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Over the past month, Chinese Omnichannel English Language Training (ELT) service provider Meten Holding Group Ltd. (METX) has rallied 109.7%, after its strategic cooperation agreement with AGM Group Holdings Inc. (AGMH), for developing METX’s crypto mining business. However, the gains may be hard to sustain, given METX’s weak fundamentals. For the fiscal second quarter ended June 30, adjusted net loss came in at $11.73 million, while loss from operations stood at $12.01 million. Selling and marketing expenses increased 8.9% year-over-year to $11.95 million. Furthermore, Street expects its EPS to be negative $0.39 for the next year (fiscal 2022).
So, it could be wise to bet on education and training stocks Adtalem Global Education Inc. (ATGE), Universal Technical Institute, Inc. (UTI), and Lincoln Educational Services Corporation (LINC), which are better positioned to cash in on the industry’s growth and outperform METX.
