(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
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.
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