Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of for-profit education provider Strayer Education
So what: While Strayer's profit fell in the first quarter, a surprising 12% increase in new student enrollment -- versus Wall Street's estimate of a 6% decline -- is triggering hopes of a prolonged turnaround. In fact, the jump in new sign-ups comes after six straight quarters of decline, suggesting that the tailwinds facing the sector are finally starting to ease.
Now what: Don't expect the momentum to wane anytime soon. Based on the solid enrollments for the spring term, management now sees second-quarter EPS of $1.84 to $1.86, largely in line with Wall Street estimates. The regulatory uncertainty surrounding the sector is still too much for this Fool to stomach, but for less-risk-averse bargain hunters, Strayer might be worth considering.
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