DeVry Education Group Inc.’s (DV) subsidiary — DeVry University — recently announced a partnership with Kelly Services, Inc. (KELYA), a workforce solutions provider.
Per the deal, DeVry will provide higher education opportunities to Kelly’s employees, both full time and temporary. Kelly, in return, will provide career opportunities to students and alumni of DeVry University and its Keller Graduate School of Management, particularly in the fast growing science, technology, engineering and math (STEM) industries. This should boost demand for DeVry University’s programs and, in turn, its enrollment growth.
DeVry University accounts for around 50% of the company’s revenues. It has been witnessing enrollment declines for the past few quarters as a result of overall economic downturn and lack of student confidence, which lowered demand.
In order to improve enrollment growth at DeVry University, the company is working on its marketing efforts to build brand awareness like improving marketing messages to emphasize on the University’s strong outcomes and value proposition and shifting more toward digital, social channels. In addition, DeVry University is building relationships with high schools, community colleges, corporations and government/military institutions, emphasizing on the technology aspects in all programs, enhancing the effectiveness of the recruiting process and optimizing pricing and improving affordability through scholarship programs and other operational initiatives.
Other Stocks to Consider
DeVry carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the education industry include Strayer Education, Inc. (STRA) and Capella Education Company (CPLA). Both these companies sport a Zacks Rank #1 (Strong Buy).
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