Technical Education Stocks Surge Over 20% in 2025 – The Silent Outperformers of the Market

While most investors have been laser-focused on AI, semiconductors, and megacap tech names, one of the most surprising outperformers of 2025 comes from an unexpected corner of the market: postsecondary, career-oriented education. This overlooked segment—comprised of institutions offering practical, skills-based training—has quietly outpaced broader market indices and drawn increasing attention from savvy investors.

Strong Year-to-Date Returns Across the Board

So far in 2025, several of the leading publicly traded technical education providers have delivered double-digit gains. Lincoln Educational Services ($LINC) has jumped 51%, Adtalem Global Education ($ATGE) is up 45%, Universal Technical Institute ($UTI) rose 37%, American Public Education ($APEI) added 36%, and Perdoceo Education ($PRDO) climbed 28%. All five stocks are outperforming the broader market and most sector ETFs, highlighting strong relative strength within this niche.

What’s Driving the Rally?

This rally is underpinned by structural shifts in the U.S. labor market. There’s a growing shortage of skilled workers in areas such as auto tech, industrial repair, healthcare, and skilled trades. Simultaneously, many younger Americans are turning away from expensive, traditional four-year college degrees in favor of shorter, more affordable programs that lead directly to employment. Federal support, workforce development funding, and a renewed appreciation for vocational education have all helped fuel investor enthusiasm for these companies.

Technical Breakouts and Relative Strength

From a technical analysis perspective, the sector is showing clear signs of strength. All five of the aforementioned stocks have broken through key resistance levels and are trading in upward channels. These are classic signals of relative strength—often used by momentum investors to identify sectors with continued upside potential. The bullish setups across multiple charts suggest this rally has legs.

Short-Term Surge or Long-Term Trend?

The real question is whether this is a short-term trade or a sustainable secular trend. The current macro environment points toward the latter. As automation and demographic shifts reshape the economy, demand for technical talent is expected to rise steadily. Companies that can scale their programs and adapt curricula to real-world needs may find themselves in a long-term growth trajectory, both operationally and in the eyes of investors.

Bottom Line: An Undervalued Opportunity

With every stock in the group gaining more than 20% year-to-date, it’s clear this sector is no longer flying under the radar. The combination of labor market tailwinds, shifting student preferences, and supportive public policy has created fertile ground for these businesses to thrive. Investors looking for differentiated exposure beyond traditional sectors may find long-term value in these underappreciated education names.