Apollo Set To Rebound After Lackluster 2007 January 23, 2008: 08:05 PM EST
Jan. 24, 2008 (Investor's Business Daily delivered by Newstex) --
Apollo Group APOL is about 7% off its 52-week high set just four sessions ago. That's better than the Nasdaq composite, which is 19% off its October peak.
The Arizona-based firm provides postsecondary education programs through its four units: University of Phoenix, Institute for Professional Development, College for Financial Planning and Western International University.
Last year, Apollo grew profit slightly less than 1%, which was its weakest performance since 1993. But analysts expect earnings to grow 13% this year and 15% in fiscal '09.
It recently reported a 28% rise in fiscal Q1 profit, the best in 10 quarters. Sales grew 17%, thanks to higher tuition prices. That was its fourth straight period of accelerating growth.
In an analysts' conference call, the company said that one of its growth drivers has been working folks whose wages aren't enough to support a comfortable middle-class lifestyle. So for them, higher education is the answer.
Still, even if a stock looks intriguing, it's most prudent to stay on the sidelines and track it while the market's in a correction.