Revenues were up 59% in the most recent quarter for this Chinese tutoring company, and eight analysts have increased their EPS estimates in the past 30 days. Our second recommendation is to sell the remaining shares of Weibo.
Buy a Half: TAL Education (TAL)
From Cabot Emerging Markets Investor
TAL Education (TAL) continues to hold near its highs, and that’s enough for us to switch back to a Buy A Half rating—if you’re not yet in, you can start with a half-sized position here. Investors are putting more emphasis on the company’s rapid buildout of its business (revenues have risen 59% or more for six straight quarters) and focusing less on earnings (which are only expected to rise 12% this year due to heavy spending). A bit more strength from TAL and the market could have us buying another half on top of what we own. BUY A HALF.
Paul Goodwin, Cabot Emerging Markets Investor, www.cabotwealth.com, 978-745-5532, May 17, 2018