CHGG
HoldBargain BinAI concernChegg, Inc. · Consumer Defensive · United States · $78M cap · $465K/day traded
$0.6971 -4.5% · close 28 Oct · scored 29 Oct
Bargain Bin: Looks like a bargain; the quality and the trend say why it is in the bin.
As of 29 Oct 2026, MoatMap's StockRank for Chegg, Inc. (CHGG) is 46/100, ranked against 24,000+ stocks in 35 markets (Quality 42, Value 73, Momentum 24, each scored against its sector).
Does StockRank work? Each month we publish how every decile did, whichever way it went. See the record →
Chegg's core homework-help subscription business has been in structural decline since generative AI chatbots began offering similar answers for free, and the market value has shrunk to about $81M. Management is now pivoting towards 'employability' services, and the shares fell about 15% on the Q2 2026 call. Repaying the convertible notes in full removes a near-term solvency worry, and a buyback is active. However, the original product's demand is being substituted rather than cyclically weak, and the new strategy is unproven.
The ranks quoted here are from the day it was written; today's Quality, Value and Momentum are the bars above.
ABOUT CHEGG, INC.
Read
Chegg, Inc. is a leading direct-to-student learning platform that provides digital study tools, textbook rentals, and online tutoring services. The company's competitive moat is anchored by its massive, proprietary database of millions of step-by-step homework solutions and expert Q&A, which creates high switching costs and strong brand loyalty among students. It is currently focused on integrating advanced artificial intelligence capabilities to enhance its personalized learning assistant and expand its global subscriber base.
FINANCIAL SUMMARY (USD)
| Year | 2022 | 2023 | 2024 | 2025 | CAGR | TTM | 2026E | Fwd CAGR |
|---|---|---|---|---|---|---|---|---|
| Revenue | 766.9M | 716.3M | 617.6M | 376.9M | -21.1% | 265.5M | 198.0M | -47.5% |
| EPS | 2.09 | 0.16 | -8.10 | -0.96 | -92.3% | -0.48 | — | — |
| Shares | 126.5M | 102.8M | 104.9M | 111.0M | -12.2% | 111.0M | — | — |
| Debt | 1.2B | 617.9M | 504.5M | 69.0M | -61.4% | 50.7M | — | — |
| Equity | 1.1B | 944.6M | 193.0M | 119.6M | -52.5% | — | — | — |
| Op CF | 255.7M | 246.2M | 125.2M | 15.5M | -60.7% | 10.0M | — | — |
| Inv CF | 104.9M | 268.7M | 11.3M | 282.3M | — | — | — | — |
| Fin CF | -744.8M | -852.8M | -109.1M | -428.5M | — | — | — | — |
No clear trend: not near its 52-week low, and not in a steady uptrend.
Swung more than 96% of stocks we rank over the past year (106% a year).
How this is worked out
StockRank judges the business. The price check reads only the chart: it is the price side of the Momentum score, in words.
The rules: Still falling is a new 52-week low in the last two weeks, at least 25% below the high. Finding a floor is no new low since. Turning up is 20 or more trading days without a new low, at least 10% off it, and back above a rising 50-day average. In an uptrend is above the 200-day average and within 15% of the high.
In 2,112 US drawdowns since 2001, buying while the price was still falling was followed by a further 20% drop 42% of the time. Waiting for a turn like this one cut that to 33%, at about 7% higher prices and with no better returns. Part of that cut is simply not buying: 13% of falls never turned, and waiting kept those out. Among turns that were bought, 38% still fell another 20%, and 33% of turns were followed by a new low within six months. The benefit was largest in crashes such as 2008 and 2020.
What it measures: day-to-day price moves over the past year, as a yearly figure, ranked against every stock we cover. Very calm under 20% a year, Calm 20 to 30%, Average 30 to 40%, Bumpy 40 to 55%, Very bumpy above that.
What we found: across about 13,500 stocks in 34 markets (2002 to 2025), past swings were a good guide to the next year's, and bumpier stocks fell further. How much further changed too much between eras to put a number on it.
Calm is not safe: a calm stock can still slide steadily.
Rules fixed before any data was fetched. Describes the chart, not a recommendation.
SCORE BREAKDOWN
FUNDAMENTALS
SECTOR PEERS
Closest peers in Consumer Defensive, ranked by industry match, size, and score similarity. Cross-listings of CHGG are excluded.
| Ticker | Company | Mkt Cap | StockRank | Signal |
|---|---|---|---|---|
| CHGG | Chegg, Inc.(you) | $78M | 46 | Hold |
| LGCY | Legacy Education Inc. | $131M | 55 | Hold |
| SKIL | Skillsoft Corp. | $54M | 30 | Sell |
| FC | Franklin Covey Co. | $233M | 31 | Sell |
| KLC | KinderCare Learning Companies, Inc. | $210M | 12 | Strong Sell |
| APEI | American Public Education, Inc. | $893M | 63 | Hold |
| LINC | Lincoln Educational Services Corporation | $688M | 21 | Sell |
| COUR | Coursera, Inc. | $1.5B | 25 | Sell |
| UTI | Universal Technical Institute, Inc. | $1.2B | 15 | Strong Sell |
| MH | McGraw Hill, Inc. | $2.8B | 65 | Hold |
Peer medians: ROE 10.0% · P/E 21.8x · Gross margin 34.5%
Company Deep Dive
Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.