Geo Group (GEO) closed at $11.66 in the latest trading session, marking a +1.39% move from the prior day. This change outpaced the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Prior to today's trading, shares of the private prison operator had gained 7.28% over the past month. This has lagged the Finance sector's gain of 7.81% and outpaced the S&P 500's gain of 6.27% in that time.
Wall Street will be looking for positivity from Geo Group as it approaches its next earnings report date. This is expected to be February 14, 2023. On that day, Geo Group is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 15.38%. Meanwhile, our latest consensus estimate is calling for revenue of $605.1 million, up 8.53% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Geo Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 is currently a Zacks Rank #3 (Hold).
In terms of valuation, Geo Group is currently trading at a Forward P/E ratio of 4.89. For comparison, its industry has an average Forward P/E of 12.65, which means Geo Group is trading at a discount to the group.
Investors should also note that GEO has a PEG ratio of 0.49 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 was holding an average PEG ratio of 2.13 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% 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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