Geo Group (GEO) Outpaces Stock Market Gains: What You Should Know
Geo Group (GEO) closed the most recent trading day at $23.67, moving +1.63% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.
Coming into today, shares of the private prison operator had gained 9.24% in the past month. In that same time, the Finance sector lost 0.77%, while the S&P 500 gained 0.1%.
GEO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.66, up 10% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $610.10 million, up 4.56% from the year-ago period.
GEO's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $2.48 billion. These results would represent year-over-year changes of +8.5% and +6.54%, respectively.
Investors should also note any recent changes to analyst estimates for GEO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.07% higher within the past month. GEO currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, GEO is holding a Forward P/E ratio of 8.71. This represents a discount compared to its industry's average Forward P/E of 15.42.
Investors should also note that GEO has a PEG ratio of 1.45 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 3.03 as of yesterday's close.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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