Uncovering the Hidden Gem: John Wiley & Sons Stock Soaring Under the Radar

Are you tired of hearing about the same big-name stocks on Wall Street? Looking for a hidden gem that could potentially bring you great returns? Look no further than John Wiley & Sons (NYSE:WLY). This publishing company, best known for its For Dummies series of books, has been quietly soaring this year, with its stock price up 27% to around $40 per share.

What’s driving this growth, you ask? Well, for starters, John Wiley & Sons is in the midst of a reorganization and streamlining process. By divesting non-core businesses and focusing on its core strengths in Research and Learning, the company is setting itself up for future success. The recent sale of its University Services and Wiley Edge businesses, with plans to divest its CrossKnowledge unit next year, shows a commitment to efficiency and strategic focus.

In its latest earnings report, John Wiley & Sons beat expectations, despite a decline in revenue due to the divestitures. The company also managed to cut costs significantly, which bodes well for its bottom line. The Learning segment, in particular, has been a strong revenue driver, with a notable project for training GenAI large language models contributing to an 18% revenue increase in the fourth quarter.

Looking ahead to fiscal 2025, John Wiley & Sons is optimistic about its growth prospects. With low- to mid-single-digit revenue growth expected, along with increased adjusted earnings and free cash flow, the company is poised for continued success. Analysts have set a consensus price target of $50 per share for the stock, representing a 22% upside potential from its current price.

With a relatively low P/E ratio of 14 and a strong growth outlook fueled by its reorganization efforts and AI initiatives, John Wiley & Sons is a stock worth keeping an eye on. Don’t let this under-the-radar gem pass you by – consider adding it to your investment portfolio for potential long-term gains.