ITT Educational Services (ESI) is having a very good decade. The stock finished 1999 at $7.72 (adjusted for a split). Today it’s at $105 which translates to a 1,200% gain while the rest of the stock market is down.
The company is one of the largest providers of technology-focused degree programs in the U.S. For out-of-work Americans, these classes are an important part of adapting to a competitive job market and honing their resumes right now. From computer-aided graphics design to engineering and information technology, ESI offers its services to 60,000+ students through its 100 institutes located throughout the country. Each location is nationally accredited by the U.S. Department of Education, and the programs are run through a combination of classroom and online instruction.
The company also had a very good quarter. This morning, the stock reported Q1 EPS of $1.59 which was 18 cents more than estimates. The company also raised both ends of its full-year guidance by 50 cents a share. ESI now sees 2009 EPS ranging between $7 and $7.25.
As unemployment levels continue to rise, ESI is cashing in as many adults are returning to school for career training. Eight new colleges were opened in 2008 and the company is on track to open between six to eight new locations in 2009. ITT Educational Services is an outstanding buy.