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Education stocks a sizzling Trump trade, what's the end game?

Published 11/19/2016, 11:07 AM
Updated 11/19/2016, 11:07 AM
Education stocks a sizzling Trump trade, what's the end game?
  • Donald Trump hasn't announced his choice to lead the Department of Education yet, but for-profit education stocks have been in a celebratory mood ever since the U.S. election.
  • The new administration is expected to have a lighter touch with regulations and restrictions on the for-profit sector, an industry the President-elect himself is familiar with after settling a lawsuit filed against Trump University for $25M. There's been some speculation that the DOE will see a major transition over the next four years.
  • Education stocks rising more than 20% since the election include Strayer Education (NASDAQ:STRA), Universal Technical Institute (NYSE:UTI), Capella Education (NASDAQ:CPLA), Bridgepoint Education (NYSE:BPI), Career Education Corp. (NASDAQ:CECO), Grand Canyon Education (NASDAQ:LOPE), DeVry Education (NYSE:DV) and Chegg (NYSE:CHGG). Many of those names are now at or near their 52-week highs which brings up the question of how far the rally can extend?
  • Related stocks: APEI, APOL, NORD, EDU, GPX, LRN.


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