Two Undiscovered “Schools Partially Reopening” Winners

As I told you in yesterday’s edition of Trade Talk Tuesdays, I’ll be coming out with a special AMA (ask me anything) issue next week.

If you have a question for me, here’s your chance to ask it!

Nothing is off the table – so ask away!

Just click on the video link above – and then post your question in the comments section of the Carvana video. And next week, I’ll do my best to answer it.

And just like that, you’ll be YouTube famous. (Kidding, obviously!)

In the meantime…

We’re starting to get a ton of great questions – one of which I’d like to share with you today.

It comes from Rudy S…

“With schools going partial in the fall, are there any home nanny or daycare stocks out there?”

Good idea, Rudy – but I don’t know of any publicly traded ways to capitalize on any nanny or daycare plays.

However… I do believe there’s a better way to put us ahead of this upcoming trend.

As schools reopen, partially reopen or don’t reopen at all, there’s an opportunity to pick up on the next trend shift.

It comes from the two stocks revealed below…

Arco Platform (Nasdaq: ARCE) is a company that provides educational content to private schools, students, teachers, administrators and parents. Its expected earnings growth rate for the next year is more than 100%, and Zacks ranks them as a “No. 1 Strong Buy” (whatever that means).

Chegg (NYSE: CHGG) is a direct-to-student learning platform that allows students to find human help through a network of live tutors. Its expected earnings growth rate for the current quarter is 26.7%.

Action Plan: Clearly, both companies are benefiting from the status and uncertainty of school attendance this fall.

As these are two pure plays in the educational shift we see occurring, it might be a good idea to establish a small “starter” position in each name. Of the two, I happen to like the Chegg chart pattern better.

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