ITT Educational Services, Inc. (NYSE:ESI)

CAPS Rating: 2 out of 5

The Company is a for-profit provider of postsecondary education in the United States. It offers diploma and associate, bachelor and master degree programs at a number of institutes.

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Player Avatar morowulf (50.30) Submitted: 12/26/2011 4:15:43 PM : Outperform Start Price: $57.15 ESI Score: -3.39

Based upon historical earnings growth, I think this stock should be valued near $259.25 using discounted cash flows over the next 5 years. This produces a safety margin of 77%. The biggest downside that I see is that it is widely shorted, which may drive the price down in the near term.

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