For Profit Education Stocks Devry, BPI and EDMC Soar to New Highs

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Following yesterday’s dismal start to the month, stocks opened cautiously this morning as traders digested a round of mixed economic reports.

On the upside, unemployment claims dropped for the third time in four weeks, to a seasonally adjusted 422 thousand. But, this number indicates continued weakness in the job market.

Retailers reported weak May sales. Due to rising food and gas prices, many consumers appear to be cutting back on purchasing new clothes and other discretionary items.

Adding to the tenuous economic situation is Greece. With a second bailout package being drafted, Moody’s credit agency raised the country’s default risk by 50%. Greece’s debt rating is now equivalent to Cuba’s.

As such, many stocks are at a standstill this morning.

However, the private education sector is shining, after the Department of Education released a more-lenient-than-expected ruling on gainful employment regulations. Education stocks touching new 52-week highs today, include Education Management (NASDAQ: EDMC), Bridgepoint Education (NYSE: BPI) and Devry Inc. (NYSE: DV).

With disappointing retail numbers, shoe companies are among some of the worst hit stocks today. Jones Group (NYSE: JNY), Brown Shoe Company (NYSE: BWS), and Skechers U.S.A. (NYSE: SKX) are all touching new 52-week lows.

Stocks Hitting New 52-Week Highs

Education Management (NASDAQ: EDMC): Offering a wide range of post-secondary education programs, Education Management operates 93 schools in 28 states. On news of the positive gainful employment ruling, the stock is up approximately 34% so far in morning trading.

Bridgepoint Education (NYSE: BPI): With a wide range of program offerings in Iowa, Colorado and on-line, Bridgepoint is benefiting from the less stringent funding rule.  The stock is up about 10.6% so far this morning.

Devry Inc. (NYSE: DV):  The well-known education company offers a wide variety of programs throughout 94 locations in the U.S. and Canada, as well as on-line. Like many companies in its sector, Devry stock is up strongly on news of today’s ruling, rising 10.3% so far this morning.

Stocks Hitting New 52-Week Lows

Jones Group (NYSE: JNY):  The popular shoe and apparel company which sports exclusive brands like Nine West and Anne Klein announced this morning it has acquired Europe’s largest luxury shoe retailer, Kurt Geiger, for  approximately $350 million. Traders are reacting negatively to the Jones Group news. JNY stock is down so far about -1.4% this morning.

Brown Shoe Company (NYSE: BWS) – The footwear retailer and wholesaler offers a range of dress, casual and athletic shoes under brand names likes Naturalizer, LaSalle and Famous Footwear. So far this morning, Brown Shoe stock is off about -0.7%.

Skechers U.S.A. (NYSE: SKX) – Designs casual, active and lifestyle footwear for men, women and children. Skechers stock is currently down about -0.3% in morning trading.

As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, https://investorplace.com/2011/06/private-education-stocks-soaring-to-new-highs/.

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