Education Names Outperforming (COCO, APOL, ESI, LINC)

Stocks in the education sector are displaying relative strength today, but offer little reprieve after a brutal sell-off over the past three months. Corinthian Colleges COCO is higher by 9 cents, or 1.16%, to $7.87. Apollo Group APOL is higher by 63 cents, or 1.51%, to $42.47. Over the past three months shares of Corinthian and Apollo are down by 45.8% and 21.7%, respectively. The for profit education sector has come under intense scrutiny of late for its use of Title IV student loans. These loans are government-sponsored and account for roughly 80% of total revenues at some for-profit education companies. Lawmakers have argued that for-profit education companies have taken advantage of Title IV loans while not delivering adequate educational programs for their students. Many for-profit schools were also accused of deceptive recruiting practices and application fraud. Shares of ITT Educational Services ESI are higher by $1.06, or 1.49%, to $72.44. Lincoln Educational Services LINC shares are up 19 cents, or 1.35%, to $14.23.