American Public Education (APEI) differentiates itself from other for-profit education providers through its low-cost tuition, appealing to a generation of students that scrutinizes the value proposition of education more than its predecessors, says Jeffrey M. Silber, Managing Director and Senior Analyst at BMO Capital Markets Corp.
“American Public also has a differentiated strategy. They are the low-price provider in the space. If you go to their undergraduate school, which is where most of their students attend, they price their product at $250 per credit hour, and that’s in line with the tuition assistance levels from the United States military. Most other schools have their retail price, so to speak, and their military discount; this school offers their military discount to the masses,” Silber said.
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Silber says APEI has found a strategy that has allowed it stay ahead of the pack, proving an overall resilient name in the education space despite all the headwinds the space has faced in recent years.
“When students are really questioning the value proposition, if you can go for a lesser-cost school, that’s certainly a way to attract students, and that’s American Public‘s angle. So [that’s a stock] that we’ve really been recommending throughout the entire downdraft,” Silber said. “There have been some hiccups here and there, but [APEI has] definitely outperformed the rest of the group.”
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