In this article, we discuss 10 best education stocks to buy in 2023. If you want to see more stocks in this selection, check out 5 Best Education Stocks To Buy In 2023.
In 2022, the worldwide market for higher education was valued at $20.1 billion, and it is predicted to grow at a compounded annual growth rate of 20.2% during the period from 2023 to 2028, reaching $61.1 billion. Additionally, the online education sector is projected to expand by $148.22 billion between 2022 and 2027, with a CAGR of 9.49% during the forecasted timeframe.
The education and training expenditure worldwide is anticipated to hit $10 trillion by 2030, fueled by population growth in developing markets and technology, which drives a significant expansion of re-skilling and up-skilling in developed economies. Over the next ten years, there will be around 350 million more post-secondary graduates and nearly 800 million additional K12 graduates compared to the present day. This expansion is primarily driven by Asia and Africa. To meet global demand, there is a requirement to add approximately 1.5 million teachers each year, leading to a total of around 100 million teachers. Half of these teachers will be responsible for Pre-K and Primary education. Post-secondary teaching will also undergo significant expansion.
The higher education market is experiencing growth due to a rise in student enrolments worldwide, as well as an increase in globalization. Additionally, companies seek individuals with specialized degrees to adapt to technological advancements, and artificial intelligence and the internet of things are being integrated into higher education systems to enhance personalized learning. The digitization of the education sector, consumers’ increased spending capacity, and government scholarship programs are all contributing to the market’s positive growth. The availability of high-speed internet connectivity and personal computing devices has led to the introduction of collaborative and e-learning solutions, which is expected to further fuel the higher education market in the future.
To benefit from the boom in the education sector, some of the best education stocks to buy this year include Chegg, Inc. (NYSE:CHGG), TAL Education Group (NYSE:TAL), and New Oriental Education & Technology Group Inc. (NYSE:EDU).
We scanned Insider Monkey’s database of 943 hedge funds and picked top 10 companies that provide services in the education sector with the highest number of hedge fund investors. These are the best education stocks to buy according to hedge funds.