reverse repo rate and the one-year and five-year loan prime rates. Lower interest rates reduce borrowing costs for businesses and consumers, leading to increased spending and investment. This economic stimulus can lead to higher demand for educational services as families feel more financially secure and are more willing to invest in their children&#8217;s education.
Education is often considered a relatively resilient sector during economic fluctuations. As the Chinese government takes steps to stabilize and stimulate the economy, investors may see education stocks as a safer bet compared to more volatile sectors. The perceived stability and essential nature of educational services can make TAL Education an attractive investment during times of economic policy shifts.
Read Also: <a href="https://www.benzinga.com/news/24/07/39884657/ford-gm-face-profit-decline-as-ev-sales-slow-and-cyber-outages-persist">Ford, GM Face Profit Decline As EV Sales Slow And Cyber Outages Persist</a>
<h2 class="wp-block-heading">Is TAL A Good Stock To Buy?</h2>
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.
TAL Education has reported average annual revenue growth of 26.86% over the past 5 years.
It's also important to pay attention to valuation when deciding whether to buy a stock. TAL Education has a forward P/E ratio of 15.06. This means investors are paying $15.06 for each dollar of expected earnings in the future. The average forward P/E ratio of TAL Education's peers is 26.88.
Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out <a href="https://pro.benzinga.com">Benzinga PRO</a>. 
TAL has a 52-week high of $15.52 and a 52-week low of $6.03.

Why TAL Education Stock Is Seeing Blue Skies

Shares of US-listed Chinese stocks are trading higher after the People's Bank of China announced a cut in benchmark lending rates.

TAL Education's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) short percent of float has risen 6.59% since its last report. The company recently reported that it has 24.84 million shares sold short, which is 4.53% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.78 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>TAL Education Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721052019_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for TAL Education has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing TAL Education's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, TAL Education's peer group average for short interest as a percentage of float is 5.87%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into TAL Education's Recent Short Interest

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TSLA</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>06/07/24</td>
<td>$177.50</td>
<td>$25.6K</td>
<td>7.8K</td>
<td>9.8K</td>
</tr>
<tr>
<td>GME</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>06/21/24</td>
<td>$30.00</td>
<td>$31.0K</td>
<td>22.5K</td>
<td>6.2K</td>
</tr>
<tr>
<td>AMZN</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$182.50</td>
<td>$59.2K</td>
<td>17.0K</td>
<td>1.5K</td>
</tr>
<tr>
<td>SBUX</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$85.00</td>
<td>$46.8K</td>
<td>3.4K</td>
<td>946</td>
</tr>
<tr>
<td>AAP</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$60.00</td>
<td>$28.2K</td>
<td>1.5K</td>
<td>652</td>
</tr>
<tr>
<td>F</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/18/26</td>
<td>$9.82</td>
<td>$47.0K</td>
<td>5.4K</td>
<td>496</td>
</tr>
<tr>
<td>TAL</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$15.00</td>
<td>$72.0K</td>
<td>232</td>
<td>304</td>
</tr>
<tr>
<td>CAVA</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/07/24</td>
<td>$86.00</td>
<td>$25.0K</td>
<td>264</td>
<td>295</td>
</tr>
<tr>
<td>FIVE</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$145.00</td>
<td>$82.6K</td>
<td>293</td>
<td>222</td>
</tr>
<tr>
<td>MCD</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/16/26</td>
<td>$260.00</td>
<td>$382.9K</td>
<td>73</td>
<td>200</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• For TSLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), we notice a put option trade that happens to be neutral, expiring in 3 day(s) on June 7, 2024. This event was a transfer of 60 contract(s) at a $177.50 strike. The total cost received by the writing party (or parties) was $25.6K, with a price of $427.0 per contract. There were 7856 open contracts at this strike prior to today, and today 9899 contract(s) were bought and sold. 
• For GME (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>), we notice a call option sweep that happens to be neutral, expiring in 17 day(s) on June 21, 2024. This event was a transfer of 57 contract(s) at a $30.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $31.0K, with a price of $543.0 per contract. There were 22571 open contracts at this strike prior to today, and today 6201 contract(s) were bought and sold. 
• For AMZN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), we notice a call option trade that happens to be bullish, expiring in 17 day(s) on June 21, 2024. This event was a transfer of 250 contract(s) at a $182.50 strike. The total cost received by the writing party (or parties) was $59.2K, with a price of $237.0 per contract. There were 17089 open contracts at this strike prior to today, and today 1531 contract(s) were bought and sold. 
• For SBUX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), we notice a call option sweep that happens to be bearish, expiring in 73 day(s) on August 16, 2024. This event was a transfer of 132 contract(s) at a $85.00 strike. This particular call needed to be split into 14 different trades to become filled. The total cost received by the writing party (or parties) was $46.8K, with a price of $355.0 per contract. There were 3483 open contracts at this strike prior to today, and today 946 contract(s) were bought and sold. 
• Regarding AAP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>), we observe a put option sweep with bearish sentiment. It expires in 73 day(s) on August 16, 2024. Parties traded 115 contract(s) at a $60.00 strike. This particular put needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $28.2K, with a price of $244.0 per contract. There were 1505 open contracts at this strike prior to today, and today 652 contract(s) were bought and sold. 
• For F (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), we notice a put option sweep that happens to be bullish, expiring in 927 day(s) on December 18, 2026. This event was a transfer of 346 contract(s) at a $9.82 strike. This particular put needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $47.0K, with a price of $136.0 per contract. There were 5464 open contracts at this strike prior to today, and today 496 contract(s) were bought and sold. 
• For TAL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>), we notice a call option trade that happens to be bearish, expiring in 591 day(s) on January 16, 2026. This event was a transfer of 300 contract(s) at a $15.00 strike. The total cost received by the writing party (or parties) was $72.0K, with a price of $240.0 per contract. There were 232 open contracts at this strike prior to today, and today 304 contract(s) were bought and sold. 
• For CAVA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAVA#NYSE">CAVA</a>), we notice a put option trade that happens to be bearish, expiring in 3 day(s) on June 7, 2024. This event was a transfer of 200 contract(s) at a $86.00 strike. The total cost received by the writing party (or parties) was $25.0K, with a price of $125.0 per contract. There were 264 open contracts at this strike prior to today, and today 295 contract(s) were bought and sold. 
• Regarding FIVE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVE#NASDAQ">FIVE</a>), we observe a call option sweep with bullish sentiment. It expires in 17 day(s) on June 21, 2024. Parties traded 172 contract(s) at a $145.00 strike. This particular call needed to be split into 29 different trades to become filled. The total cost received by the writing party (or parties) was $82.6K, with a price of $490.0 per contract. There were 293 open contracts at this strike prior to today, and today 222 contract(s) were bought and sold. 
• For MCD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), we notice a put option trade that happens to be neutral, expiring in 591 day(s) on January 16, 2026. This event was a transfer of 200 contract(s) at a $260.00 strike. The total cost received by the writing party (or parties) was $382.9K, with a price of $1915.0 per contract. There were 73 open contracts at this strike prior to today, and today 200 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AMZN

CAVA

FIVE

SBUX

TSLA

10 Consumer Discretionary Stocks Whale Activity In Today's Session

TAL Education shares are trading higher following better-than-expected Q4 financial results.

Shares of Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) rose sharply in today's pre-market trading after the company posted upbeat first-quarter results and issued strong <a href="https://www.benzinga.com/quote/TER/earnings">second-quarter forecast</a>.
Teradyne posted adjusted earnings of 51 cents per share, beating market estimates of 33 cents per share. The company's quarterly sales came in at $599.819 million versus expectations of $566.310 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Teradyne shares jumped 8.4% to $109.20 in pre-market trading.
Here are some other stocks moving in pre-market trading.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Intelligent Living Application Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILAG#NASDAQ">ILAG</a>) shares gained 57.3% to $0.8496 in pre-market trading after gaining over 12% on Wednesday.</li>
<li>reAlpha Tech Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRE#NASDAQ">AIRE</a>) gained 31.8% to $1.53 in pre-market trading after jumping 93% on Wednesday.</li>
<li>Nuwellis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NUWE#NASDAQ">NUWE</a>) climbed 25.9% to $0.3174 in pre-market trading after dipping 15% on Wednesday.</li>
<li>Cidara Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDTX#NASDAQ">CDTX</a>) gained 23% to $15.11 in pre-market trading after the company announced the divestiture of rezafungin to Mundipharma&#x2A;, reacquired global development and commercial rights to CD388 and announced $240 million in private placement financing.</li>
<li>ImmunityBio, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBRX#NASDAQ">IBRX</a>) rose 15.4% to $5.56 in today's pre-market trading after the company reported results of Anktiva combined with checkpoint inhibitors in non-small cell lung cancer.</li>
<li>Hitek Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HKIT#NASDAQ">HKIT</a>) shares gained 13.3% to $1.53 in pre-market trading.</li>
<li>Serve Robotics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) shares gained 9.6% to $3.09 in pre-market trading after dipping 11% on Wednesday.</li>
<li>Ascent Solar Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTI#NASDAQ">ASTI</a>) shares rose 9.1% to $0.099 in pre-market trading after falling 11% on Wednesday.</li>
<li>TAL Education Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAL#NYSE">TAL</a>) shares rose 9.1% to $13.38 in pre-market trading following upbeat quarterly results.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Biophytis S.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BPTS#NASDAQ">BPTS</a>) fell 36% to $6.08 in pre-market trading. Biophytis announced transfer of ADSs to OTC Market.</li>
<li>Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSSE#NASDAQ">CSSE</a>) declined 22.2% to $0.3307 in pre-market trading. Chicken Soup For The Soul Entertainment received delinquency letter from the Nasdaq.</li>
<li>Zapp Electric Vehicles Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZAPP#NASDAQ">ZAPP</a>) fell 18.7% to $3.21 in pre-market trading after dipping 15% on Wednesday.</li>
<li>ESGL Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESGL#NASDAQ">ESGL</a>) shares fell 14.5% to $0.54 in pre-market trading.</li>
<li>iSun, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISUN#NASDAQ">ISUN</a>) fell 13.5% to $0.0812 in pre-market trading. iSun shares dipped 38% on Wednesday after the company announced a reverse stock split.</li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares declined 12.9% to $429.25 in pre-market trading after reporting first-quarter results.</li>
<li>BranchOut Food Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOF#NASDAQ">BOF</a>) fell 10.1% to $1.87 pre-market trading. BranchOut Food shares jumped 82% on Wednesday after the company announced it has expanded its existing relationship with the nation&#8217;s largest retailer, which brings the total annualized value of commitments from the retailer to over $8 million.</li>
<li>International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) fell 8.4% to $168.73 in pre-market trading after the company reported mixed first-quarter financial results. The company also announced it will acquire HashiCorp.</li>
<li>Vista Energy, S.A.B. de C.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIST#NYSE">VIST</a>) shares fell 8.3% to $39.80 in pre-market trading after the company reported worse-than-expected first-quarter financial results.</li>
<li>Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) fell 5% to $10.53 pre-market trading.</li>
</ul>
Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38402120/top-3-industrials-stocks-that-are-set-to-fly-in-april">Top 3 Industrials Stocks That Are Set To Fly In April</a>

AIRE

ASTI

BPTS

CDTX

CSSE

ESGL

HKIT

IBRX

ILAG

ISUN

NUWE

SNAP

VIST

ZAPP

Why Teradyne Shares Are Trading Higher By Over 8%; Here Are 20 Stocks Moving Premarket

Buybacks

TAL Education's Board Of Directors Extend The Share Repurchase Program Launched In April 2021 By Another 12 Months

TAL Education (TAL) has disclosed a new risk, in the Environmental / Social category. TAL Education faces heightened scrutiny over its ESG practice...

ESG Pressures Mount on TAL Education: Stakeholders Demand Transparency Amid Financial Risks

TAL Education: Underappreciated Growth

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The iShares MSCI China ETF (NASDAQ:<a href="https://investorplace.com/stock-quotes/mchi-stock-quote/">MCHI</a>) has surged by more than <a href="https://investorplace.com/stock-quotes/mchi-stock-quote/">8%</a> in the past six months, suggesting that investors have gained renewed optimism about Chinese stocks. Despite having my reservations, I share investors&rsquo; current sentiment as I believe China&rsquo;s leading emerging market status provides it with an edge, meaning systematic support is likely.



Although highly lucrative at times, Chinese stocks can face severe drawdowns due to opaque government policies, unconsolidated industries and fierce sectoral competition. As such, I decided to embark on a journey to find three undervalued Chinese stocks with asymmetrical upside potential. Methodologically, my screening process emphasized fundamental aspects, valuation metrics and technical analysis. Moreover, I assessed the prevailing market sentiment to ensure alignment.



If you&rsquo;re as bullish about Chinese stocks as I am, then here are three worth considering.



<h2>Alibaba (BABA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/baba1600h-300x169.jpg" alt="Zombies and Bears Beware, Alibaba Stock Will Still Defeat You!"><div>Source: Shutterstock</div></div>Alibaba&rsquo;s (NYSE:<a href="https://investorplace.com/stock-quotes/baba-stock-quote/">BABA</a>) stock looks like a classic &ldquo;buy the dip&rdquo; opportunity, whereby a divergence between the company&rsquo;s fundamentals and stock performance has occurred. 



BABA stock has shed about 10% of its market value in the past twelve months. Nevertheless, Alibaba&rsquo;s operating performance remained robust. For example, it recently surpassed its fourth-quarter revenue estimate by <a href="https://seekingalpha.com/pr/19723781-alibaba-group-announces-march-quarter-2024-and-fiscal-year-2024-results?hasComeFromMpArticle=false">$256.74 million</a>, proving its secular value proposition.



Furthermore, Alibaba&rsquo;s segmental growth remains intact. As communicated by its fourth-quarter results, Alibaba&rsquo;s e-commerce segment grew by an additional <a href="https://seekingalpha.com/news/4105667-alibaba-group-in-charts-e-commerce-and-logistics-business-revenue-maintains-yy-double-digit-growth-in-fq4">45.1%</a> year-over-year (YoY), while its logistics segment advanced by 29.8%. The aforementioned segments comprise a hefty part of Alibaba&rsquo;s revenue mix, providing a reasonable basis to conclude that Alibaba&rsquo;s growth story remains intact.



It must be known that BABA stock isn&rsquo;t a risk-free asset. The company faces numerous challenges, such as trade disputes between the Eastern and Western parts of the world. Additionally, Alibaba&rsquo;s operating profit margin of <a href="https://finance.yahoo.com/quote/BABA/key-statistics/">8.5%</a> seems quite narrow. Nevertheless, given the above-mentioned factors, I think BABA stock presents a buying opportunity, especially as it currently possesses a forward price-to-earnings (P/E) ratio of merely 8.91x!



<h2>PDD Holdings (PDD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/pdd1600-300x169.png" alt="Man holding a mobile with PinDuoDuo (PDD) logo at horizontal composition."><div>Source: Freer / Shutterstock.com</div></div>You&rsquo;ve come to the right place if you&rsquo;re looking for a diversified e-commerce player with proven results. PDD Holdings&rsquo; (NASDAQ:<a href="https://investorplace.com/stock-quotes/pdd-stock-quote/" target="_blank">PDD</a>) e-commerce portfolio functions in critical end markets, including agriculture, food and beverages, household appliances and apparel, to name a few. Although debatable, I believe the firm&rsquo;s broad end-market exposure presents an abundance of synergies, allowing for sustainable top-line growth and cost structure improvements.



PDD Holdings is a firm favorite at Goldman Sachs. The bank <a href="https://www.sahmcapital.com/news/content/pdd-stock-soars-as-goldman-sachs-upgrades-stock-on-improved-temu-economics-2024-05-24" target="_blank">recently upgraded</a> the stock to Buy from its previous Hold rating based on PDD Holdings&rsquo; resilient revenue growth and comprehensive unit economics. I agree with Goldman&rsquo;s stance. In fact, the company&rsquo;s unitary efficiency is echoed by PDD stock&rsquo;s return on common equity (ROE) ratio of <a href="https://finance.yahoo.com/quote/PDD/key-statistics/" target="_blank">46.3%</a>.



Furthermore, PDD Stock&rsquo;s capital markets-based prospects look in good shape. For instance, PDD stock has a price-to-earnings-growth ratio of only 0.52x, suggesting it is a growth-at-a-reasonable price (GARP) opportunity. Additionally, PDD stock&rsquo;s relative strength index (RSI) is hovering in the low <a href="https://seekingalpha.com/symbol/PDD/momentum/performance" target="_blank">40s</a>, adding substance to a bullish argument from a technical vantage point.



<h2>TAL Education Group (TAL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/06/education1600b-300x169.jpg" alt="GNS stock: a child in front of a laptop taking notes while viewing an online class"><div>Source: Shutterstock</div></div>TAL Education Group (NYSE:<a href="https://investorplace.com/stock-quotes/tal-stock-quote/">TAL</a>) is one of the pioneers of online education in China. The company was founded in the early <a href="https://www.forbes.com/companies/tal-education-group/#:~:text=The%20company%20was%20founded%20by,is%20headquartered%20in%20Beijing%2C%20China.">2000s</a>, but it only sprung to life recently amid a boom in technological uptake among primary and secondary school learners. 



Even though it has embedded risks, key indicators suggest that TAL stock is an excellent buy after declining by approximately 15% in the past six months. For example, the company recently delivered a telling fourth-quarter earnings report that communicated <a href="https://seekingalpha.com/news/4093825-tal-education-non-gaap-epads-of-008-beats-by-006-revenue-of-4296m-beats-by-451m">$429.6 million</a> in revenue, a 59.7% year-over-year increase. Moreover, TAL maintains a strong cash position of around $3.3 billion, allowing it to scale its capacity in the following years.



Lastly, TAL stock has a price-to-sales ratio of <a href="https://finance.yahoo.com/quote/TAL/key-statistics/">4.4x</a>, which I deem low, given the company&rsquo;s illustrious growth and its exposure to an industry set to expand at an annualized rate of <a href="https://www.technavio.com/report/k-12-online-education-market-industry-in-china-analysis">15.65%</a> until 2028.



After considering its salient features, I conclude that I am bullish about TAL stock&rsquo;s prospects!



On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;
<div>Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for cross-asset research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary &ndash; University of London. Furthermore, Steve obtained his CFA Charter on April 26, 2024, and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve&rsquo;s articles on InvestorPlace don&rsquo;t constitute financial advice. However, they form an interesting juxtaposition between mainstream opinion and objective theory, allowing readers to benefit from unbiased commentary. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/the-3-most-undervalued-chinese-stocks-to-buy-in-july-2024/">The 3 Most Undervalued Chinese Stocks to Buy in July 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Most Undervalued Chinese Stocks to Buy in July 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Death cross stocks &ndash; on the surface, the title sounds incredibly menacing. However, it may be one of the more misunderstood concepts. By the end of this short introduction, you&rsquo;ll view this indicator in a more nuanced manner.



Simply put, the death cross signal flashes when a shorter-term moving average (typically the 50-day moving average) slips below the longer-term average (usually the 200 DMA). What it indicates is that more recent price action has been volatile compared to the longer-running dynamic. Some might reasonably assume that this is a signal to avoid the impacted equities. However, they could also be contrarian stocks.



Established publicly traded enterprises tend to follow an ebb and flow; that is, they cycle through periods of undervaluation and overvaluation. The death cross is really saying that the pricing is below historical averages (relatively undervalued). So long as the fundamentals are robust, these death cross stocks should be contrarian upside opportunities.



<h2>CoreCivic (CXW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/06/cxw-stock1600-300x169.png" alt="Sign for privately owned Core Civic Detention Center in Otay Mesa, where San Diego County's illegal immigrants are held as they go through the legal process."><div>Source: Simone Hogan / Shutterstock.com</div></div>I&rsquo;m going to be upfront: I didn&rsquo;t like private-prison operator CoreCivic (NYSE:<a href="https://investorplace.com/stock-quotes/cxw-stock-quote/">CXW</a>) following the disastrous Republican response to this year&rsquo;s State of the Union address. President Joe Biden &ndash; while flubbing a few lines &ndash; seemed, well, presidential. That aura quickly faded though, when, Biden suffered what may be a catastrophic first debate. To reference the memes, it certainly seems like it&rsquo;s &ldquo;Joe-ver.&rdquo;



The market didn&rsquo;t respond well to CXW stock last month, sending it into the weeds. Following the debate, sentiment started to pick up significantly. However, in the technical charts, CoreCivic is about to incur the &ldquo;dreaded&rdquo; death cross. Fundamentally, I would view this as a contrarian indicator. Again, sentiment has picked up.



In addition, the Republicans have an easy road to the White House. One of former President Donald Trump&rsquo;s key agendas is immigration: no more undocumented workers. The harsh crackdown that is about to happen may bode well for CoreCivic&rsquo;s business. It&rsquo;s an ugly thing to say, I get it. However, it&rsquo;s the reality. Thus, CXW ranks among the death cross stocks to consider.



<h2>Medtronic (MDT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/mdt-stock-1-300x169.jpg" alt="Medtronic (MDT) sign outside office building representing healthcare stocks"><div>Source: JHVEPhoto / Shutterstock.com</div></div>One of the top medical device firms, Medtronic (NYSE:<a href="https://investorplace.com/stock-quotes/mdt-stock-quote/">MDT</a>) specializes in a wide range of advanced solutions, from implantable cardiac pacemakers to insulin pumps for the purposes of diabetes management. While relevant, that alone won&rsquo;t guarantee anything on the Street. MDT finds itself down about 6% year-to-date and 10% down in the past 52 weeks. Technically, it&rsquo;s one of the death cross stocks.



However, speculators may want to give Medtronic a second look. In terms of the financials, it&rsquo;s doing alright. In the past four quarters, the company posted an average earnings per share of $1.30. During the period, analysts anticipated an average EPS of $1.25. The performance yielded an earnings surprise of 4.48%.



Attractively, MDT stock now trades at 3.21X trailing-year sales. Between the first quarters of 2023 and 2024, this metric stood at 3.53X. Also, MDT trades at 14.37X forward earnings. In contrast, the prior year&rsquo;s average stood at 15.82X.



Experts see modest growth in both earnings and sales for the current fiscal year and the next. Thus, MDT is one of the contrarian stocks to consider.



<h2>Block (SQ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/sq-1600-300x169.jpg" alt="Block logo over a background with former square logo. SQ stock."><div>Source: Sergei Elagin / Shutterstock</div></div>Financial technology (fintech) giant Block (NYSE:<a href="https://investorplace.com/stock-quotes/sq-stock-quote/">SQ</a>) needs no introduction. Formerly known as Square, Block primarily serves small businesses with its payment processing equipment and systems. This facilitation enabled small companies to compete more effectively with their larger peers. However, pressures against the consumer economy have negatively impacted SQ. So, it&rsquo;s just on the verge of becoming one of the death cross stocks.



However, SQ stock has rocketed higher in recent sessions. So, it might be possible for Block to escape the label. Either way, Block seems like an opportunity since it&rsquo;s still trading at a heavy discount relative to levels seen in 2021. With another Trump administration possibly imminent, this raises questions about broader business viability. Still, conservative leadership could be good for cryptocurrencies, one of Block&rsquo;s product offerings.



Also, consider that the market prices Block at only 21.69X forward earnings. In the prior year, Wall Street accepted a valuation of 30.47X. So, SQ has room to grow. That&rsquo;s enticing because analysts see expansion of the bottom line to $3.48 EPS, a near doubling from last year. Also, sales could see a 15% boost to $25.21 billion. So, we could be looking at one of the contrarian stocks.



<h2>Hormel (HRL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/hrl-1600-300x169.png" alt="Hormel Foods Logo shown on a laptop screen behind a phone screen also showing the logo. HRL stock."><div>Source: viewimage / Shutterstock</div></div>Let&rsquo;s get into some of the riskier (but potentially more rewarding) ideas among death cross stocks, starting with Hormel (NYSE:<a href="https://investorplace.com/stock-quotes/hrl-stock-quote/">HRL</a>). As a food processing company, you&rsquo;d expect Hormel to perform well. During periods of inflation and high borrowing costs, consumers may look to save money. That means more of the consumer budget may go toward the grocery aisle (as opposed to fancy restaurants).



Unfortunately, that narrative hasn&rsquo;t exactly panned out well for HRL stock. Since the beginning of January, HRL is down more than 4%. In the past 52 weeks, it&rsquo;s off the pace by over 20%. Even in the past five years, HRL has gone nowhere except down, losing 24%. Still, it&rsquo;s possible that the bulls may have drawn a line in the sand back in February.



Technically, that may have been the bottom. Whatever the case, the market prices HRL stock at only 1.43X trailing-year sales. In the prior year, this metric landed at 1.62X. Also, its forward price-earnings (PE) ratio is 18.45X, lower than the prior year&rsquo;s average of 21.39X.



Over the next two years, analysts call for slow but steady expansion in the top and bottom lines. Thus, keep it on your radar of contrarian stocks.



<h2>Iovance Biotherapeutics (IOVA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/biotechnologyepzm1600-300x169.png" alt="OLK Stock. Modern Medical Research Laboratory: Two Scientists Wearing Face Masks use Microscope, Analyse Sample in Petri Dish, Talk. Advanced Scientific Lab for Medicine, Biotechnology. Blue Color. KZR stock. RSLS stock. Best Biotech Stocks to Buy"><div>Source: Gorodenkoff / Shutterstock.com</div></div>A commercial-stage biotechnology firm, Iovance Biotherapeutics (NASDAQ:<a href="https://investorplace.com/stock-quotes/iova-stock-quote/">IOVA</a>) develops and commercializes cell therapies for the treatment of metastatic melanoma and other solid tumor cancers. On the surface, Iovance appears incredibly relevant. As stated earlier, though, relevance alone offers no guarantees of market success. Due to losses extending back to early 2021, IOVA is about to become one of the death cross stocks.



That might not be as bad as it may sound to those unfamiliar with the indicator&rsquo;s nuances. For one thing, IOVA stock has enjoyed some strong sessions recently. Also, as InvestorPlace contributor Joel Lim mentioned, Iovance <a href="https://investorplace.com/2024/07/3-under-10-biotech-stocks-that-could-make-you-rich/">features two drugs in the market</a> and additional compelling therapeutic candidates in clinical trials. I wouldn&rsquo;t sleep on this idea.



Another consideration is analysts&rsquo; expectations. For fiscal 2024, they&rsquo;re targeting a loss per share of $1.38, which is a significant improvement from last year&rsquo;s $1.89 in the red. In the following year, Iovance could whittle the loss down to 73 cents per share.



However, the big catalyst could be revenue of $153.92 million in 2024, which is a gargantuan leap from last year&rsquo;s $1.19 million. So, keep IOVA on your list of contrarian stocks.



<h2>Kura Sushi USA (KRUS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/sushi1600-300x169.jpg" alt="Two rolls of sushi on a platter."><div>Source: Shutterstock</div></div>Niche restaurant Kura Sushi USA (NASDAQ:<a href="https://investorplace.com/stock-quotes/krus-stock-quote/">KRUS</a>) is an enticing idea if you like to speculate. First, Americans really love their sushi but there&rsquo;s a problem. It takes time to prepare &ndash; well, at least the good ones do. So, waiting for your sushi and other entrees is a hassle. Enter Kura. Basically, your sushi and other food items are rolling along a conveyer belt. You pick what you want.



Of course, you can special order certain items and these can be whisked directly to your table. The beauty of Kura&rsquo;s business model is that people can start eating right away while they wait for their favorites. That might actually save time for the restaurant operators: people get fuller quickly and leave the table. And that opens up a table for the next guest(s).



However, Wall Street hates KRUS stock, sending it down more than 21%. Maybe prospective investors are getting KRUS mixed up with Kura Oncology (NASDAQ:<a href="https://investorplace.com/stock-quotes/kura-stock-quote/">KURA</a>). Stranger things have happened. Whatever the case, Kura the restaurant trades for 2.61X sales. In the prior year, this metric clocked in at 4.7X.



Analysts are looking for fiscal 2024 sales to hit $236.89 million. That&rsquo;s up 26.4%, making KRUS one of the contrarian stocks to consider.



<h2>TAL Education (TAL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/online-education-1600-300x169.jpg" alt="a child takes notes while attending an online class. represents education stocks. edtech stocks"><div>Source: Travelerpix / Shutterstock.com</div></div>You&rsquo;ve come this far for compelling death cross stocks so let&rsquo;s end on a good one with TAL Education (NYSE:<a href="https://investorplace.com/stock-quotes/tal-stock-quote/">TAL</a>). Falling under the education and training services industry, TAL is incredibly relevant. It offers K-12 afterschool tutoring services, leveraging the latest technologies and tools, such as artificial intelligence and mobile apps. However, it&rsquo;s based in China and that&rsquo;s where things get squirrely.



Because many questions hang over the health of the Chinese economy &ndash; particularly with its consumer ecosystem &ndash; the concept of an afterschool tutoring service may seem superfluous; that is, households may be tempted to axe it from the budget. TAL stock is down more than 15% YTD, providing some weight to the concerns.



Fundamentally, though, the <a href="http://aare.edu.au/data/publications/2006/wan06122.pdf">Chinese culture values education</a>. Further, China is locked in a geopolitical competition with the U.S. and major western powers. Education is the way for the next generation to get ahead and that ultimately makes TAL stock a viable investment.



Analysts agree and this is why I&rsquo;m excited about the idea: they view TAL as a <a href="https://www.tipranks.com/stocks/tal/forecast">unanimous strong buy</a>. Also, their average price target of $17.78 implies almost 78% upside potential. It doesn&rsquo;t get much better than that.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/7-death-cross-stocks-that-could-be-contrarian-buys/">7 &#8216;Death Cross&#8217; Stocks That Could Be Contrarian Buys</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

7 'Death Cross' Stocks That Could Be Contrarian Buys

TAL Education Q1 2025 Earnings Preview

TAL Education Non-GAAP EPADS of $0.05, revenue of $414.2M

TAL Education Group (TAL) Q1 2025 Earnings Call Transcript

TAL Education Group (TAL) has released an update. TAL Education Group reported a significant improvement in its first quarter financial results for...

TAL Education Group's Earnings Soar in Q1

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Grid Dynamics Holdings (GDYN – Research Report), I...

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TAL Education Group to Announce Fourth Quarter and Fiscal Year 2024 Financial Results on April 25, 2024

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