Weak Job Market Lifts Lincoln: Under the Radar

WEST ORANGE, N.J. (TheStreet) -- In a tough job market, many people seek additional training to help them compete. Lincoln Educational Services(LINC Quote) serves this market with courses in everything from culinary arts to automotive repair.

Shares of West Orange, N.J.-based Lincoln have climbed 76% in the past year, outperforming those of larger rivals DeVry(DV Quote) and Apollo Group(APOL Quote), which have each gained more than 24%. We rate Lincoln "buy" because of its strong financial position and room for growth.

While DeVry and Apollo, which owns the University of Phoenix, are more well known, Lincoln offers investors a better way to tap into the education market. With a price-to-earnings ratio of 13, Lincoln shares are cheaper than those of Apollo at 14 and DeVry at 15.

Lincoln offers classes in cosmetology, car repair and skilled trades at its 43 campuses. It emphasizes career training instead of traditional university studies, making it a logical option for workers looking for practical instruction.

The company's second-quarter earnings climbed fivefold to $7.4 million, or 27 cents a share. Revenue jumped 51% to a record $128 million. Lincoln is scheduled to report third-quarter results on Nov. 5.

The good times for Lincoln don't have to stop when the job market comes back to life. As the market advances, the company's information technology courses can help workers gain more skills to be viable candidates in any job market.

DeVry and Apollo prove that for-profit education can be very lucrative. Consider Lincoln another way to cash in as people invest in their careers.