Nelnet trades at $128.22 and has moved in lockstep with the market. Its shares have returned 20.9% over the last six months while the S&P 500 has gained 23.8%.
Is there a buying opportunity in Nelnet, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free for active Edge members.
Why Is Nelnet Not Exciting?
We're cautious about Nelnet. Here is one reason you should be careful with NNI and a stock we'd rather own.
EPS Growth Has Stalled Over the Last Two Years
Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.
Nelnet’s flat EPS over the last two years was worse than its 10.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
Nelnet isn’t a terrible business, but it doesn’t pass our quality test. That said, the stock currently trades at 15.9× forward P/E (or $128.22 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're fairly confident there are better stocks to buy right now. Let us point you toward one of our top digital advertising picks.
Stocks We Would Buy Instead of Nelnet
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
