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Here's How Much a $1000 Investment in Adtalem Global Education Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Adtalem Global Education (ATGE) ten years ago? It may not have been easy to hold on to ATGE for all that time, but if you did, how much would your investment be worth today?
Adtalem Global Education's Business In-Depth
With that in mind, let's take a look at Adtalem Global Education's main business drivers.
Adtalem Global Education Inc. is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services. Since first-quarter fiscal 2022, Adtalem has operated in three reportable segments:
Chamberlain includes the operations of Chamberlain University, founded in 1889 as Deaconess College of Nursing and acquired by Adtalem in 2005. The segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry.
Walden includes the operations of Walden University, which Adtalem acquired on August 12, 2021. The segment offers more than 100 online certificate, bachelor’s, master’s and doctoral degrees.
Medical and Veterinary includes the operations of the AUC, RUSM, and RUSVM, which are collectively referred to as the “medical and veterinary schools”. This segment offers degree and non-degree programs in the medical and veterinary postsecondary education industry.
Home Office and Other include activities that are not related to any reportable segment and are required to reconcile segmental results.
Beginning the second quarter of fiscal 2022, Adtalem eliminated its Financial Services segment when ACAMS, Becker, OCL, and EduPristine were classified as discontinued operations and assets held for sale. On Mar 10, 2022, the company completed the sale of ACAMS, Becker and OCL. On Jun 17, 2022, it completed the divesture of EduPristine.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Adtalem Global Education ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $4,013.12, or a 301.31% gain, as of May 23, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 174.78% and the price of gold went up 162% over the same time frame.
Looking ahead, analysts are expecting more upside for ATGE.
Adtalem posted impressive third-quarter fiscal 2025 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimates by 17.8% and 4.9%, respectively. Both metrics increased year over year by 28% and 12.9%. This upside was backed by strong enrollment growth and higher tuition rates. Also, its focus on strategic initiatives and the efficient execution of the Growth with Purpose strategy is boding well. Total student enrollment rose 9.8% year over year to 94,223 students in the quarter. Owing to the trend of results and favorable aspects, the company raised its fiscal 2025 guidance across revenues and adjusted earnings. Shares of Adtalem have outperformed the industry in the year-to-date period. However, margin pressure in the Medical and Veterinary segment and increased expenses are concerning.
Over the past four weeks, shares have rallied 22.99%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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This article originally published on Zacks Investment Research (zacks.com).
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