Stocks Fall, Recessions Abound But Education Stocks Go Up

You know, in every environment there is something that prospers…even in recessions. However, many times people just think of defensive stocks like make up companies or alcohol or cigarette companies, food companies, etc.

However, when stocks tank and corporate America slows down, the unemployment lines lengthen.

When this happens, education stocks shine. Why? Because everyone knows they are competing against a glut of people at that time more than ever. You see, when there’s “full employment” and the job market is tight, it’s not as hard to get a job. But when few corporations are hiring and there are tons of people fighting over the same handful of jobs, the best way to get an edge is to get an education.

Some may just get certifications but others will finish their degree. Others will go to trade or technical schools. At any rate, they’re furthering their education so that they can hone their skills for their present industry OR at other times, they’ve decided that there’s no better time to shift gears and change occupations. You see, many people don’t want to “get out of the boat”…but if they are shoved out…they’ll act!

Therefore, many take this opportunity to act and to think about their future quite a bit more. After all, there’s not much more sobering than losing paycheck.

So, with that said…I find it interesting that many “education stocks” are either hitting their 52 week highs or are very near those levels. This is awesome since we’re in an environment when most stocks are closer to their 52 week lows than they are their 52 week highs.

A few of these specifically are Apollo Group (APOL), Corinthian College (COCO) and DeVry (DV).

Now you may think that you’ve never heard of Apollo Group. No, this is not the place where people sing and dance and get booed off the stage. No, it’s the place that owns companies that you do know like the University of Phoenix and the College for Financial Planning. They have over 90 college campuses and 154 learning centers. Not only do they have locations all over the place, but this was one of the first four year universities to allow people to go to college online and get a full fledged degree.

They’ve done really good in this recession. In fact, analysts thought they would make about 83 cents a share in this past reported quarter but they ended up blowing out those estimates and made $1.12 a share instead!

Corinthian Colleges operates 95 schools in 26 states. So they’re no small company either. DeVry has been around since 1987 and it is one of the few publicly traded, international higher education companies in North America.

If tough times persist longer than most think…then these companies could continue to have the “wind to their back” and continue to produce stellar earnings.

So it’s encouraging to see something hitting or getting close to its 52 week highs. Believe it or not, there are still some of those out there. They aren’t many right now for sure…but they’re out there.

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