Apollo Group is a private education provider. The Company offers educational programs and services both online and on-campus at the undergraduate, master’s and doctoral levels through its wholly owned subsidiaries, The University of Phoenix; Institute for Professional Development; The College for Financial Planning Institutes Corporation, and Meritus University.
Apollo Group’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the security is cheap with a PER of 8.47x for 2012 and 9x for 2013. Besides, EV/Sales is low with a ratio at 0.62x for this year. At least, the Surperformance rating shows the quality of this company.

Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 26.04 area. Apollo Group Inc should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards USD 31.6 and by extension towards USD 36.6.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Apollo Group in order to benefit from the USD 26 support area. A first target price will be the USD 31.6 resistance, ie a potential of 12.4%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of USD 31.6 would validate a bullish trend in order to aim a higher target price.