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.
Corinthian facts
Headquarters (Founded) | Santa Ana, Calif. (1995) |
Market Cap | $213.7 million |
Industry | Education services |
Trailing-12-Month Revenue | $1.6 billion |
Management | Chairman/CEO Jack Massimino |
Return on Equity (Average, Past 3 Years) | 3.1% |
Cash/Debt | $72.5 million / $149.0 million |
Competitors | Apollo Group |
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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