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The Best IPOs of 2015 (So Far)

By U.S. News & World Report

Popular offerings: tech, restaurant and leisure stocks

It’s been a big year for initial public offerings on Wall Street, and the best may still be to come. Fiat Chrysler Automobiles (ticker: FCAU) announced it would spin off its luxury Ferrari brand; online rental service Airbnb is looking to raise $1 billion in venture capital in preparation for a mammoth $24 billion IPO. And don’t forget Uber. The popular rideshare company is already estimated to be valued at $51 billion, and that’s before the company’s anticipated IPO.

Experts agree that IPOs can be risky and expensive for investors, although the thrill of getting in on the ground floor of the next great stock can be a powerful lure. Let’s take a look at some of the most significant IPOs so far in 2015 and see how they’re faring.

Fitbit Inc. (ticker: FIT)

IPO price: $20

Year-to-date performance: 50.27 percent

Fitbit looks like one of the feel-good IPO stories of 2015. The wearable tech company offered more than 36 million shares on June 16 in a public offering valued at $741 million. Both consumers and investors were eager to strap on earnings, as FIT stock has exploded by 50 percent so far this summer.

Wingstop Inc. (WING)

IPO price: $19

YTD performance: 2.81 percent

The fast-food chicken wing eatery pleased analysts by recording better-than-expected earnings in June, reporting earnings per share of 11 cents and revenues of $19.2 million. Even more tasty is Wingstop’s plans to open 120 restaurants this year, pushing the company to about 900 eateries. The company offered 5.8 million shares of WING stock on June 12 and so far has returned growth of nearly 3 percent. While growth hasn’t been as explosive as Fitbit, investment firm Baird is bullish in WING stock, issuing a target price between $35 and $37 per share.

Etsy Inc. (ETSY)

IPO price: $16

YTD performance: -29.34 percent

What a nightmare for investors of ETSY stock. The online marketplace for crafts and collectibles had a great debut in April, seeing its stock jump by nearly 90 percent as it offered 16.6 million shares of stock in an IPO valued at $266 million. But a troublesome earnings report in August brought investors back to earth. Etsy officials revealed that user growth has slowed despite an increase of more than 70 percent in marketing dollars. And the fact that Amazon.com (AMZN) has announced a new venture, Handmade, that directly competes with Etsy will make future growth hard to come by.

TransUnion (TRU)

IPO price: $22.50

YTD performance: 4.5 percent

TransUnion, a leading credit reporting agency, is more than managing to hold its own after offering 29.5 million shares of TRU stock in an IPO valued at $664 million on June 25. Despite lagging far behind Equifax Inc. (EFX) and Experian (EXPGY) in market capitalization, TransUnion stock has managed a solid 4.5 percent increase.

Box Inc. (BOX)

IPO price: $14

YTD performance: -39.69 percent

The online file storage and sharing company is cratering fast after a IPO on Jan. 23, in which the company offered 12.5 million shares of BOX stock in an offering valued at $175 million. BOX was hot when it started, as shares opened above $20 and closed more than 60 percent better than the company’s IPO price. But in July, the stock lock-up provision for initial investors expired and some of the company’s largest shareholders took their profits and ran, sending the stock tumbling and leaving those who bought in late holding the bag. BOX stock is down nearly 40 percent.

Party City Holding Co. (PRTY)

IPO price: $17

YTD performance: 17.24 percent

Investors in Party City, meanwhile, must be having a party after seeing PRTY stock move up more than 17 percent since the company’s successful IPO on April 16. The company offered 21.87 million shares of PRTY stock for $17 in an offering valued at $371.8 million. Of the nine brokerages following the stock, six have given it a “buy” recommendation and one a “strong buy” recommendation, with the other two rating the stock a “hold.”

GoDaddy Inc. (GDDY)

IPO price: $20

YTD performance: 0.27 percent

Known for its risqué Super Bowl commercials, the Internet domain company went public on April 1, offering 23 million shares of GDDY stock for $460 million. And while the company recently reported that its losses continued to grow — $71 million in the last quarter, compared to a loss of $43.3 million in the previous quarter — GoDaddy says it is on target to begin rolling out products in the Asia-Pacific region next year.

Shake Shack Inc. (SHAK)

IPO price: $21

YTD performance: 40.87 percent

Shake Shack’s IPO on Jan. 30 continues to be delicious for investors. The company offered 5 million shares in an offering valued at $105 million — small potatoes compared to some companies — but it’s been a win-win for the company and Wall Street. Even though the lock-up period has expired and initial investors were free to cash in their profits for more than double their initial investment, company officials are holding on to their shares. That optimistic outlook has made Wall Street bullish on SHAK stock, and made this company one of the most successful IPOs of the year.

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The Best IPOs of 2015 (So Far) originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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