Apollo Group Inc (NASDAQ:APOL) is working to meet this trend with learning format changes at Western International University. The university has eight-week courses that put more of an emphasis on practical context. It’s too early to say whether this model will bring more money to Apollo, but it’s certainly a step in the same direction that higher education is heading.
On the positive side, there will always be a demand for knowledge as our world becomes more complex than ever. You cannot expect enrollment trends to continue declining at the same rates year after year. Education is a must for a great number of people, and people seeking education will have to pay for it.
I think that the sell-off in Apollo Group Inc (NASDAQ:APOL) presents a buying opportunity. The stock is trading at a discount to its peers. The company has no big specific problems except for those that it shares with the whole industry. DeVry Inc. (NYSE:DV) and ITT Educational Services, Inc. (NYSE:ESI) have yet to present their results heading into the upcoming earnings season. As investors show increasing concern over the growth prospects of educational stocks and easily become nervous, I would recommend staying on the sidelines and waiting to see the earnings numbers.
Vladimir Zernov has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article The Sell-Off of This Educational Stock Is Overdone originally appeared on Fool.com.
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