Apollo Group Inc. (NASDAQ: APOL): Apollo Group is currently trading near $20, while analysts expect the company to earn $2.73 per share this year (fiscal year end is August 31), and $2.21 per share in the coming year.
The company has made some very painful (but necessary) restructuring decisions over the past year. In October, Apollo Group announced that it would close 115 physical campuses and lay off 47% of its University of Phoenix employees.
On May 14, Apollo Group received a letter from the HLC Institutional Actions Counsel, stating that the company would continue to be an accredited university for another 10 years. This positive announcement helps clear the way for stronger enrollment and better employment prospects for future graduates.
I look forward to the company's next quarterly report, which should incorporate new expectations based on this positive news.
Apollo Group is currently trading at a single digit multiple, in an environment that is becoming much more conducive to growth. I expect analyst estimates to increase over the next several quarters, which should result in a higher PE multiple for the stock.