This Google-Assisted AI Stock Targets Yet Another Breakout

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It’s no secret that artificial intelligence continues to weave its way even deeper into more industries. Now Adtalem Global Education (ATGE) — a leading provider of health care education — has partnered with Hippocratic AI to train health care professionals on the use of this blossoming technology.

And as Adtalem looks to break out to yet another record high if the market cooperates, it offers timely lessons on how to read stock charts and perform targeted stock analysis.





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Adtalem Teams Up With Google, Hippocratic AI

Based in Chicago, Adtalem aims to shape the future of health care through its range of academic programs aligned with industry needs. With nearly 10,000 employees and its network of institutions, Adtalem serves more than 90,000 students. It has a community of about 350,000 alumni.

In September, Adtalem joined forces with Hippocratic AI to advance health care education using artificial intelligence. Hippocratic AI is building the first large language model that focuses on safety for health care.

Through the collaboration, Adtalem aims to integrate nurses’ practical experience with the advanced capabilities of artificial intelligence. The goal is to equip health care professionals with the essential skills to effectively and ethically utilize AI tools in patient care, bridging the gap between technology and clinical practice.

Note that at the Google Cloud Next conference in May, Adtalem’s chief customer officer, Steven Tom, shared examples of Adtalem’s AI journey. He highlighted Adtalem’s AI-powered digital human and its collaboration with Google on an AI-powered tutor named “Julian” — one of the first large-language-model applications in higher education.

Tom also noted how Adtalem’s use of artificial intelligence has evolved beyond Julian to a broader strategy of supporting students with innovative experiences and technologies.


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AI Angle And Healthy Growth Drive Demand

Adtalem sports a Composite Rating of 97 out of a best-possible 99, earning it a spot alongside fellow leaders Stride (LRN) and Universal Technical Institute (UTI) in the Consumer Services-Education group.

Over the last three quarters, Adtalem has delivered average earnings growth of just under 35%. Its three-year average earnings-per-share growth rate is 37%.

For fiscal 2025’s first quarter, ended Sept. 30, the company posted a 39% year-over-year earnings increase to $1.29 per share. For the full fiscal year, analysts expect an 18% gain to $5.89 per share.

On the sales front, Adtalem generated revenue of $417.4 million, a 13% rise over the prior-year quarter. Over the last three years, the company has driven average sales growth of 14%.

Positive Diagnosis For Adtalem Stock

Healthy and steady growth undergirds demand for Adtalem stock. Shares boast a B Accumulation/Distribution Rating and a strong 1.7 up/down volume ratio. Plus, 37 funds with an A+ or A rating from IBD have a position.

These and other metrics — all available in IBD Stock Checkup — provide an unbiased diagnosis covering both fundamental and technical analysis.

A look at the stock chart for Adtalem provides an even deeper analysis of the S&P 600 Midcap Index member.

Adtalem Stock Poised To Pop — Again

Since its low in February 2022, Adtalem soared as much as 385% before notching an all-time high in November. Along the way, the stock formed multiple bases and weathered periods of tumultuous volatility.

Viewed on a weekly chart, Adtalem reset its base count in February. The reset came when the stock undercut the low in a flat base it had broken out of in January.

As it continued to rise from this fresh start, Adtalem mostly found support along its 10-week moving average, a sign of institutional support. Also note the sharply rising trajectory of that 10-week benchmark.

Adtalem went on to form new patterns, including its current flat base with a buy point at 92.93. Prior to Wednesday’s sharp drop in the Nasdaq, the stock had been teasing that entry in the first-stage base on a weekly chart. But Adtalem felt that market pressure, losing support at its 21-day exponential moving average but holding solidly above the 50-day.

After rising nearly 3% Thursday then slipping Friday, the stock closed the week above 10-week line and 6% shy of the 92.93 buy point.

While relative strength has dipped as the latest flat base formed, it remains within striking distance of a fresh 52-week high. Such market leadership — combined with steady growth, strong ratings and clear demand — could mean Adtalem stock is poised to keep climbing. Much will depend on how the market indexes fare as the Nasdaq retakes its 21-day line to close out the week.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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