For Investors, It Pays to Skip School Stocks
S&P, which has its shares rated "hold," says "steep loan defaults among its former students and the very high proportion of its students using the government's Title IV loans have put (it) at risk of not complying with government regulations, although (it) recently said it thinks its risks in these areas have been greatly reduced." It also said it thinks Corinthian's enrollment drop has bottomed.
6. Career Education Corp.(CECO)
Company profile: Career Education, with a market value of $464 million, offers everything from certificate programs to doctoral degrees and has over 100,000 enrolled students. It operates more than 90 campuses in the U.S. and other countries.
Investor takeaway: Its shares are down 13% this year and have a three-year, average annual loss of 32%. Analysts give its shares eight "holds" and five "weak holds," according to a survey of analysts by S&P.
S&P has its shares rated "sell," and says its greatest challenge is related to the discovery of improper job rates at some campuses, the concurrent resignation of its president and CEO, and its subsequent receipt of a letter from its accreditor asking it to present reasons why its accreditation should not be suspended. There has yet to be a ruling on that. It's due to release earnings May 1.
5. Strayer Education(STRA)
Company profile: Strayer, with a market value of $1 billion, is a for-profit educator with 92 campuses in 21 states, and serves students in all 50 states and 30 countries through its online programs. It has a wide range of degree programs.
Investor takeaway: Its shares are down 12% this year and have a three-year, average annual loss of 20%. Analysts give its shares one "buy" rating, three "buy/holds," nine "holds," and one "weak hold," according to a survey of analysts by S&P.
4. Bridgepoint Education(BPI)
Company profile: Bridgepoint, with a market value of $1.1 billion, offers associate to doctoral degrees in the areas of business, education, psychology, social sciences, and health sciences. Although it has two campuses, one in Iowa and the other in Colorado, it serves about 99% of its roughly 87,000 students online.
Investor takeaway: Its shares are down 7.4% this year, but have a three-year, average annual return of 22%. Analysts give its shares two "buy" ratings, four "buy/holds," and four "holds," according to a survey of analysts by S&P.