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→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Jul 24, 2026· older than 90 days
Scholastic Corporation (SCHL) Stock Analysis
Range Bound setup
Communication Services · Publishing
Sell if holding. Engine safety override at $38.55: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 22%; Elevated put/call ratio: 7.40; 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 $38.55: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 22%; Elevated put/call ratio: 7.40; Below-average business quality. Chart setup: RSI 47 mid-range, Bollinger mid-band. Score 4.1/10, moderate confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 44d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
Recent developments
updated Oct 21, 2026Recent Developments — Scholastic Corporation
Latest news
- NEWS Scripps Howard Fund Celebrates 2 Millionth Book Milestone at Scholastic Book Fair — fiscal.ai Oct 21, 2026 positive
- NEWS Is Scholastic Corp (SCHL) Overvalued After Q1 Earnings Miss? GF - GuruFocus — GuruFocus Sep 24, 2026 negative
- NEWS Scholastic stock plunges 12% on worse-than-expected Q1 results - finance.yahoo.com — finance.yahoo.com Sep 24, 2026 negative
- NEWS Scholastic stock plunges 12% on worse-than-expected Q1 results - Yahoo Finance — Yahoo Finance Sep 24, 2026 negative
- NEWS Why is Scholastic stock tumbling today? - Investing.com — Investing.com Sep 24, 2026 negative
Latest item Oct 21, 2026 · Generated 2026-11-03T12:09:33Z.
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. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers
Revenue shrinking — -3.9% YoY. Growth thesis broken unless recovery story develops.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 $38.55: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 22%; Elevated put/call ratio: 7.40; Below-average business quality. Chart setup: RSI 47 mid-range, Bollinger mid-band. Prior stop was $36.27. Score 4.1/10, moderate confidence.
Analyst target $32.73 reached (−15.1% from $38.55); no take-profit level is published. Prior stop was $36.27. Stop-loss: $36.27.
Target reached (-15.1% upside); Quality below floor (3.7 < 4.0).
Scholastic Corporation trades at a P/E of 27.1 (forward 17.8). TrendMatrix value score: 5.9/10. Verdict: Sell.
6 analysts rate SCHL, with a consensus score of 2.2/5. 2 analysts publish price targets averaging $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.