This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

For-Profit Education Stocks: Which Will Outperform in 2011?

(2011 education stocks poll updated with Strayer Education's warning of a 20% drop in student enrollment.)

NEW YORK ( TheStreet) -- Stocks in the for-profit education sector fell 24%, on average, in 2010, even as the S&P 500 ( ^GSPC) rebounded around 12.8%.

Top industry players like Corinthian Colleges (COCO), Apollo Group (APOL) and Strayer Education (STRA) offered dismal 2010 returns in the negative high double-digit percentage range.

Thus, investors should remain cautious as 2011 gets underway with enrollment growth visibility cloudy, at best, along with the overhang of regulatory uncertainty following the Obama administration's recently proposed rules that cover everything from restricting incentive-based recruiting practices, the need for new job-training courses and taking action against schools which fail to advertise honestly to requiring schools to notify students of graduation and job placement rates.


Strayer Education was the latest education stock to report of declining student enrollment .

Strayer said late Friday that new student enrollments across its campus and online education system decreased by 20% for the 2011 winter term, which began Jan. 3, even as continuing student enrollments increased by 10%.

That led Piper Jaffray analyst Peter P. Appert to slash his price target on Strayer Education shares by $17 to $119, maintaining a neutral rating on the stock.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WPO $699.00 -1.24%
APEI $25.72 0.00%
BPI $9.56 0.00%
CPLA $53.67 0.00%
LOPE $42.40 0.00%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.11 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs