Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Grand Canyon Education were riding high today, gaining as much as 16% after soaring past estimates in its earnings report.
So what: The for-profit educator said revenue jumped 21.3% to $142 million, topping expectations of $137.9 million, and adjusted EPS jumped from $0.32 a year ago to $0.43, $0.04 better than the analyst target. Overall enrollment increased by a solid 15.7%, but the company didn't provide statistics on new enrollment, a widely followed indicator in the education sector.
Now what: No doubt it was a strong quarter for Grand Canyon, which has avoided the struggles of many of its industry peers. In fact, shares have nearly doubled in the past year, but unlike much of the industry, whose shares are going for cheap, Grand Canyon is valued at a P/E of 19. While the stock has continued to move up, it's hard to see what separates Grand Canyon from its peers. I'd stay away until things finish shaking out in the industry.
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The article Why Grand Canyon Shares Jumped originally appeared on Fool.com.
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