Apollo Group: S&P Intraday Laggard - TheStreet



) --

Apollo Group


was the worst-performing stock in the

S&P 500

Tuesday morning.

The S&P rose 0.9 points, or 0.06%, Tuesday morning to 1,417.41.

Shares of Apollo declined 8.1% to $39.70. The stock was


to neutral from outperform by Credit Suisse on Tuesday.

The educational program company reported Monday second-quarter net income of $63.9 million, or 51 cents a share, a swing from a year-earlier loss of $64 million, or 47 cents. The earnings trounced analysts' expectations. But revenue fell 7.5% to $969.6 million as enrollments dropped by 8%.


new-degree enrollment

increased 1% in the second quarter from the prior year.

Apollo shares are nearing the 52-week low of $37.12, which was established on Oct. 4. The stock's 52-week high of $58.29 was set on Jan. 17.

Apollo has an estimated price-to-earnings ratio for next year of 11.78 times; the average for specialized consumer services is 14.55. For comparison,



has a lower forward P/E of 10.10;

Education Management's


forward P/E is 15.

Eleven of the 19 analysts who cover Apollo rated it buy; eight analysts gave the stock a hold rating.

TheStreet Ratings

gives Apollo a B- grade with a buy rating and


price target. The stock has fallen 25.86% year to date.

-- Written by Alexandra Zendrian

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Alexandra Zendrian