NEW YORK (TheStreet) -- Every great teacher understands that a student, despite his or her personal obstacles, will rise to the level of expectations. But recently, for-profit education companies such as Apollo Group (APOL) and Strayer (STRA) have suffered due to high demands and stricter government regulation.
Despite DeVry's strong fundamentals, which includes zero debt, while also being one of the best in the sector in year-over-year revenue performance, there is persistent negativity among those who cover the sector and insist on painting all of the companies with the same brush.
We can debate the extent of the government's involvement and whether the Gainful Employment rule has gone overboard. However, I don't believe that this process, which is critical to protecting the federal investment in our students, diminishes the importance of for-profit education and the role that they can still play in the education future of the U.S. This service will always be in demand.
Likewise, as with good teachers with high expectations, good investors should dive head first into these stocks. If my suspicions are correct, in four years, several of these for-profit names, especially DeVry and Apollo, will graduate at the head of their class. At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.