Education & Training Stock Picks (LRN, ESI, DV, UTI, APOL)
We think so. Education & Training has been a huge laggard in 2012, much like the Homebuilders were in recent years. However, the "Homies" have been tearing it up in 2012 - and the Housing Market hasn't even fully recovered yet.
Here are our picks: K12, Inc. (LRN), ITT Educational Services Inc. (ESI), DeVry, Inc. (DV), Apollo Group Inc. (APOL), Universal Technical Institute, Inc. (UTI).
New regulations regarding for-profit schools and increased scrutiny have taken a toll on enrollment and revenue in the Education & Training industry.
In spite of that, fundamentally, these stocks are looking pretty good. You might get laughed out of a job interview if your degree is from the DeVry Institute, but DV did 2.09B in sales last year, and is expecting Brazil to drive its growth in the next year. DV is also on track with plans to cut costs companywide to save at least $50 million in fiscal 2013. Others in the sector are doing the same.
It may not be time to buy right this second, but it would behoove you to add these names to your radar. It's just a matter of time until we see a short squeeze as the sector recovers.
|Ticker||Company||Price||Float Short||Performance (Year)|
|ESI||ITT Educational Services Inc.||38.38||29%||-39%|
|APOL||Apollo Group Inc.||29.6||17%||-34%|
|UTI||Universal Technical Institute, Inc.||12.75||3%||-5%|
Best of the Blogs
Scanning and identifying the best blog entries every hour
- 5 Things To Ponder: Ascending Contingencies | ZeroHedge
- BURN IN HELL: OIL IS RUNNING LIKE A MAD LION NOW | iBankCoin.com
- The Raging “Currency Wars” Across Europe | Financial Sense
- Greeks Turn to Gold on Bank Bail-in and Drachma Risks | ZeroHedge
- What Do They Know? Why Are So Many Of The Super Wealthy Preparing Bug Out Locations? | ZeroHedge
- Top 10 Wall Street Rookie Mistakes | ZeroHedge
- ECB Threatens Athens With Bank Funding Cutoff If No Deal In One Month: February 28 Is Now D-Day For Greece | ZeroHedge
The most relevant financial news and articles from the Internets
- Kanye West explains how marriage has helped him become a better man | Business Insider
- IBM is giving its CEO a big bonus again despite the company's tumbling stock... | Business Insider
- Sturridge strikes on Reds return while United go third | Business Insider
- S&P 500 Recoups Losses as Mixed Earnings Fuel Volatility | TheStreet.com
- The Best Business Schools of 2011 | BusinessWeek
- This software could be better at hiring than any human | Business Insider
- How to remember people's names | Business Insider