Trade school stocks soar as demand for skilled labor rises
Judy Lagrou
August 5, 2025
(Bloomberg) — 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 (LINC) and Universal Technical Institute (UTI) — 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.
“I just point to the 150,000 job openings for electricians, welders, and HVAC,” said John Barr, portfolio manager of the Needham Aggressive Growth Fund, which holds both stocks.
