4-Star Stocks Poised to Pop: Bridgepoint Education
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Bridgepoint Education (NYS: BPI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Bridgepoint's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Diego (1999)|
|Market Cap||$1.1 billion|
|Trailing-12-Month Revenue||$852.6 million|
Co-Founder/CEO Andrew Clark
CFO Daniel Devine
|Return on Equity (Average, Past 2 Years)||69.8%|
|Cash/Debt||$288.5 million / $0|
Apollo Group (NAS: APOL)
DeVry (NYS: DV)
Strayer Education (NAS: STRA)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 414 members who have rated Bridgepoint believe the stock will outperform the S&P 500 going forward. These bulls include wazupwiddat and All-Star XMFConnor, who is ranked in the top 10% of our community.
Just last month, wazupwiddat offered three good reasons to look into Bridgepoint:
1) They are growing and will continue to grow, I believe they will exceed 15% in the next 4-5 years.
2) Net Income Margins continue to remain strong at 19% which gives management great flexibility to look for additional growth opportunities.
3) Discounted Cash flows of 15% growth (3% terminal), with a 12% discount ... this stock is way undervalued. I estimate the price should be in $46-$51.
Currently, Bridgepoint even sports a particularly paltry price-to-cash flow ratio of 4.7. That represents a discount to competitors like Apollo (7.0), DeVry (7.3), and Strayer (7.2).
CAPS member XMFConnor elaborates on the bargain opportunity:
[T]he for profit sector had fallen so much due to the scrutiny that any company in the sector, regardless of their exposure to potential regulations, was beaten down just like the rest of them. This created too much selling pressure on the players with the least risk, or the "least bad" in the industry ... such as BPI.
In this way, it was very similar to [Atwood Oceanics], which I bought right after the BP oil spill... all the offshore drillers got hammered, even though only some had exposure. Lesson: When an entire industry is brought down for some reason, search for stocks not affected that have been caught up in the mess.
What do you think about Bridgepoint, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Bridgepoint?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended writing puts in Bridgepoint, and the Fool owns shares of it. Motley Fool newsletter services have recommended buying shares of Atwood. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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