Here in the Cabot office, we have a generous policy of paying for continuing education for employees.  And all over the country, men and women, both employed and between jobs, are finding that a little more education is just what’s needed to move to the next level.

Many of these older students are finding what they need at for-profit schools, which tend to focus on teaching the skills needed to advance in particular careers, from nursing to computer science to business management to criminal justice.  In fact, these schools are one of the clear beneficiaries of the current recession.  Enrollments are up, and revenues and earnings are climbing.

Most important of all, their stocks are strong!  A few weeks ago, we mentioned Strayer Education (STRA), which has just pulled back to its 50-day moving average.  And today, I want to recommend another stock, the king of the industry, Apollo Group (APOL).

Apollo was a great growth stock from its 1994 IPO all the way to its peak in early 2004.  Then growth slowed, shareholders jumped ship, and the stock fell all the way from 98 to 33.  But the company kept growing!  In fact Apollo has a perfect 10-year record of growth of both revenue and earnings.

Here’s what editor Michael Cintolo wrote in a recent issue of Cabot Top Ten Report.

“Apollo is committed to serving the needs of working adults through its subsidiaries University of Phoenix, Institute for Professional Development, College for Financial Planning and Western International University. With more than 360,000 students, Apollo is the giant in for-profit higher education, offering associate, undergraduate and graduate degrees both online and in 385 facilities in North and South America. The company got into a little hot water with the SEC in 2004, and the loss of focus resulted in an earnings slowdown in late 2006. But earnings are back on track, the SEC is happy and the company has a new CEO to guide it through a period when demands on its services are sure to be at a record high.”

I look at Apollo today and I see a company whose revenues grew 16% to $831 million in the third quarter, while earnings jumped 15% to $0.77 per share.  Equally important, analysts increased their estimates of future earnings.  Profit margins are a robust 14.8%.  And Apollo has no long-term debt.

The stock climbed from 38 in March to a recent high of 77, and it’s recently been consolidating its gains in the low-70s, while its 25-day moving average catches up.  In a bull market, it might be a decent buy around 70, but in today’s crazy news-driven market, waiting and watching is a more prudent approach.