2-Star Stocks Poised to Plunge: Corinthian Colleges?
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.
|Headquarters (Founded)||Santa Ana, Calif. (1995)|
|Market Cap||$213.7 million|
|Trailing-12-Month Revenue||$1.6 billion|
|Management||Chairman/CEO Jack Massimino|
CFO Robert Owen
|Return on Equity (Average, Past 3 Years)||3.1%|
|Cash/Debt||$72.5 million / $149.0 million|
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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