2-Star Stocks Poised to Plunge: Corinthian Colleges?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Corinthian Colleges (Nasdaq: COCO) has received a low two-star ranking.

With that in mind, let's take a closer look at Corinthian and see what CAPS investors are saying about the stock right now.

Corinthian facts

Headquarters (Founded)Santa Ana, Calif. (1995)
Market Cap$213.7 million
IndustryEducation services
Trailing-12-Month Revenue$1.6 billion
ManagementChairman/CEO Jack Massimino
CFO Robert Owen
Return on Equity (Average, Past 3 Years)3.1%
Cash/Debt$72.5 million / $149.0 million
CompetitorsApollo Group
DeVry
ITT Educational Services

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 20% of the 367 members who have rated Corinthian believe the stock will underperform the S&P 500 going forward.

Just this past summer, one of those bears, fellow Fool Justin Loiseau (TMFJLo), succinctly summed up the underperform case for our community: "Accreditation scares, lawsuits, and a close shave with the '90/10' federal financial aid rule are enough to make me confident that [Corinthian] is going to fail. Abysmal graduation rates ... will also hurt this company in the long run."

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