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Geo Group (GEO) Gains As Market Dips: What You Should Know

In the latest trading session, Geo Group (GEO) closed at $7.70, marking a +0.52% move from the previous day. This change outpaced the S&P 500's 1.51% loss on the day. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the private prison operator had lost 9.78% over the past month, lagging the Finance sector's loss of 9% and the S&P 500's loss of 9.52% in that time.

Investors will be hoping for strength from Geo Group as it approaches its next earnings release. The company is expected to report EPS of $0.56, down 13.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $605.85 million, up 8.72% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.44 per share and revenue of $2.35 billion, which would represent changes of -1.61% and +4.1%, respectively, from the prior year.

Any recent changes to analyst estimates for Geo Group should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Geo Group currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Geo Group is holding a Forward P/E ratio of 3.15. This represents a discount compared to its industry's average Forward P/E of 11.33.

It is also worth noting that GEO currently has a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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