Scholastic's earnings beat streak and imminent catalyst are offset by declining revenue, an elevated growth-adjusted valuation, and a notably negative risk-adjusted asymmetry ratio, consistent with a call to consider reducing the position.
Thesis pillars
- Earnings Catalyst With Beat Streak→Stable
- Declining Revenue→Stable
- Elevated Valuation Vs Growth↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Scholastic Corporation (SCHL) Stock Analysis
Momentum Cont setup
Communication Services · Publishing
Sell if holding. Engine safety override at $39.40: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 18%; Below-average business quality.
Scholastic Corporation (the "Corporation" and together with its subsidiaries, "Scholastic" or the "Company") is the world's largest publisher and distributor of children's books, a leading provider of print and digital instructional materials for grades pre-kindergarten... Read more
Sell if holding. Engine safety override at $39.40: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 18%; Below-average business quality. Chart setup: Trend continuation, RSI 69, MACD bullish. Score 4.2/10, moderate confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 66d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
Recent developments
updated 2026-10-13Recent Developments — Scholastic Corporation
Latest news
- NEWS What To Expect From Scholastic’s (SCHL) Q3 Earnings - tradingview.com — tradingview.com neutral
- NEWS What To Expect From Scholastic’s (SCHL) Q3 Earnings - TradingView — TradingView neutral
- NEWS Scholastic Raises Quarterly Dividend to $0.25 a Share From $0.20, Payable Sept. 15 to Holders of Record Aug. 31 - market — marketscreener.com positive
- NEWS Scholastic raises quarterly dividend by 25% to $0.25/share - MSN — MSN positive
- NEWS Scholastic raises quarterly dividend by 25% to $0.25/share - msn.com — msn.com positive
Generated 2026-10-13T11:52:23Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
4 floor-breakers
Revenue shrinking — -3.9% YoY. Growth thesis broken unless recovery story develops.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $39.40: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 18%; Below-average business quality. Chart setup: Trend continuation, RSI 69, MACD bullish. Prior stop was $36.64. Score 4.2/10, moderate confidence.
Take-profit target: $45.31 (-16.9% upside). Prior stop was $36.64. Stop-loss: $36.64.
Target reached (-16.9% upside); Quality below floor (3.7 < 4.0).
Scholastic Corporation trades at a P/E of 27.2 (forward 17.9). TrendMatrix value score: 6.0/10. Verdict: Sell.
6 analysts cover SCHL with a consensus score of 2.2/5. Average price target: $39.
What does Scholastic Corporation do?Scholastic Corporation (the "Corporation" and together with its subsidiaries, "Scholastic" or the "Company") is the...
Scholastic Corporation (the "Corporation" and together with its subsidiaries, "Scholastic" or the "Company") is the world's largest publisher and distributor of children's books, a leading provider of print and digital instructional materials for grades pre-kindergarten ("pre-K") to grade 12 and a producer of entertaining literary and educational children's media.