3 Education Stocks For Your Portfolio: ITT Educational Services, Inc. (ESI), Chegg Inc. (CHGG), Sibling Group Holdings Inc. (SIBE)


Atlanta, GA – Scibility Media – 11/06/2014.

ITT Educational Services, Inc. (NYSE:ESI) stock continues to be a revelation in the education sector having soared by 144.9% for the month. The impressive run come’s in the wake of Bank of America reiterating an underperform rating on the company with a share price target of $8 up from $7. Better than expected quarterly earnings have also raised sentiments about the company’s prospects among analysts in Wall Street.

ITT Education Services Offset Liquidity Concerns

ITT Educational Services, Inc. (NYSE:ESI) sentiments in Wall Street have also improved after the incorporation of $90 million for a letter of credit leaving approximately $100 million in unrestricted cash. The pampered cash balance according to investors should be enough to mitigate liquidity concerns.

ITT Educational Services, Inc. (NYSE:ESI) impressive run in the market is on the other hand, under threat after a class action lawsuit was initiated by Levi & Korsinsky LLP. The lawsuit is on behalf of investors who purchased the company’s shares between February 26, 2013 and September 18, 2014. The company is accused of providing misleading statements as well as failing to provide some essential facts about the company’s operations.

Failure to disclose some of the information according to the firm could have had an impact on the company’s operations as well as future prospects. It awaits to be seen if the ongoing class action case will have any impact on the company’s performance going forward. Levi Korsinsky argues that if investors incurred losses from ITT Education Services they may request the court to appoint them as lead plaintiffs.

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Chegg Inc. (NYSE:CHGG), unlike ITT Educational Services, Inc. (NYSE:ESI), has been a disappointment in the market and is consequently down by 9.18% for the month. The decline comes in the wake of Bank of America Corp (NYSE:BAC) Merrill Lynch reducing the company’s revenue estimates for the year. The bank now expects Chegg to post revenues of $303.8 million down from a high of $312.6 million for 2014. The bank maintains a buy rating on the stock.

Bank of America decision to lower its revenue estimates comes as a surprise considering Chegg Inc. (NYSE:CHGG) recently posted record revenues for the third quarter. The student first-learning platform continues to register accelerated growth attributed to growth in the digital business. Revenue for the third quarter came in at $81.5 million representing a 32% growth from the third quarter of 2013.

Chegg Inc. (NYSE:CHGG) has already entered into a partnership agreement with Blackboard Inc. a partnership it believes will go a long way in improving student’s outcome through high quality and affordable learning services. Despite the decline in the market, Chegg Inc. (NYSE:CHGG) remains focused on delivering powerful learning services to millions of students and teachers. As part of the partnership, Chegg Inc. (NYSE:CHGG)’s learning solutions will now be made available to faculty members as well students to use within Blackboard learning environment.

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BloomBoard Inc. runs a platform that empowers teachers and administrators to personalize their professional development. BloomBoard’s push to bolster its online professional resource library has seen it enter into an agreement with Education technology holding company, Sibling Group Holdings Inc. (OTCMKTS:SIBE), for the provision of material to supplement its library. The partnership with BloomBoard is a big milestone for Sibling Group Holdings as it has not pursued any additional markets for its professional development tools.

Sibling Group Holdings Inc. (OTCMKTS:SIBE) expects the ongoing partnership with BloomBoard to be of great benefit in developing new infrastructure that should allow it attain new revenue streams going forward. The product line and the ongoing partnership according to Chief academic officer Jed Friedrichsen should allow more teachers to implement online teaching in their classrooms.

Sibling Expansion Drive

Teachers are already using Bloomboard platform to set their own learning goals. As the platform is expected to expand to over 18 states and be used by over 250,000 teachers. Sibling Group Holdings Inc. (OTCMKTS:SIBE) would be supplement the platforms libraries while also making it user-friendly to all the users.

Sibling Group Holdings Inc. (OTCMKTS:SIBE) continues to acquire a number of educational technology businesses and components as it strives to deliver a complete solution from curriculum to course certification. Earlier in the year the company acquired blended schools network that currently handles the needs of 160 school districts.

Do you have questions? Ask SIBE

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