Markets

DeVry Launches Scholarship Programs at HealthCare Schools - Analyst Blog

A stock chart on display
Credit: Shutterstock photo

DeVry Education Group Inc. ( DV ) 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 Colleges.

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 ( CPLA ), Strayer Education, Inc. ( STRA ), and Grand Canyon Education Inc. ( LOPE ). All the three stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

LOPE STRA

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More