For-profit education stocks have surged on expectations that President-elect Donald Trump and a Republican Congress may ease regulations imposed on the industry by the Obama administration, Barron’s said in a report.
Stocks such as Grand Canyon Education (LOPE), DeVry Education Group (DV), and Capella Education (CPLA) rose about 14% last week. Trump won an upset victory in Tuesday’s presidential election.
Jeff Silber at BMO Capital Markets said Trump’s election could be good news for for-profit education companies, according to Barron’s.
A federal court trial in San Diego is set to begin on Nov. 28 over claims by former students of now-defunct Trump University that they were defrauded by a series of real estate seminars. A Trump lawyer has requested that the trial be delayed until after Trump’s inauguration on Jan. 20. Trump denies the students’ allegations.