Apollo Group Inc.
) recently appointed J. Mitchell Bowling as the new chief
operating officer, effective from Dec 2, 2013.
Mr. Bowling held the position of senior vice president and
general manager, new businesses, at media and technology company
) prior to joining Apollo. With his extensive experience and a
record of delivering positive results, Mr. Bowling is expected to
drive growth for Apollo.
In late October, Apollo reported strong fourth-quarter fiscal
2013 results, beating the Zacks Consensus Estimate for both
revenues and earnings, even though enrollment continued to
decline. Apollo's enrollments have been sluggish for many
quarters. Enrollment trends throughout the education industry
have been affected by changing regulatory requirements, sluggish
demand due to students' aversion to debt, robust competition and
a volatile economy.
Other Stocks to Consider
Apollo carries a Zacks Rank #3 (Hold). Overall, we are
positive about Apollo Group's dominant market position and focus
on offering relevant career oriented educational programs. Its
accelerated efforts to right-size its business through
significant layoffs and campus closings will make it more
competitive in the long term. Apollo's investments in adaptive
learning, curriculum development, new learning systems and
student service platforms should improve student value
proposition and retention rates.
Though encouraging, these initiatives are yet to show any
sustainable enrollment growth. The lack of visibility on
enrollment improvement and the possibility of regulatory changes
keep us on the sidelines.
Better-placed stocks in the education sector include
New Oriental Education & Technology Group
Xueda Education Group
). Both the companies carry a Zacks Rank #1 (Strong Buy).
APOLLO GROUP (APOL): Free Stock Analysis
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XUEDA EDUC-ADR (XUE): Free Stock Analysis
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