LGS Preference Period Begins: Investment Opportunity in Education Sector?

The Ministry of National Education (MEB) has announced the results of the Centralized Examination for Secondary Education (LGS), with preference applications set to run from tomorrow until July 27. This process signals an increase in demand for education services, private tutoring institutions, and digital learning platforms. The LGS results, evaluated in a comparison involving approximately 2.3 million students in 2024, align with trends showing up to 12% growth in education spending in previous years. Companies like Digital Education Platforms (DEMO) and Private Tutoring Chains (ODZ) may experience short-term stock price fluctuations. However, the long-term investment potential remains limited, with dividend yields typically ranging between 4-6% and share buybacks being uncommon. While the post-LGS period could see increased investments in private education services and student efficiency technologies, sustainability concerns persist due to budget policies and government support frameworks. The LGS preference phase marks a critical period for both short-term liquidity and long-term strategic investments.