GOTU Stock Analysis: Buy, Sell, or Hold?
GOTU - Gaotu Techedu Inc. American Depositary Shares, three of which representing two Class A Ordinary Shares
$2.20
-0.05 (-2.22%)
▼
5d:
-1.79%
30d:
-9.84%
90d:
-23.08%
HOLD
MODERATE Confidence
Last Updated: February 3, 2026
Earnings: Feb 25, 2026
21d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: GOTU shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: GOTU shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$3.27
Based on 7.0% avg growth
INTRINSIC VALUE TODAY
$2.03
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 8.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: GOTU is currently trading at $2.20, which is considered oversold relative to its 30-day fair value range of $2.24 to $2.50. The stock's valuation (Forward PE: 8.1) is in line with its historical norms (8.4). Remarkably, the market is currently pricing in an annual earnings decline of 1.2% over the next few years. This pessimistic expectation contrasts with the company's recent 103.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, GOTU is in a strong downtrend. The price is currently testing key support at $2.21. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: GOTU has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Implied Volatility is high (74th percentile), indicating expensive options premiums. This environment often favors selling options or covered calls to generate income. Wall Street analysts see significant upside, with an average price target of $3.73 (+65.7%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, GOTU is in a strong downtrend. The price is currently testing key support at $2.21. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: GOTU has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Implied Volatility is high (74th percentile), indicating expensive options premiums. This environment often favors selling options or covered calls to generate income. Wall Street analysts see significant upside, with an average price target of $3.73 (+65.7%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$2.24 -
$2.50
Company Quality Score
56/100
(HOLD)
Options IV Signal
74th percentile
(EVENT RISK)
Volume Confirmation
HIGH
Confidence Score
46.2%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Options expensive (IV 74th percentile)
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 65.7% below Wall St target ($3.73)
Fair Price Analysis
30-Day Fair Range
$2.24 -
$2.50
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$0.30
(13.7%)
Support & Resistance Levels
Support Level
$2.21
Resistance Level
$2.39
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
8.09
Wall Street Target
$3.73
(+65.7%)
Revenue Growth (YoY)
30.7%
Earnings Growth (YoY)
103.2%
Profit Margin
-6.4%
Valuation Discount vs History
-1.2% cheaper
PE vs Historical
8.1 vs 8.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.2%
(market-implied from PE analysis)
1-Year Target
$2.22
(-1%)
2-Year Target
$2.20
(-2%)
3-Year Target
$2.17
(-4%)
3-Yr Target (if PE normalizes)
(PE: 8→8)
$2.25
(+0%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 8.1 to 8.4
Stabilization Target:
$2.34
(+3.8%)
PE Expansion Potential:
+3.8%
Last updated: February 03, 2026 12:57 PM ET
Data refreshes hourly during market hours. Next update: 1:57 PM
Data refreshes hourly during market hours. Next update: 1:57 PM
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Technical Signals Check
Is GOTU showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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