Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Jan 17, 2013, DeVry Education Group Inc. (DV - Analyst Report) reached a 52-week high of $39.94, soon after President Obama expanded federal support to help more students afford a college education. DeVry currently carries a Zacks Rank #3 (Hold).

Share Price Drivers

The President has committed to devise an effective system to help low-income students afford college education. This is in keeping with his goal to help America generate the highest proportion of college graduates in the world by 2020.

President Obama has taken a number of steps to provide the tools, access and opportunity to pursue higher education to low-income students.

The President has doubled the Federal investments in Pell Grants, a federal student financial aid that is usually awarded to undergraduate students. The President raised the maximum Pell Grant award amount to $5,635 for the 2013-14 award year — a $905 increase since 2008.

Moreover, the President announced reforms to student loans to help students manage the loans in a better way. Beginning the end of this year, students will be given an option to cap repayment of student loans at 10% of their monthly income. This is aimed to reduce the burden of student loans.

In addition, President Obama has succeeded in keeping interest rates on Federal student loans low for this school year.

More than 100 colleges and 40 organizations have joined the cause to help more people graduate from college.

The administration’s campaign to encourage low-income students to attend college comes as a boon to post-secondary education providers like DeVry, Strayer Education Inc. (STRA - Analyst Report), Apollo Education Group, Inc. (APOL - Analyst Report), American Public Education, Inc. (APEI - Analyst Report) and many more. Most higher education colleges have witnessed a sharp decline in enrollments in the past few quarters due to weakness across the entire higher education system in the United States.

A weak macroeconomic environment has led to a subsequent decline in student demand due to the hesitancy over taking a loan. Students are generally apprehensive about the value of pursuing a degree and lack confidence in the job market. President Obama’s support for higher education is expected to improve enrollment trends for these education companies; thereby boosting revenues and profits.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%