#7 - Chegg (NYSE:CHGG)
For millions of American students and parents, remote learning was a reality this spring. And while it’s looking more likely that students at all educational levels will return to the classroom this spring, the pandemic did showcase that digital learning is already in place. And that’s the case for Chegg (NYSE:CHGG).
Chegg is a pioneer in connected learning. The company has a new platform that will become the standard for virtually all U.S. high school and college classrooms over the next ten years. Chegg allows students to access on-demand resources, including e-textbooks, homework solutions, online tutoring, test preparation, writing help, etc.
It’s a one-stop-shop for academic resources. And it’s all digital. While not all students will want to learn this way, a fair amount will. And that’s where the story gets fascinating for investors. Chegg operates in a small niche of approximately 3 million high school and college students today. However, the company projects that it will reach all 36 million students in 10 years.
More subscribers will bring more revenue. And more revenue means larger profits and an increase in the share price.
About Chegg
Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.
More- Current Price
- $1.50
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 6 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $4.50 (201.0% Upside)
If there’s anything the recent run in the market is reminding us of, and it’s that the market is forward-looking. And right now, the market is projecting that the economy will recover. But what does that have to say about the market not only for the rest of 2020 but for the next decade?
Investors that bought Netflix in 2010 would be delighted (mostly) in 2019. Streaming content and cutting the cord was one of the megatrends of the past decade that came to pass. Of course, other trends like the impeding marijuana boom have not quite panned out yet.
In this presentation, we’ve given you seven stocks that should pass the test of the next ten years. Not surprisingly, many of these stocks are in the technology sector, but not just technology in the broad sense, but technology in a way that will impact consumers and businesses in the next decade.
And all of these businesses pass a key test that is attributed to Warren Buffett. That is, invest in what you know. These companies have business models that are easy to understand and should give you confidence as investors.
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