Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Lincoln Educational Services (Nasdaq: LINC ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Lincoln's business and see what CAPS investors are saying about the stock right now.
Lincoln facts
| Headquarters (Founded) |
West Orange, N.J. (1946) |
| Market Cap |
$342.1 million |
| Industry |
Education services |
| Trailing-12-Month Revenue |
$632.4 million |
| Management |
CEO Shaun McAlmont (since 2009)
CFO Cesar Ribeiro (since 2004)
|
| Return on Equity (Average, Past 3 Years) |
23% |
| Cash/Debt |
$43.7 million / $36.9 million |
| Dividend Yield |
6.6% |
| Competitors |
Apollo Group (Nasdaq: APOL )
DeVry (NYSE: DV )
Strayer Education (Nasdaq: STRA )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 191 members who have rated Lincoln believe the stock will outperform the S&P 500 going forward. These bulls include All-Star ServusDei7, who is ranked in the top 2% of our community, and ichangedmyuserid.
Just last month, ServusDei7 listed several of Lincoln's positives: "Single digit P/E, consistent earnings for at least the past 10 years with good growth, high ROE, healthy balance sheet, and good yield. Clearly a winner."
In fact, Lincoln currently sports a particularly paltry P/E of 5.6. That represents a clear discount to competitors like Apollo (16.1), DeVry (12.3), and Strayer (12.5).
CAPS member ichangedmyuserid elaborates on the bull case for Lincoln:
Is it wrong that I like education stocks so much? The industry is great and is pretty recession proof. Lincoln has the highest dividend in the industry at a hefty 6% (even if it gets cut in half, still very reasonable) and a top 10 return on equity and earnings growth. Brand recognition is good, which is important in a competitive industry like this.
What do you think about Lincoln, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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