2-Star Stocks Poised to Plunge: Corinthian Colleges?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Corinthian Colleges (Nasdaq: COCO  ) has received a low two-star ranking.

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

Corinthian facts

Headquarters (Founded) Santa Ana, Calif. (1995)
Market Cap $213.7 million
Industry Education services
Trailing-12-Month Revenue $1.6 billion
Management Chairman/CEO Jack Massimino
CFO Robert Owen
Return on Equity (Average, Past 3 Years) 3.1%
Cash/Debt $72.5 million / $149.0 million
Competitors Apollo Group
DeVry
ITT Educational Services

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

On CAPS, 20% of the 367 members who have rated Corinthian believe the stock will underperform the S&P 500 going forward.

Just this past summer, one of those bears, fellow Fool Justin Loiseau (TMFJLo), succinctly summed up the underperform case for our community: "Accreditation scares, lawsuits, and a close shave with the '90/10' federal financial aid rule are enough to make me confident that [Corinthian] is going to fail. Abysmal graduation rates ... will also hurt this company in the long run."

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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