DeVry Education Group Inc.
) recently announced the launch of new scholarship programs at two
of its healthcare schools.
While Ross University School of Medicine introduced 12
merit-based scholarship programs, American University of the
Caribbean School of Medicine (AUC) launched 8 such scholarships to
help qualified students fund their medical education.
Revenues at DeVry Medical International (DMI) - which includes
Ross University and AUC - grew 7% in the second quarter driven by
enrollment growth. We believe these scholarships would drive
revenues at DMI further in the next quarter.
In fact, DeVry's healthcare institutions have been doing quite
well for the past two years. Strong enrollment trends in DeVry's
healthcare and international segments have been offsetting the
challenging environment for the flagship DeVry University for the
past two years.
The healthcare institutions, especially Chamberlain and Ross,
are gaining from increased demand for nurses and physicians across
the U.S. In fact, revenues of the Medical and Healthcare segment
have grown at a 32% compound annual growth rate since 2008.
Moreover, DeVry's medical schools produce strong student outcomes
and have very low cohort default rates.
DeVry's Medical and Healthcare segment includes healthcare
schools like Ross University Schools of Medicine and Veterinary
Medicine, AUC, Chamberlain College of Nursing and Carrington
With strong growth witnessed in the last two years, management
believes the medical and healthcare segment is poised to increase
organic revenues and operating income at a double-digit pace over
the next three to five years.
Other Stocks to Consider
DeVry carries a Zacks Rank #3 (Hold). Better-ranked stocks in
the education industry include Capella Education Company (
), Strayer Education, Inc. (
), and Grand Canyon Education Inc. (
). All the three stocks carry a Zacks Rank #2 (Buy).
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