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Why You Should Add Bridgepoint (BPI) to Your Portfolio Now
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It goes without saying that lower student demand, regulatory restrictions, threats to federal funding and a competitive environment are leading to sluggish enrollments in for-profit schools. Prominent players in the sector like Adtalem Global Education Inc. (ATGE - Free Report) , Universal Technical Institute, Inc. (UTI - Free Report) and American Public Education, Inc. (APEI - Free Report) are struggling with fading enrollments trends. Rising cost of necessities such as health care, housing and education is crowding out discretionary spending for consumers.
That said, overlooking the sector will not be prudent as there are several companies with decent performance history and strong fundamentals, signaling at a profitable investment opportunity.
Bridgepoint Education, Inc. is one such company that continues to show strength in several areas and adding the stock to your portfolio should not be a disappointment. The company is the provider of postsecondary education services. Let us delve deeper into the other factors which make this Zacks Rank #1 (Strong Buy) stock a lucrative pick. You can see the complete list of today’s Zacks #1 Rank stocks here.
What Makes Bridgepoint a Solid Pick Right Now?
Stock Price Movement: Bridgepoint’s shares have increased 42.5% in the last three months, outperforming the Zacks categorized Schools industry’s gain of 30.5%. That said, we have noticed that Bridgepoint has also outperformed the industry in 12-week and 52-week time frame.
Earnings Growth: Possibly, nothing is more important than earnings growth, as increasing profit levels are often an indication of strong prospects (and stock price gains) ahead for the company. Notably, last month, the company came up with better-than-expected first-quarter results. The company posted earnings of 23 cents a year, crushing expectations of breakeven. The reported earnings swung from a loss of 2 cents a year ago.
On this front, Bridgepoint has put up a long-term (3–5 years) expected EPS growth rate of 10%.
Bridgepoint has a projected EPS growth rate of 263.9% in 2017, 46.3x higher than the industry average of 5.7%.
Estimate Revisions: In the last 60 days, the Zacks Consensus Estimate for Bridgepoint moved north by 100% to 66 cents per share and 17.6% to 60 cents per share for 2017 and 2018, respectively. The positive earnings estimate revisions indicate analysts’ confidence and substantiate the stock’s Zacks Rank #1.
Innovations: Recently, the company has also introduced Canvas, an open online learning interface. The system enables academic institutions to develop, deliver, and manage engaging face-to-face and online learning experiences. Hence, the company’s ongoing efforts to boost the modern academic experience for its students will drive profitability and thereby stock performance.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Why You Should Add Bridgepoint (BPI) to Your Portfolio Now
It goes without saying that lower student demand, regulatory restrictions, threats to federal funding and a competitive environment are leading to sluggish enrollments in for-profit schools. Prominent players in the sector like Adtalem Global Education Inc. (ATGE - Free Report) , Universal Technical Institute, Inc. (UTI - Free Report) and American Public Education, Inc. (APEI - Free Report) are struggling with fading enrollments trends. Rising cost of necessities such as health care, housing and education is crowding out discretionary spending for consumers.
That said, overlooking the sector will not be prudent as there are several companies with decent performance history and strong fundamentals, signaling at a profitable investment opportunity.
Bridgepoint Education, Inc. is one such company that continues to show strength in several areas and adding the stock to your portfolio should not be a disappointment. The company is the provider of postsecondary education services. Let us delve deeper into the other factors which make this Zacks Rank #1 (Strong Buy) stock a lucrative pick. You can see the complete list of today’s Zacks #1 Rank stocks here.
What Makes Bridgepoint a Solid Pick Right Now?
Stock Price Movement: Bridgepoint’s shares have increased 42.5% in the last three months, outperforming the Zacks categorized Schools industry’s gain of 30.5%. That said, we have noticed that Bridgepoint has also outperformed the industry in 12-week and 52-week time frame.
Earnings Growth: Possibly, nothing is more important than earnings growth, as increasing profit levels are often an indication of strong prospects (and stock price gains) ahead for the company. Notably, last month, the company came up with better-than-expected first-quarter results. The company posted earnings of 23 cents a year, crushing expectations of breakeven. The reported earnings swung from a loss of 2 cents a year ago.
On this front, Bridgepoint has put up a long-term (3–5 years) expected EPS growth rate of 10%.
Bridgepoint has a projected EPS growth rate of 263.9% in 2017, 46.3x higher than the industry average of 5.7%.
Estimate Revisions: In the last 60 days, the Zacks Consensus Estimate for Bridgepoint moved north by 100% to 66 cents per share and 17.6% to 60 cents per share for 2017 and 2018, respectively. The positive earnings estimate revisions indicate analysts’ confidence and substantiate the stock’s Zacks Rank #1.
Innovations: Recently, the company has also introduced Canvas, an open online learning interface. The system enables academic institutions to develop, deliver, and manage engaging face-to-face and online learning experiences. Hence, the company’s ongoing efforts to boost the modern academic experience for its students will drive profitability and thereby stock performance.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>