Bull of the Day: The Geo Group (GEO)

The market is under pressure. The “soft landing” and “no landing” narratives are being tested. Important technical support levels like the 50-day moving average are failing left-and-right. It’s beginning to feel a lot like the bull run we’ve enjoyed since October is nearing an end.

You can do one of two things in a market like this. You can cower under your desk and ignore your statements, or you can get together a neat little shopping list and keep investing. The latter is really how the money is made in markets. You buy the dips. How low it goes doesn’t matter as much as if you stay invested or buy more.

How do you know if the stock you’re looking at is a total dud or potential hero? Earnings are the great equalizer. Stocks with strong earnings trends are likely to come out looking like champos on the other end of the dip. Finding these stocks is as easy as 1,2,3. Look for stocks that are Zacks Rank #1 (Strong Buy) stocks. Those have the strongest earnings trends over time.

Today’s Bull of the Day is one such stock. It ‘s Zacks Rank #1 (Strong Buy) The Geo Group (GEO). The GEO Groupengages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. 

Zacks Investment Research
Image Source: Zacks Investment Research

The reason for the favorable Zacks Rank is analysts all over Wall Street have been increasing their earnings estimates for the current year and next year. Over the last thirty days, two analysts have pushed up their estimates for both periods. The bullish moves have increased our Zacks Consensus Estimates for the current year from 94 cents to $1.01. Next year’s number is up from $1.28 to $1.37.

That means that current year earnings growth is now forecast to come in at 6.32%. That’s not over the top fantastic, but next year is when things really heat up. FY2025 estimates call for 35.72% growth for the year.

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Geo Group Inc (The) (GEO) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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