4-Star Bargain Stocks Set to Bounce Back: Bridgepoint Education

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Bridgepoint Education (NYS: BPI) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Bridgepoint and see what CAPS investors are saying about the stock right now.

Bridgepoint facts

Headquarters (Founded)

San Diego, Calif. (1999)

Market Cap

$520.9 million

Industry

Education services

Trailing-12-Month Revenue

$970.8 million

Management

Co-Founder/CEO Andrew Clark
CFO Daniel Devine

Return on Equity (Average, Past 3 Years)

59.5%

Cash / Debt

$340.2 million / $0

Competitors

Apollo Group (NAS: APOL)
Corinthian Colleges
(NAS: COCO)
DeVry
(NYS: DV)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 520 members who have rated Bridgepoint believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star jwray01, tapped Bridgepoint as a particularly tempting turnaround opportunity:

The price is ridiculously low relative to earnings, the balance sheet, and past earnings growth. [On the other hand] there are a bajillion law firms piling on  with class action lawsuits against them relating to their alleged concealment of problems with accreditation. ... Lack of accreditation will block federal student aid. ... But probably the accreditation hurdle is a temporary setback. ... This company is completely debt-free ... with a ginormous pre-tax profit margin before this fiasco, so they would have a good chance of a successful turnaround.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Bridgepoint may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article 4-Star Bargain Stocks Set to Bounce Back: Bridgepoint Education originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Bridgepoint. Motley Fool newsletter services recommend Bridgepoint. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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