Long Position in Apollo, Heaven Sent: Simon Baker

It’s been a tough few years for Apollo, but trader Simon Baker thinks the outlook is - well, looking up.

His thesis is largely pegged to Apollo's recent earnings report which showed third quarter profit fell 37% from last year.

However, the company's quarterly earnings per share, excluding items, came in well above analysts' expectations.

And at the same time, the company raised its operating earnings outlook for the fiscal year 2012.

“The stock is starting to look good,” he says. “I think education stocks may start to come back into favor,”

Looking at the numbers, for the third quarter ended May 31, 2012, the Phoenix, Arizona-based company reported net income of $134.0 million or $1.13 per share, compared to $212.4 million or $1.51 per share for the year-ago quarter.

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 26, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPC; Joe Terranova is long WFM; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long CNX; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Mike Murphy is long INTC; Mike Murphy is long TGT; Mike Murphy is long LNG; Mike Murphy is long SBUX; Mike Murphy is short WMT; Simon Baker is funds long AAPL; Simon Baker is funds long CVX; Simon Baker is funds long WFC; Simon Baker is funds long V; Simon Baker is funds long DIS

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