Trade School Stocks Soar as Demand for Skilled Labor Rises

A skilled worker shortage and the federal government’s push to increase manufacturing in the U.S. are turning two for-profit vocational school operators — Lincoln Educational Services and Universal Technical Institute — into two of the hottest small cap stocks on Wall Street.

Both companies are among the 100 best-performing firms in the Russell 2000 Index over the last two years, with Universal Technical Institute’s shares leaping around 335% and Lincoln Educational Services climbing 220%, compared with the index’s 12% advance in that time. Investors and industry insiders expect the run to continue as the economy increasingly needs the skilled trade workers these companies produce.