Information
School’s out forever for the U.S. Department of Education, if the Trump administration has its way. ...
Original sourceAI Summary
Trump administration plans to dismantle Department of Education oversight for for-profits. For-profit education stocks surged after Trump's election win in 2016. Department’s rules on gainful employment may be revoked, boosting industry growth. Grand Canyon and Adtalem reported strong revenue growth and profit margins. Potential deregulation could lead to increased enrollment and higher loan defaults.
Sentiment Rationale
Past deregulation yielded stock price spikes for for-profit education companies.
Trading Thesis
Anticipated policy changes may quickly affect stock valuations in the near term.
Market-Moving
- Trump administration plans to dismantle Department of Education oversight for for-profits.
- For-profit education stocks surged after Trump's election win in 2016.
- Department’s rules on gainful employment may be revoked, boosting industry growth.
Key Facts
- Trump administration plans to dismantle Department of Education oversight for for-profits.
- For-profit education stocks surged after Trump's election win in 2016.
- Department’s rules on gainful employment may be revoked, boosting industry growth.
- Grand Canyon and Adtalem reported strong revenue growth and profit margins.
- Potential deregulation could lead to increased enrollment and higher loan defaults.
Companies Mentioned
- ATGE (ATGE)
- LOPE (LOPE)
- STRA (STRA)
Industry News
The changes in federal regulations directly affect ATGE's operational environment and profitability.