What Apollo's Earnings Mean for For-Profit Education

Ever since 2010, the for-profit education industry has been under fire. Following an undercover investigation by the Government Accountability Office, the Department of Education has tightened the strings on these schools that rely overwhelmingly on government funding to turn a profit.

As a result, shares of for-profit educators have plunged. Apollo (NASDAQ: APOL  ) , parent company of The University of Phoenix and the largest industry player, hasn't been exempt from that trend.

Ever since March of last year, however, several for-profit educators have seen their shares skyrocket. Apollo's shares are up more than 80%, Bridgepoint Education's (NYSE: BPI  ) are up more than 70%, and Education Management  (NASDAQOTH: EDMC  ) has seen its shares rise an astounding 180%.

But does this mean things are really getting better in the industry? In the video below, Motley Fool contributor Brian Stoffel explains what metrics long-term investors should really be paying attention to before investing in these companies.

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Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

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Related Tickers

8/28/2015 4:00 PM
APOL $11.47 Up +0.28 +2.50%
Apollo Group CAPS Rating: *
BPI $8.18 Up +0.13 +1.61%
Bridgepoint Educat… CAPS Rating: ***
EDMC $0.09 Down +0.00 +0.00%
Education Mgmt CAPS Rating: *