SEEKING ALPHA: These 3 For-Profit Education Stocks Could Be Beaten Down Gems

Career College Central Summary:

  • For-profit education stocks are in disfavor with many investors because of bad practices by a few companies that relied on feeding at the trough of federal student loan dollars.
  • Some of these companies are worth a second look, especially those that are diversifying their business models.
  • Online education expansion, global growth, and new target enrollments and degree programs should help transform the industry.
  • Heavy institutional support and analyst optimism indicate a bright future for some of these names.
  • Individual investors may want to wise up when it comes to for-profit education stocks – smart Wall Street money is keeping big positions in their shares as the industry transforms itself for the 21st century.
  • For-profit education stocks have been roundly ripped and dismembered in the mainstream media in recent years for not delivering up promised value, and in some cases for feeding off of federal student loan programs.
  • These companies' brick-and-mortar campuses started shedding enrollments a few years ago. Some of the players – plagued by high dropout rates — attracted plenty of bad press for encouraging sub-par students who never graduated to go into debt.
  • On top of that, some of the for-profit education schools attracted Congressional disfavor after it was shown their business models depended on getting hundreds of millions of dollars in Title IV funds, even while many of their former students defaulted on their federal loans.
  • But that was then and this is now.

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SEEKING ALPHA

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