The for-profit education industry continues to do very well. First, we had good earnings news from Apollo Group (APOL). We also see that shares of Lincoln Educational Services (LINC) are at another new 52-week high. Bear in mind how far the S&P 500 is from its 52-week high.
Lincoln Educational Services focuses on career training and degrees programs in fields like automotive technology, health sciences, culinary arts and information technology, among a host of other fields. More than 20,000 students are enrolled at some 40 Lincoln campuses in more than a dozen states. Lincoln Educational has been expanding its facilities and areas of study, as well as entering new geographic markets–which couldn’t come at a better time as more Americans are heading back to school to polish their resumes in today’s highly competitive job market. As the unemployment rate continues to trend upwards, more workers are enrolling in classes, and LINC is seeing business boom.
Lincoln Educational is clearly benefiting from increasing enrollment. In addition to laid off workers heading back to school for retraining, more younger members of the workforce are delaying their quest for a career by staying in school. Due to its rising number of students, the company increased its forward-looking sales and earnings guidance. The stock is a great buy.