For Investors, It Pays to Skip School Stocks

For its current fiscal year, the company projected student growth this fiscal year of about 10% and has been impacted by the tougher government standards. Last year enrollments grew by 11% after growth of 45% in 2010 and 70% in 2009.

3. ITT Educational Services(ESI)

Company profile: ITT Educational, with a market value of $1.5 billion, is a for-profit post-secondary education provider serving more than 88,000 students at its ITT Technical Institute and Daniel Webster College. It has 126 campuses and four learning centers in 38 states.

Investor takeaway: Its shares are up 5% this year, but have a three-year, average annual decline of 17%. Analysts give its shares three "buy" ratings, two "buy/holds," nine "holds," and two "sells," according to a survey of analysts by S&P.

For fiscal 2012, analysts expect it will earn $7.96 per share, and earnings will decline 6% next year to $7.51 per share.

2. DeVry(DV)

Company profile: DeVry, with a market value of $2 billion, is a diversified for-profit education company offering undergraduate and graduate programs in business and technology fields, and health-care.

Investor takeaway: Its shares are down 16 % this year and have a three-year, average annual loss of 10%. Analysts give its shares six "buy" ratings, three "buy/holds," and nine "holds," according to a survey of analysts by S&P. For fiscal 2012, analysts estimate it will earn $3.52 per share and that earnings will decline 3% next year to $3.43 per share.

S&P has it rated "hold," saying that "recent regulatory matters and negative publicity about for-profit educators have started to hurt (its) new student enrollments (and those at nearly all of its peers), and we see this continuing for a while."

1. Apollo Group(APOL)

Company profile: Apollo, with a market value of $4 billion, is one of the world's largest for-profit education companies, with 350,000 students enrolled in its University of Phoenix. The company offers classes online and at its learning centers in nearly 40 states and internationally.

Investor takeaway: Its shares are down 35% this year and have a three-year, average annual decline of 19%. Analysts give its shares three "buy" ratings, six "buy/holds," nine "holds," and one "weak hold," according to a survey of analysts by S&P.