TAL Stock Analysis: Buy, Sell, or Hold?

TAL - TAL Education Group

Services-Educational Services
$12.70
0.00 (0.00%) ▲
HOLD
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Jan 29, 2026 0d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD - EXTENDED: TAL is 7.4% above fair value ($11.82). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$21.74
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$13.50
5.9% Margin of Safety

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 18.5x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: TAL is currently trading at $12.70, which is considered extended relative to its 30-day fair value range of $10.73 to $11.82. From a valuation perspective, the stock is trading at a premium (Forward PE: 21.0) compared to its historical average (18.5). At these levels, the market is pricing in 4.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, TAL is in a uptrend. Immediate support is located at $10.62, while resistance sits at $13.23.

Market Sentiment: TAL has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $14.65 (+15.4%). 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 EXTENDED
Fair Price Range $10.73 - $11.82
Company Quality Score 58/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 55.7%

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All Signals

  • BEARISH: Price extended above range (+7.4% above fair value)
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($14.65)
  • NEUTRAL: Market pricing in 4.4% annual earnings growth - fairly valued

Fair Price Analysis

30-Day Fair Range $10.73 - $11.82
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $10.62
Resistance Level $13.23
Current Trend Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 21.04
Wall Street Target $14.65 (+15.4%)
Revenue Growth (YoY) 39.1%
Earnings Growth (YoY) 128.6%
Profit Margin 6.5%
Valuation Premium vs History +4.4% premium
PE vs Historical 21.0 vs 18.5 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +4.4% (market-implied from PE analysis)
1-Year Target $13.26 (+4%)
2-Year Target $13.84 (+9%)
3-Year Target $14.45 (+14%)
3-Yr Target (if PE normalizes) (PE: 21→19) PE COMPRESSION $12.70 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 30.3%) $29.75 (+134%)
Base: (SPY PE: 21.0, Growth: 30.3%) $28.07 (+121%)
Bear: (PE: 17.9, Growth: 30.3%) $23.86 (+88%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (38x PE), but valuation improves significantly next year (21x PE) as earnings recover.
Trailing PE: 38.04 | Current EPS (TTM): $0.28
Bull Case $23.43 (+85%)
Analyst growth 100.0%, PE expands to 41.8
Base Case $21.30 (+68%)
Market implied 100.0%, PE stable at 38.0
Bear Case $7.24 (-43%)
Severe decline -20.0%, PE contracts to 32.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 5:38 PM ET
Data refreshes hourly during market hours. Next update: 6:38 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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Advanced TAL Option Strategies

Professional options setups generated by AI based on today's TAL price and gamma walls.

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