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Analyst Watch: Top Picks Among Education Stocks

Stock index futures were indicating a lower open for Wall Street Thursday, in the first day of the third quarter, after both the S&P 500 and the Nasdaq posted their biggest quarterly declines since the fourth quarter in 2008 during the April through June period.

The Dow experienced its biggest quarterly drop since the first quarter of 2009.

Here's what guests on today's Squawk on the Street are watching before the opening bell:

Education Stocks

For-profit schools are much more efficient, just like UPS and Fed Ex are more efficient than the post office, according to Charlie Bobrinskoy, vice chairman and director of research at Ariel Investments.

Bobrinskoy is very bullish on the sector, especially companies like Apollo Group, which posted better-than-expected quarterly results Wednesday, helped by 13 percent growth in enrollments at its University of Phoenix, and forecast fourth-quarter earnings above analyst expectations.

He also likes:

Devry

Kelly Flynn, managing director and education analyst with Credit Suisse, says the fundamentals for this sector are still good, but is wary of continuing education regulation issues that could impact the sector.

Still, she also likes Apollo, and has hold ratings on:

Corinthian Colleges

ITT Education Services

Capella Education

Grand Canyon Education

See more of what these and other analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.

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Disclosure: Disclosure information was not immediately available.

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DV
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LOPE
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  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • “Squawk on the Street” Co-Anchor

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.