YCHART OF THE DAY: For-Profit Education Stocks’ Explosive 2012; Be Careful
Shares in Corinthian Colleges (COCO), Career Education (CECO), ITT Educational Services (ESI) and Strayer Education (STRA) have all been rockets so far this year. Left behind have been competitors Apollo Group (APOL), DeVry (DV), Washington Post (WPO) and Educational Management (EDMC). The industry has largely beaten back efforts by the Obama Administration to toughen regulation and make companies more accountable for the billions in federal loans and grants that account for most of revenue. Now, they’re fighting for a potentially-somewhat-smaller enrollment pool. Quarterly results will matter greatly until a new pecking order is sorted out.
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