For Investors, It Pays to Skip School Stocks
S&P has a "sell" rating on its shares as it says it finds them "overvalued" given the regulatory pressures the company and the industry faces. S&P expects revenues to decline 13% this fiscal year (ending in August) and another 8% in fiscal 2013, following a 4% drop in fiscal 2011.
For fiscal 2012, analysts estimate it will earn $3.36 per share and that that will decline by 4% to $3.21 next year. The Yacktman fund owned 2.1% of its shares at the end of the first quarter, the largest of any mutual fund.