
Last year, I wrote an article about the various publicly traded colleges and universities. But there are other ways to play the education market.
Most high schools and colleges are starting their fall sessions in August and September, so it might be worth taking a closer look at back-to-school stocks.
One of the biggest school-related expenses is a computer, with the primary choices being Apple (AAPL) and Dell (DELL). The primary choice for printers is Hewlett Packard (HPQ). And whether students use Macs or PCs, they all seem to use Microsoft Office, made by Microsoft (MSFT).
Apple has a price-to-earnings ratio of 36 and a price/earnings-to-growth ratio of 1.28. Dell has a forward P/E of 17 and a PEG of 1.14. Hewlett-Packard has a P/E of 14 and a PEG of 0.89, and it pays a small yield of 0.8%. Microsoft has a P/E of 16, a PEG of 1.24 and a yield of 1.7%.
The other big going-off-to-school expense is clothing. The Quiksilver (ZQK) brand is the clothing of choice for students who enjoy skiing, snow boarding or surfing. The stock has a forward P/E of 9 and a PEG of 0.89.
Other students like Under Armour (UA), which develops and markets microfiber apparel, such as sweats, T-shirts, socks and baseball caps. The stock has a P/E of 30 and a PEG of 0.93. Nike (NKE), the famous athletic shoe manufacturer, is another company that benefits from the parents' clothing budget. The stock has a P/E of 16, a PEG of 1.1 and a yield of 1.6%.
In public high schools, textbooks are usually purchased by school districts, but for college students, they are often a necessary -- and large -- expense. One of the recipients of these expenditures is Pearson (PSO), the U.K.-based publisher of textbooks and related educational materials for colleges and universities, which has a P/E of 17, a PEG of 1.22 and a fairly high yield of 7.1%. Another publisher of textbooks is John Wiley & Sons (JW.A), which also publishes technical journals, medical journals and integrated online learning resources for college students. It has a P/E of 18 and a yield of 1.2%.
Blackboard (BBBB) markets and services online teaching and learning environment software and has a huge share of the college and university market. Professors use Blackboard as a repository for the class syllabus, assignments and homework, presentations, tests and discussion boards. Although the stock has an extremely high P/E of 145, the PEG is 2.09.
For a list of all 10 of the back-to-school stocks in an Excel format that you can sort, add to and change, go to WallStreetNewsNetwork.com.
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