PowerSchool Unveils AI-Powered Solutions to Revolutionize Education

How PowerSchool's Latest AI Solutions Could Drive Stock Higher - Lincoln Educational Servs (NASDAQ:LINC), Grand Canyon Education (NASDAQ:LOPE)

PowerSchool Holdings, Inc. PWSC, a leader in cloud-based software for K-12 education, has announced two new AI-driven tools, PowerBuddy for College and Career and PowerBuddy for Custom AI. These tools aim to revolutionize the way students, families, and school districts access and manage information, potentially driving further growth for PWSC stock. PWSC's AI Tools to Transform College and Career Planning PowerBuddy for College and Career helps students take control of their future planning by offering personalized guidance based on their unique needs. This AI assistant uses longitudinal student data to provide real-time responses about career paths, college options, scholarships, and more. With natural language interactions, students can easily access relevant information without wasting time sifting through resources. The assistant is designed to reduce the burden on school counselors, who often manage far more students than recommended. By offering a self-service platform for students to explore postsecondary options, PowerBuddy allows counselors to focus on higher-impact areas of support. PWSC's AI Tools to Enhance School District Efficiency PowerBuddy for Custom AI is designed to streamline how school districts interact with their communities. By providing real-time answers to district-specific queries -- ranging from policy manuals to athletic schedules -- this tool saves both time and effort for families and staff. The AI assistant ensures users receive approved, accurate information from the district's knowledge base, reducing the need for manual searches. Given that only 23% of educators feel partnerships with parents have strengthened since the pandemic, PowerBuddy's ability to improve communication and accessibility could significantly impact school district adoption of PowerSchool's software, boosting the company's growth trajectory and stock appeal. Both PowerBuddy tools are built on PowerSchool's Responsible AI principles, with a strong focus on privacy and security. The company's commitment to secure, efficient, and personalized technology could strengthen PowerSchool's foothold in the education technology space. As districts and schools seek more efficient ways to manage operations and student support, these AI-driven innovations could drive higher adoption rates of PowerSchool's offerings, positively impacting PWSC stock. PWSC Stock Performance Shares of this cloud-based education software provider have gained 8.5% in the past six months against the Zacks Schools industry's 9.1% decline. The company has been benefiting from the continuous strength in the market demand for its suite of mission-critical products, along with its focus on operating leverage. Furthermore, its advanced AI solutions enhancements and opportunities in its market bode well for PWSC's prospects. Image Source: Zacks Investment Research Considering the estimate revision trend, the Zacks Consensus Estimate for 2024 and third-quarter earnings per share of PWSC have trended upward to 90 cents (from 63 cents) and 25 cents (from 18 cents) over the past 60 days, respectively. The estimated figures indicate 9.8% and 4.2% growth, respectively, from the year-ago period's reported levels. Such an uptrend depicts analysts' optimism about the stock's potential. In June 2024, PowerSchool entered into a definitive agreement to be acquired by one of the world's leading private multi-asset alternative investment firms, Bain Capital. The transaction, valued at $5.6 billion, is expected to close in the second half of 2024, subject to customary closing conditions, including regulatory approvals. Although PWSC is set to be acquired, it will continue to remain a standalone company with no interruptions in its business operations and customer service. PWSC Zacks Rank PowerSchool currently carries a Zacks Rank #3 (Hold). Key Picks Here are some better-ranked stocks from the Zacks Consumer Discretionary sector: Stride, Inc. LRN presently carries a Zacks Rank of 2 (Buy). LRN has a trailing four-quarter earnings surprise of 40.3%, on average. LRN shares have gained 31.8% in the past six months. The consensus estimate for LRN's fiscal 2025 sales and EPS implies a rise of 6.3% and 7.7%, respectively, from the year-ago levels. Grand Canyon Education, Inc. LOPE, currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 10.2%, on average. LOPE shares have gained 6.5% in the past six months. LOPE has seen an upward estimate revision for 2024 earnings to $7.98 per share from $7.80 over the past 60 days. This company's earnings for 2024 are expected to register 13.4% growth from a year ago. Lincoln Educational Services Corporation LINC, currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 249.4%, on average. LRN shares have gained 24.5% in the past six months. LINC has seen an upward estimate revision for 2024 earnings to 51 cents per share from 48 cents over the past 60 days. This company's earnings for 2024 are expected to register 4.1% growth from a year ago. To read this article on Zacks.com click here. Market News and Data brought to you by Benzinga APIs

PowerSchool releases new AI tools for education By Investing.com

FOLSOM, Calif. - PowerSchool (NYSE: PWSC), a leading provider of K-12 education cloud-based software, announced the launch of two new PowerBuddy™ AI products: PowerBuddy™ for College and Career and PowerBuddy™ for Custom AI. These products are designed to facilitate connections within school districts and enhance student access to college and career planning resources. PowerSchool states that these tools are built on its Responsible AI principles and are now available for the 2024-2025 school year. PowerBuddy for College and Career is an AI companion that leverages students' longitudinal data to provide individualized guidance for postsecondary planning. It is intended to simplify the process of career exploration by offering personalized support through a conversational interface. This tool aims to help students navigate their options and make informed decisions by considering their GPA, career interests, and other personal goals. One of the key benefits of PowerBuddy for College and Career is its potential to maximize the impact of school counselors. By providing a self-service platform for students, counselors can allocate more time to address complex and individual student needs. This comes in response to a report by the American School Counselor Association highlighting the high student-to-counselor ratios in the United States. PowerBuddy for Custom AI is tailored to streamline the way school districts communicate with their communities. It acts as a real-time AI assistant capable of answering district-specific questions, thereby enhancing access to information and reducing the need for direct inquiries. This tool is also designed to integrate seamlessly into district websites and offers inclusive accessibility features such as speech-to-text and text-to-speech functionality. PowerSchool's 2024 Education Focus Report indicates a need for stronger partnerships between educators and parents post-pandemic. PowerBuddy for Custom AI seeks to address this by offering quick and reliable access to district information, potentially strengthening community engagement. These new PowerBuddy tools represent PowerSchool's continued commitment to enhancing educational outcomes through technology. The company supports over 60 million students globally and provides a suite of products aimed at connecting educational stakeholders. This announcement is based on a press release statement from PowerSchool Holdings, Inc. For further details on PowerBuddy for College and Career, and PowerBuddy for Custom AI, interested parties can refer to PowerSchool's official resources. In other recent news, PowerSchool has made significant strides in its international presence, specifically in Latin America. The company recently announced partnerships that will introduce its AI solutions, PowerBuddy and MyPowerHub, to schools in six Latin American countries. This expansion includes the International School of Tegucigalpa in Honduras and Northridge School Mexico, among others, who have adopted PowerSchool's AI technology to enhance learning and administration. In addition, PowerSchool is set to be acquired by Bain Capital in a deal valued at $5.6 billion. This development has prompted several analyst firms, including Raymond James, Piper Sandler, and Jefferies, to downgrade the company's stock, aligning their price targets with the acquisition price. The transaction is expected to conclude in the second half of 2024, resulting in PowerSchool becoming a private entity. In terms of financial performance, PowerSchool's Q1 revenue was reported at $185.0 million, slightly above consensus, and adjusted EBITDA exceeded expectations by 6.2%. The company has also been integrating AI capabilities into its product offerings, closing deals worth approximately $400,000 and building a pipeline nearing $10 million. These are recent developments in the company's operations. As PowerSchool (NYSE: PWSC) unveils its latest PowerBuddy™ AI tools, investors and stakeholders may be keen to understand the company's financial health and market position. With a market capitalization of $4.65 billion, PowerSchool is a significant player in the education technology space. The company's commitment to innovation is underscored by the introduction of new products aimed at enhancing educational outcomes. InvestingPro data shows that PowerSchool has experienced a revenue growth of 12.79% over the last twelve months as of Q2 2024, reflecting an upward trend in the company's sales. This growth is consistent with the company's efforts to expand its product offerings and market reach. Additionally, the gross profit margin stands at a strong 68.77%, indicating that PowerSchool maintains a healthy difference between the cost of goods sold and the sales revenue. One of the InvestingPro Tips for PowerSchool suggests that the company's net income is expected to grow this year, aligning with analysts' predictions that the company will be profitable within the year. This is a positive sign for investors looking for growth potential in the education sector. On the other hand, it is important to note that PowerSchool is currently trading at a high revenue valuation multiple, which may suggest that the stock is priced optimistically relative to its sales. While the company does not pay a dividend, indicating a reinvestment of earnings back into the company, the relative strength index (RSI) suggests the stock is in overbought territory, which could be a point of caution for potential investors. For those looking for a deeper dive into PowerSchool's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/PWSC, providing further insights into this dynamic company.

PowerSchool Launches Contextual AI Solutions to Transform College and Career Planning, and Streamline Access to District Information

PowerSchool (NYSE: PWSC), the leading provider of cloud-based software for K-12 education in North America, announced today the availability of its latest PowerSchool PowerBuddy™ AI products: PowerBuddy™ for College and Career and PowerBuddy™ for Custom AI. These tools aim to transform how school staff, teachers, counselors, students, families, and the community connect with their school district, while also helping students easily explore and take steps to ensure they are on the right path for college, career, and life success. These AI assistants, designed using PowerSchool's Responsible AI principles, are the latest PowerBuddy products since PowerSchool launched PowerBuddy in January 2024. "At PowerSchool, AI isn't just a feature - it's a cornerstone of our mission to enhance educational outcomes and foster meaningful engagement unlike ever before," said Shivani Stumpf, Chief Product and Innovation Officer at PowerSchool. "Our new PowerBuddy tools represent a significant leap forward in empowering students, families, educators, and counselors with efficient, secure, and personalized access to critical information by providing instant, tailored, and relevant responses through natural language interactions, eliminating the need for time-consuming searches and sifting through an overwhelming amount of information." PowerBuddy for College and Career: Individualized Guidance for Future Success PowerBuddy for College and Career is an AI companion powered by students' longitudinal data to guide them in their postsecondary planning. Designed to engage with students conversationally, PowerBuddy offers personalized support, making career exploration and postsecondary planning simple, accessible, and highly impactful. Students can ask questions to discover their options, understand requirements and next steps specific to their context, and receive tailored guidance on which path is best suited for their strengths and interests, maximizing their academic and professional success. Key Features of PowerBuddy for College and Career: According to a report by the American School Counselor Association, the average counselor in the US is responsible for 385 students - well above the recommended ratio. PowerBuddy for College and Career helps alleviate this burden by empowering students to take control of their futures, allowing counselors to focus on addressing more targeted and in-depth student needs. PowerBuddy for Custom AI: Streamlining District Information Access PowerBuddy for Custom AI redefines how districts interact with their communities and stakeholders by providing a secure, real-time AI assistant that can answer district-specific questions like details from the district website, policy manuals, athletic schedules, after-school programs, student handbooks, school calendars, lunch menus, job postings, and more. The tool simplifies information retrieval, allowing users to access accurate, approved answers from district documentation, reducing the need for time-consuming searches and direct inquiries. District staff can easily manage and update the AI's knowledge base with built-in administrative tools. Key Features of PowerBuddy for Custom AI: According to PowerSchool's 2024 Education Focus Report, only 23% of educators believe the partnership with parents and caretakers has grown stronger since the pandemic. By providing accurate and instant access to information parents need from their districts, PowerBuddy for Custom AI aims to enhance these relationships by providing quick, reliable information access, fostering greater community engagement. For more information about PowerBuddy for College and Career, and PowerBuddy for Custom AI, visit https://www.powerschool.com/blog/heres-whats-new-this-school-year-for-powerschool-powerbuddy-ai-assistants/. About PowerSchool PowerSchool (NYSE: PWSC) is the leading provider of cloud-based software for K-12 education in North America. Its mission is to empower educators, administrators, and families to ensure personalized education for every student journey. PowerSchool offers end-to-end product clouds that connect the central office to the classroom to the home with award-winning products including Schoology Learning and Naviance CCLR, so school districts can securely manage student data, enrollment, attendance, grades, instruction, assessments, human resources, talent, professional development, special education, data analytics and insights, communications, and college and career readiness. PowerSchool supports over 60 million students in more than 90 countries and over 18,000 customers, including more than 90 of the top 100 districts by student enrollment in the United States. Learn more at www.powerschool.com. © PowerSchool. PowerSchool and other PowerSchool marks are trademarks of PowerSchool Holdings, Inc. or its subsidiaries. Other names and brands may be claimed as the property of others.