Cart (0)
business newsOne For-Profit Education Upgrade; More to Come?
The sector has taken a huge hit recently, but more upgrades could lift the entire sector on increased optimism.
PRINT
 |
|
Major research firm RBC upgrades Corinthian College (COCO) to Outperform. That is the news, announced today. What really interests traders and investors, of course, is whether there are more upgrades to follow.
For-profit educational institutions have taken a huge hit recently. Regulatory uncertainty lingers for these institutions, causing both confidence and stock price to fall. Experts predict stricter regulation within the sector, particularly regarding debt and loan repayment.
As traditional universities have increased tuition enormously in the last decade, it was the prime environment for for-profit institutions to emerge, with their ability to offer significantly lower tuition rates. However, on average, the stock price for companies within this sector has fallen 20% in 2010. Is this the end of for-profit educational institutions? Probably not, although it may be the end for some.
Will the upgrade of Corinthian College bolster confidence in the sector? With this news, some traders may expect upgrades of other for-profit institutions. If this happens, the entire sector may be lifted on increased optimism. This would make current price dips attractive entry points on the market overreaction. Regardless of the outcome, it will be interesting to see how the for-profit education sector performs in the coming weeks and months, especially if regulation is enacted for these institutions.
Below, find some more great ETF and market content from Benzinga:
Ford’s Alan Mulally: “We Continously Improve Every Year”
By Louis Bedigian
Three Stocks to Consider Selling in 2011
By Gary Cassady
Investing in the New Borders
By Gary Cassady
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
