EDU Should I Buy
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New Oriental Education & Technology Group Inc (EDU) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. Despite strong financial performance and positive analyst ratings, the technical indicators suggest a bearish trend, and there are no significant positive catalysts or trading signals to support an immediate purchase.
The MACD is negative and expanding, indicating a bearish trend. RSI is neutral at 22.663, and moving averages are converging, showing no clear direction. The stock is trading near its S1 support level of 55.509, with resistance levels at 58.393 and 61.277. Overall, the technical indicators suggest a bearish sentiment.
Hedge funds have significantly increased their buying activity, with a 1163.91% increase over the last quarter. Analysts have raised price targets, with BofA increasing its target to $71.30 and HSBC upgrading the stock to Buy with a $68 target. The company reported strong financial growth in Q2 2026, with revenue up 14.71% YoY and net income up 42.34% YoY.
The stock has shown a consistent downward trend, with a -2.07% regular market change and a -1.31% post-market change. Technical indicators are bearish, and there are no recent news catalysts or significant insider trading trends. Additionally, the stock is expected to decline further in the short term, with an 80% chance of a -2.24% drop in the next month.
In Q2 2026, the company demonstrated strong financial performance with a 14.71% YoY increase in revenue to $1.19 billion, a 42.34% YoY increase in net income to $45.45 million, and a 50% YoY increase in EPS to 0.03. Gross margin also improved to 53.26%, up 2.38% YoY.
Analysts are bullish on EDU, with BofA raising the price target to $71.30 and HSBC upgrading the stock to Buy with a $68 target. Both firms cited strong financial performance and raised EPS estimates for FY26 and FY27.
