Many people believe investing in your own education is the greatest decision you can make in life. So is it smart to invest in education companies in 2021? While your academic growth is widely considered one of your most valuable assets, not many investors look to for-profit education companies as possible investment opportunities.

Why Is It Smart to Invest in Education Companies?

American society today is built around innovation, technology and creativity. For-profit education businesses stand for exactly that. This is why these companies are now seen as viable investments. Below is a list of five impressive education companies. Each of these companies is on the rise for a variety of reasons, such as…

• Innovation: Are these companies setting new standards in education and higher learning, providing tools and resources that are having an immediate impact?
• Technology: Are these companies creating and utilizing the latest and greatest technologies in the field today?
• Creativity: Are these businesses not only providing the latest and greatest techniques in education, but also branching out and expanding rapidly?
• Closing Gaps in Education: Are these companies closing the gaps that have hindered American education in the past?

In past years, many investors have steered clear of education stocks due to the political climate and other less-than-favorable circumstances. However, this trend is changing quickly as many education companies have made great strides forward recently.

Chegg

Chegg (NYSE: CHGG) is an educational tech company out of Santa Clara, California. Founded in 2005, it’s seen rapid growth since 2014, bringing in $321.08 million in revenue in 2018.

The company has made a name for its textbook exchange, where you can rent, buy and sell your expensive textbooks with ease and at lower costs. Textbooks remain the primary piece in the business model, but the company also provides online tutoring, help finding internships and much more. Chegg currently has more than 3 million subscribers with steady growth over the past five years.

K12 

K12 (NYSE: LRN), based in Herndon, Virginia, provides an online curriculum for more than 104,000 students. It currently operates in 33 states and works primarily with public schools.

Public school systems across the country are struggling to provide proper academic opportunities for young people. It’s becoming more difficult for students to receive effective lessons.

In fact, the student-to-teacher ratio is heading in the wrong direction. According to the Public School Review, the national average for the 2019-2020 school year is 16 to 1, steadily rising from a ratio of 15.3 to 1 in 2008.

This is where K12 can truly make a difference. Its online curriculum model provides personalized lesson plans for students to maximize their educational growth.

Bright Horizons Family Solutions

When you begin to invest in education companies, some will stand above the rest. Bright Horizons Family Solutions (NYSE: BFAM) is one of those companies. Bright Horizons is an early education and childcare company based in Massachusetts. They provide backup care, early education and pre-school services with more than 1,082 centers in 41 states and Canada.

Revenue alone grew 8% to $502 million in the first quarter of 2019. Moreover, earnings grew 12%.

This business hid in the shadows before gradually growing in the early 1990s. However, it’s beginning to make its mark in childcare and early education.

Career Education 

With headquarters in Illinois, Career Education (Nasdaq: CECO) is currently operating American InterContinental University and Colorado Technical University. It also provides post-secondary education for more than 35,000 students at college campuses across the country.

This company struggled for years, but after re-vitalizing the programs they offer, Career Education is on the rise again. Earnings surged 40% in the first quarter of 2019. Revenue also benefitted, growing 7%.

GSX Techedu

Are you looking to invest in a relatively new company? If so, GSX Techedu (NYSE: GSX) became public this past June.

GSX is a Beijing-based after-school tutoring company in China. It also provides K-12 online classes that cover everything from foreign languages to specific interest courses such as biology and geography.

Revenues during the first quarter of 2019 reached $40 million. This is an increase of 437% from the previous year. There isn’t much data behind this stock so far, but it’s on an uptrend and one to look out for.

Invest In Education Companies That Inspire You

Academic growth is one of the key pillars to success in America today. That is why it might be a great idea to invest in education companies that are inspiring young people to be passionate about their studies.

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While one investment can change your life, so can your education. You can invest in education companies that share the same values and utilize the greatest advancements in the world today. And although these values are important, be sure to always do your own research on company fundamentals before investing.