Why Bridgepoint Is Poised to Bounce Back
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 has earned a respected four-star ranking.
With that in mind, let's take a closer look at Bridgepoint and see what CAPS investors are saying about the stock right now.
Bridgepointfacts
Headquarters (founded) | San Diego, Calif. (1999) |
Market Cap | $563.3 million |
Industry | Education services |
Trailing-12-Month Revenue | $968.2 million |
Management | Co-Founder/CEO Andrew Clark CFO Daniel Devine |
Return on Equity (average, past 3 years) | 52.3% |
Cash/Debt | $392.9 million/$0 |
Competitors | Apollo Group Corinthian Colleges DeVry |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 497 members who have rated Bridgepoint believe the stock will outperform the S&P 500 going forward.
Earlier today, one of those Fools, bes0m3b0dy, tapped Bridgepoint as a particularly enticing bargain opportunity:
The main raincloud over this stock is Ashford University losing its accreditation. ... Though I do not claim to predict the outcome of this situation, the stock is worth at least $18 even if enrollment at Ashford is more than cut in half. At a price of $10.47 this stock is such a bargain that there is a large margin of safety: the "worst-case" scenario of Ashford losing its accreditation means that revenues may slowly decline for a few years then fall precipitously (assuming management does absolutely nothing), but with the current cash position, Bridgepoint's stock is already massively depressed. The risk-reward on this one is quite favorable.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Bridgepoint may not be your top choice.
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The article Why Bridgepoint Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Bridgepoint Education. 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.
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