#8 DeVry (DV)
| Recommended by: Chris Johnson and Jon Lewis, Editors, The Winning Edge. For-profit education companies have taken a pounding over the past few months for not properly preparing graduates for jobs that pay well enough to cover the loan debts they incur. And student loans are where many of these companies derive their main revenue streams. Looking at the bigger educational stocks, DeVry Inc. (NYSE: DV) is among the most vulnerable. Its post-secondary education programs are not suited for those looking to enhance their skill sets to find a job. And education funding cuts could hit the company on the top and bottom lines. On the chart, DV appears to have found a bottom after being extremely oversold. But the recovery has been weak, and overhead resistance at the $40 strike should keep the shares in check. Also of concern is that DV is the most highly rated educational company among analysts, making it particularly vulnerable to downgrades. And lately options players seem to prefer calls to puts, which adds more optimism to a stock that has plenty of headwinds. Optimism amid questionable fundamentals and technicals is a bearish combination. Play the DV Oct 40 Puts. |  Double-Digit Profits No Matter What the Market Does |
Comments are currently unavailable. Please check back soon.