This Day On The Street
Continue to site
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

5 Stocks at Risk of Falling off the Fiscal Cliff

Analysts see Raytheon's sales shrinking 1% in 2012 and again in 2013, to $24.3 billion. Yet that may just be the start of even bigger declines. Note that the Defense Department has nearly doubled in size since 2001, and a 10% to 20% reduction in size over the coming decade is a real possibility, fiscal cliff or not.

Budget hawks in the Republican Party, coupled with national security doves in the Democratic Party, may increasingly look to form an unusual alliance in a bid to finally address our nation's pernicious budget deficits, and the likes of Raytheon and General Dynamics may be hard-pressed to fight that trend.


DeVry (DV - Get Report) provides a wide range of academic programs, from nursing to accounting to technical degrees. Like many other for-profit schools, DeVry has come under increasing scrutiny in Congress over rising student loan defaults. That's not a banking problem, it's a government problem: 80% of all student loans for DeVry's students are backed up the U.S. government, and a hefty chunk of funding for these loans would be cut from the budget if the fiscal cliff comes to pass. Even if legislators agree to a short-term fix to avoid the cliff, student loan funding looks to be a long-term sacrificial lamb as the government starts to pare back in size.

We may already be seeing the long-term challenges faced by DeVry and others. Enrollment in its various programs this summer is roughly 15% below year-ago levels. And though analysts are currently modeling for a 5% drop in fiscal (June) 2013 revenues to around $1.97 billion, they expect DeVry's revenues to rebound slightly in fiscal 2014.

Fiscal cliff or not, that may be hard to pull off as future government outlays for student loans become more meager.

To see these stocks in action, visit the 5 Stocks at Risk of Falling off the Fiscal Cliff portfolio.


Follow Stockpickr on Twitter and become a fan on Facebook.
Stockpickr is a wholly owned subsidiary of
3 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

Check Out Our Best Services for Investors

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CSC $33.13 0.00%
DV $17.35 0.00%
GD $140.52 0.00%
LIFE $3.56 0.00%
RTN $126.35 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs