New Oriental Education & Technology Group Inc. (EDU) is being touted as a good defensive stock to add to investment portfolios at the moment, according to a recent article on Insider Monkey. The company, which operates as a provider of educational services in China, has seen its stock price rise steadily over the past year despite challenges in the market.
One of the key reasons behind EDU’s resilience as a stock is its positioning in the education sector, which is generally considered recession-resistant. As the demand for education remains strong, especially in countries like China where the population values education highly, companies like EDU are able to maintain steady revenues even during economic downturns.
Additionally, EDU has been adapting well to the digital transformation of the education sector, offering online courses and services to cater to the growing trend of e-learning. This flexibility has helped the company navigate the challenges posed by the COVID-19 pandemic and continue to serve its students effectively.
Investors looking for a defensive stock to add to their portfolios may find EDU an attractive option due to its stable performance and growth potential in the education sector. With its strong market position in China and strategic focus on digital education, EDU is well-positioned to weather any future economic uncertainties.
In conclusion, New Oriental Education & Technology Group Inc. (EDU) is a solid choice for investors seeking a defensive stock with growth potential in the education sector. As the company continues to innovate and adapt to changing market conditions, it remains a strong contender for long-term investment success.
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