Do Education Stocks Get an A+?

Investing in an education is always a good investment in yourself. But are education stocks a good investment for your portfolio? Traditionally in tough economic times the private education companies do well as as workers look to enroll in classes to upgrade their skills.

Apollo Group (APOL) is the biggest company in the sector. The company is the parent of the University of Phoenix, which is the largest private university in the U.S. In January, Apollo reported fiscal first-quarter earnings were up 29% and easily beat analysts' estimates. Revenue jumped 24%.

Some other names in this sector that have been performing well of late are Strayer Education, Inc. (STRA), New Oriental Education (EDU), Learning Tree International (LTRI), and DeVry (DV).

Shares of private education companies are also getting a boost on reports the stimulus bill proposed by House Democrats included provisions increasing federal student loans. The stimulus bill proposed in the House of Representatives would increase unsubsidized Stafford student loan limits by $2,000 and increase funding for Pell Grants by $15.6 billion over two years, increasing the maximum grant by $500 to bring it to $5,350 from $4,850.

There are some that say these stocks have plenty of room to head higher from here. Others believe the move is over and there is nothing but downside from here.

So the question for the class is, do eduction stocks have a place in your portfolio? Please write your comments below.

by Mark Anderson |  01/29/09  |  Stocks: APOL, CAST, CECO, COCO, CPLA, DV, EDU, EPAX, ESI, LINC, LTRE, MMS, NLCI, STRA, UTI,