Why Education Management is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Education Management has received the dreaded one-star ranking.

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

Education Managementfacts

Headquarters (founded)

Pittsburgh, Pa. (1962)

Market Cap

$691.0 million


Education services

Trailing-12-Month Revenue

$2.7 billion


CEO Edward West (since 2012)

Acting CFO Randall Killeen (since 2012)

Return on Capital (average, past 3 years)



$212.0 million / $1.5 billion


Apollo Group

Career Education

Laureate Education

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

On CAPS, 44% of the 59 members who have rated Education Management believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Chemdawg, succinctly summed up the Education Management bear case for our community:

[A]n education doesn't mean much in this job market. The huge amount of Student loan debt already present in this country will be the next huge bailout needed. Any industry that requires help from the government going forward is facing significant headwinds. This stock has almost doubled in the past few months for no real reason ... I think this one takes a step back toward the 3 dollar range.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Education Management is Poised to Plunge originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.