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DeVry Education Opens Chamberlain College in Charlotte, NC

Chamberlain College of Nursing of DeVry Education Group Inc.DV recently opened its first North Carolina campus in Charlotte. It marks the company's 19th campus in the U.S. Chamberlain College of Nursing has started accepting applications for its three-year Bachelor of Science in Nursing (BSN) degree program. Classes will begin from Jan 4, 2015.

The Charlotte campus has a Simcare center, which allows the students to train in a real-time medical scenario enabled by high-tech patient simulators. Patient simulators exhibit parameters like real patients and are controlled by instructors. In addition, the students will have access to academic resources and support through the Center for Academic Success. The campus will also offer academic coaching and mentoring under the Chamberlain Care Student Success Model.

Addition of the Charlotte campus will boost company's top line as there is strong demand for medical programs among the students. Medical programs produce strong student outcomes, as there is inadequate number of medical professionals compared to the population.

As such, many education companies have recently begun focusing on medical programs. Earlier in Sep 2015, another education company, Capella Education Company CPLA received approval from the Higher Learning Commission to provide the RN-to-BSN degree program under its new FlexPath model starting Jan 2016. (Read: Capella's (CPLA) FlexPath Nursing Program Gets HLC Nod )

The Medical and Healthcare segment represented 45% of DeVry Education Group's revenues in fiscal 2015 and is the company's largest segment. In particular, the health care institutions, Chamberlain and Ross, have gained on strong demand for jobs in health care field across the U.S. DeVry's medical schools produce strong student outcomes, with very low cohort-default rates and high job placement rates. In addition, these schools have been consistently opening campuses and introducing programs. The programs have already proven to be successful and are making strong contributions to revenues.

However, DeVry posted soft results in the fiscal 2015. Higher growth investments in health care schools and declining enrollment levels at DeVry University due to weak demand have been eating into the company's profits for the past three quarters. DeVry expects these headwinds to affect first-quarter 2016 results as well.

DeVry carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

A couple of better-ranked stocks in the education industry include Strayer Education Inc. STRA and Grand Canyon Education, Inc. LOPE . While Strayer Education sports a Zacks Rank #1 (Strong Buy), Grand Canyon Education carries a Zacks Rank #2 (Buy).

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STRAYER EDUC (STRA): Free Stock Analysis Report

DEVRY EDUCATION (DV): Free Stock Analysis Report

CAPELLA EDUCATN (CPLA): Free Stock Analysis Report

GRAND CANYON ED (LOPE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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