Geo Group (GEO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Geo Group (GEO) closed at $23.83, marking a -0.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.42%.
Heading into today, shares of the private prison operator had gained 7.91% over the past month, outpacing the Finance sector's gain of 2.14% and the S&P 500's gain of 2.2% in that time.
Wall Street will be looking for positivity from GEO as it approaches its next earnings report date. In that report, analysts expect GEO to post earnings of $0.66 per share. This would mark year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for GEO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.07% higher. GEO currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that GEO has a Forward P/E ratio of 8.92 right now. For comparison, its industry has an average Forward P/E of 15.59, which means GEO is trading at a discount to the group.
Investors should also note that GEO has a PEG ratio of 1.49 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 3.07 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 87, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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