Few stocks are poised to benefit from economic woes and rising unemployment. One group, however, that appears to be an exception is for-profit adult education stocks.

These companies, which operate school campuses and online education programs, are viewed by some as beneficiaries of a growing need for worker retraining and the rising demand for education by those changing careers or re-entering the work force as adults.

Leo Fasciocco is a technical expert, specializing in finding stocks that are "breaking out" -- those moving above previous technical resistance levels or poised to do so.

His two of the latest breakout stocks featured in his The Ticker Tape Digest are both in the for-profit education field: Apollo Group (NASDAQ: APOL) and Devry Inc. (NYSE: DV). Here's his assessment.

"Apollo, based in Phoenix, is the largest for-profit education company, with more than 300,000 students. APOL focuses on working adults and operates 259 campuses and learning centers in 40 states, as well as various international locations.

"Programs range from associate to doctorate degrees in areas such as business, education, health care, technology. The company said it is showing solid enrollment growth. Annual revenues are $3 billion.

"The company recently reported that net for the fiscal fourth quarter excluding special items increased 20% to 75 cents a share from 62 cents a year ago. Revenues for the quarter rose 17%. Analysts had expected net of just 64 cents a share. So, results were a positive surprise.

"For fiscal 2009 ending August 31, analysts predict a 17% increase in net to $3.31 a share from $2.84 a year ago. The stock sells with a price-earnings ratio of 20, which is reasonable.

"Institutional sponsorship is very good. Five-star rated Janus Mid Cap Value Fund was a recent buyer of 550,000 shares. Also, 4-star rated GMO US Quality Equity III Fund recently picked up 779,000 shares.

"Devry, based in Oakbrook Terrace, Il., is one of the largest for-profit education companies, with annual revenues of $1.1 billion. DeVry University offers undergraduate and graduate programs in business and technology fields. They account for 77% of revenue.

"Under its health-care segment, Ross University offers medical and veterinarian programs, and Chamberlain College offers nursing degrees.

"Recently acquired schools add allied health programs. Its professional segment offers review courses through its Becker CPA review and Stalla CFA review programs.

"DV's technicals set up surprisingly well. The momentum indicator is strongly bullish. Recent price action shows good institutional buying interest. However, investors should be patient with this stock; we are looking for a key breakout over 58.50 before entering.

"The company tends to show consistently good earnings growth. This fiscal year ending June 30, analysts predict a 22% increase in net to $2.18 a share from $1.78 a year ago.

"The stock sells with a price-earnings ratio of 23, which is reasonable given the earnings growth rate. Looking out to fiscal 2010, the Street projects a 24% gain in net to $2.69 a share.

"The largest fund holder is 5-star rated Baron Growth Fund with a big 5.2% stake. It has held its position steady. A recent large buyer was 5-star rated Hartford Midcap Fund, which purchased 385,000 shares.

"Over the past 2 years shows, DV's stock has appreciated 120%. That easily outperformed the S&P 500 index which declined 25% over the same time. Recent price action shows good institutional buying interest.

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Apollo (APOL) and Devry (DV): Top of the class in adult education originally appeared on BloggingStocks on Mon, 24 Nov 2008 13:42:00 EST. Please see our terms for use of feeds.

One good thing to come out of the softening economy is that working adults may return to school in larger than average numbers to brush up on the latest in-demand job skills. DeVry Incorporated (NYSE: DV) is well placed to provide convenient, affordable, job-related educational opportunities. In its most recent quarter, DeVry's student enrollment grew 10%, it opened two new physical campuses and beefed up its accounting and finance programs.

Revenues for 2Q 2008, announced January 24, increased 16% to $237.7 million, but operating income increased 115% to $46.9 million, while net income increased 118% to $35.8 million, and diluted EPS increased 113% to $0.49.

At a cost of $27.5 million in cash, DeVry recently acquired Advanced Academics, Inc., which provides K-12 online educational opportunieis for the growing cyber-home school segment. DeVry's student loan program is in good shape, a claim not all for-profit educational companies can make.

The stock gained 3.6% on January 31 to close at $55.19, but gave up half that gain on February 1 to close down 1.5% at $54.35, before regaining that decline on February 4 to close at $55.11, up 1.4%. Investors may wish to investigate the for-profit educational sector for possible attractive growth candidates.

DeVry (DV) posts triple digit income increase originally appeared on BloggingStocks on Tue, 05 Feb 2008 13:55:00 EST. Please see our terms for use of feeds.