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.
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.
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.
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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.