Career Education Corp. (NASDAQ:CECO) operates a network of colleges, schools, and universities offering a variety of degree programs via online, ground-based, and hybrid learning program offerings. For-profit education stocks have been pummeled in recent years due to an unfavorable regulatory backdrop, heightened regulatory oversight and public scrutiny, accreditation issues, and various litigation, all of which have led to steep drops in enrollment and profitability. These issues were significantly compounded by a catastrophic recession and a horrible employment backdrop.
CECO has been no exception, as enrollments and revenues have fallen off a cliff over the last three fiscal years. Because the company's business model is utilization-driven and fixed costs are high (particularly in ground-based campuses), operating losses have...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|