Recession-proof stock #1: ITT Educational Services (ESI)

Filed under: Stocks to Buy, Recession, Best Stocks for 2009

One group of stocks to own during a recession is the education space, and my favorite name is ITT Educational Services (NYSE: ESI).

With unemployment rising, workers having difficulty finding jobs turn to education as a way to improve prospects.

With the growth of the Internet, the educational space has changed over the years. Brick-and-mortar schools have fallen behind the online degree providers. With a cost-effective and flexible program, online schools have been experiencing solid growth during this recession.

Recently these stocks have come under fire as investors question the availability of student loans. Shares are also suffering as momentum buyers speculate that the bull-run in the group is due to stall.

I would use the weakness to acquire shares of ESI at these prices. The unemployment numbers are likely to get worse before they get better, and that is a positive for online education.

Jamie Dlugosch is a contributor to InvestorPlace.com.

Recession-proof stock #1: ITT Educational Services (ESI) originally appeared on BloggingStocks on Sat, 28 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

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