Why Apollo Group Is Poised to Keep Plungin'

Why Apollo Group Is Poised to Keep Plungin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit education company Apollo Group has received a distressing two-star ranking.

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

Apollo facts

Headquarters (founded)

Phoenix (1973)

Market Cap

$2.0 billion


Education services

Trailing-12-Month Revenue

$3.8 billion


CEO Gregory Cappelli (since 2012)

CFO Brian Swartz (since 2009)

Return on Equity (average, past 3 years)



$891.1 million / $87.6 million


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

On CAPS, 16% of the 941 members who have rated Apollo believe the stock will underperform the S&P 500 going forward.

A couple of days ago, one of those bears, mjfoysr11, succinctly summed up the Apollo underperform case for our community:

Pressure on the industry from the economy, regulatory changes and a doubling of student interest rates is causing the sector to lose new student enrollments. Increased competition from community colleges and online universities are also eroding the customer base. The top line is shrinking and once expenses are cut below a critical level the bottom line is going to plummet.

While you can certainly make quick gains in speculative turnaround plays, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Why Apollo Group Is Poised to Keep Plungin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published