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5 Reasons Why You Should Buy DeVry Education (DV) Now
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The U.S. presidential election had a positive impact on the school industry. Shares of for-profit education companies like Strayer Education (STRA - Free Report) , Universal Technical Institute, Inc. (UTI - Free Report) and American Public Education, Inc. (APEI - Free Report) have rallied since the victory of Donald Trump.
Trump has assured support to schools, confirming federal funding for schools or online companies. He may even ease regulations imposed on the industry by the Obama administration.
Illinois-based DeVry Education Group Inc. (DV - Free Report) is one such company to gain from Trump’s win and strength in several of the key areas. Thus, adding the stock to your portfolio should be a prudent move. Notably, shares of this Zacks Rank #2 (Buy) company gained more than 80% over the past six months compared to 16.9% growth of the Zacks categorized Schools industry.You can see the complete list of today’s Zacks #1 Rank stocks here.
What Makes DeVry an Attractive Pick?
Transformation Strategy & Cost Savings: DeVry has adopted a transformation strategy for DeVry University which includes the improvement of both student experience and affordability of the programs along with strategic marketing. Through fiscal 2017, the company plans to introduce a number of short-period, stackable programs that provide students the flexibility and affordability to pursue education outside the traditional four-year degree course structure.
DeVry also undertook cost-saving initiatives like workforce reduction and reduction of discretionary spending. The company has brought down its expenses by $181 million in fiscal 2016 and expects to continue to do so in fiscal 2017 as well.
Superior ROE: DeVry’s Return on Equity (ROE) ratio is 9.56% compared with the industry average of 6.74%. This indicates that the company reinvests more efficiently as compared to the industry.
Valuation: DeVry has a trailing twelve-month PE ratio of 12.93. This level actually compares favorably with the market as the PE for the S&P 500 stands at about 19.88.
Further, the stock’s PE also compares favorably with the Zacks classified Schools industry’s trailing twelve months PE ratio, which stands at 25.14. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
Also DeVry’s has a forward PE ratio (price relative to this year’s earnings) of 12.61, so it is fair to say that a slightly more value-oriented path may be ahead for DeVry stock in the near term too.
VGM Score: DeVry has a VGM Score of ‘A’. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or 2 make solid investment choices.
Estimates Revisions: The company’s current quarter has seen three estimates go up over the last two months compared to no estimate moving lower. Meanwhile, fiscal 2017 estimates have seen two upward revisions and no downward movement in the same time frame.
The resultant effect on the consensus estimates was an 8.9% increase for the current quarter and 0.4% rise for the current year. The positive earnings estimate revisions indicate analysts’ confidence and substantiate the solid rank for the stock. Also, DeVry beat earnings estimates in all of the past four quarters, the average being 8.94%.
What’s more, for fiscal 2017, earnings per share (EPS) are projected to grow nearly 6%.
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5 Reasons Why You Should Buy DeVry Education (DV) Now
The U.S. presidential election had a positive impact on the school industry. Shares of for-profit education companies like Strayer Education (STRA - Free Report) , Universal Technical Institute, Inc. (UTI - Free Report) and American Public Education, Inc. (APEI - Free Report) have rallied since the victory of Donald Trump.
Trump has assured support to schools, confirming federal funding for schools or online companies. He may even ease regulations imposed on the industry by the Obama administration.
Illinois-based DeVry Education Group Inc. (DV - Free Report) is one such company to gain from Trump’s win and strength in several of the key areas. Thus, adding the stock to your portfolio should be a prudent move. Notably, shares of this Zacks Rank #2 (Buy) company gained more than 80% over the past six months compared to 16.9% growth of the Zacks categorized Schools industry.You can see the complete list of today’s Zacks #1 Rank stocks here.
What Makes DeVry an Attractive Pick?
Transformation Strategy & Cost Savings: DeVry has adopted a transformation strategy for DeVry University which includes the improvement of both student experience and affordability of the programs along with strategic marketing. Through fiscal 2017, the company plans to introduce a number of short-period, stackable programs that provide students the flexibility and affordability to pursue education outside the traditional four-year degree course structure.
DeVry also undertook cost-saving initiatives like workforce reduction and reduction of discretionary spending. The company has brought down its expenses by $181 million in fiscal 2016 and expects to continue to do so in fiscal 2017 as well.
Superior ROE: DeVry’s Return on Equity (ROE) ratio is 9.56% compared with the industry average of 6.74%. This indicates that the company reinvests more efficiently as compared to the industry.
Valuation: DeVry has a trailing twelve-month PE ratio of 12.93. This level actually compares favorably with the market as the PE for the S&P 500 stands at about 19.88.
Further, the stock’s PE also compares favorably with the Zacks classified Schools industry’s trailing twelve months PE ratio, which stands at 25.14. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
Also DeVry’s has a forward PE ratio (price relative to this year’s earnings) of 12.61, so it is fair to say that a slightly more value-oriented path may be ahead for DeVry stock in the near term too.
VGM Score: DeVry has a VGM Score of ‘A’. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or 2 make solid investment choices.
Estimates Revisions: The company’s current quarter has seen three estimates go up over the last two months compared to no estimate moving lower. Meanwhile, fiscal 2017 estimates have seen two upward revisions and no downward movement in the same time frame.
The resultant effect on the consensus estimates was an 8.9% increase for the current quarter and 0.4% rise for the current year. The positive earnings estimate revisions indicate analysts’ confidence and substantiate the solid rank for the stock. Also, DeVry beat earnings estimates in all of the past four quarters, the average being 8.94%.
What’s more, for fiscal 2017, earnings per share (EPS) are projected to grow nearly 6%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>