Buy Scholastic Corp.

You may be familiar with Scholastic Corp. (SCHL), the children’s publisher, education and media company. The stock has had an interesting stretch recently. SCHL reported earnings on March 20 that fell shy of analysts’ expectations, so the report was not too warmly received by the Street. At the same time, volatility in the market increased, so the stock got choppier. It slipped from $36 to $34, and we have a chance to pick it up at the lower end of that range.

With the stock trading near support levels, I like it here. The company has gone through cost-cutting and paid down debt in the last year, which should help it financially. And broadly speaking, content is valuable right now, and Scholastic is a leader in its niche.

Buy a 2% position in SCHL under $33. This is lower volume stock with a wider spread between the bid and ask prices, so I recommend you use a limit order to get it at our price.