Top Education Stocks to Watch According to BMO Capital Markets

Investing.com -- The education sector presents unique investment opportunities, particularly in specialized segments like healthcare education and workplace childcare.

BMO Capital Markets has identified several standout performers that are navigating industry challenges while positioning for growth.

These companies have demonstrated resilience and strategic vision in their respective educational niches, making them worthy of investor attention.

Get premium news and insight, AI stock picks, and deep research tools by upgrading to InvestingPro - get 55% off today

Adtalem Global Education (ATGE) - Adtalem has successfully transformed itself into a focused medical and healthcare education provider through strategic acquisitions and divestitures.

The company is capitalizing on favorable supply/demand dynamics in healthcare education, despite increasing competition in this space.

Its "Growth with Purpose Initiative" is delivering results by accelerating enrollment growth across its educational portfolio while simultaneously expanding profit margins.

BMO analysts believe the recent stock sell-off was an overreaction, creating an attractive entry point for investors interested in the healthcare education segment.

Adtalem Global Education reported first-quarter fiscal 2026 results that surpassed analyst estimates for both revenue and earnings. The company also completed a $150 million share buyback and authorized a new $750 million repurchase program.

Bright Horizons (BFAM) - As a dominant player in the worksite childcare sector, Bright Horizons benefits from strong secular growth trends.

Companies increasingly offer childcare benefits to attract and retain talent, particularly to support women in the workforce. While the pandemic severely impacted operations through center closures and reduced on-site workers, the company is steadily recovering.

Though center-based volumes are improving, occupancy remains below pre-pandemic levels. The company’s high-margin backup care business continues to be a significant growth driver for Bright Horizons.

In recent developments, Bright Horizons Family Solutions announced third-quarter 2025 financial results that exceeded expectations, driven by strong performance in its Back-Up Care business.

Grand Canyon Education (LOPE) - Grand Canyon Education’s primary partner, Grand Canyon University (GCU), successfully weathered pandemic challenges and has seen increased ancillary revenues from sources like room and board as students returned to campus.

While online competition intensified during the pandemic, this pressure has eased as traditional universities refocus on their core campus offerings.

The company’s Orbis division, which helps universities add healthcare programs, faced constraints during the pandemic due to clinical rotation limitations. However, enrollment began growing again in 2024, a trend BMO expects to continue.

Grand Canyon Education reported third-quarter 2025 earnings that met analyst expectations and announced that its Board of Directors approved a $300 million increase to the company’s stock repurchase program.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.