Geo Group (GEO) closed at $7.61 in the latest trading session, marking a -1.55% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.72%. Elsewhere, the Dow lost 1.62%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the private prison operator had lost 4.21% in the past month. In that same time, the Finance sector lost 7.22%, while the S&P 500 lost 9.09%.
Wall Street will be looking for positivity from Geo Group as it approaches its next earnings report date. In that report, analysts expect Geo Group to post earnings of $0.56 per share. This would mark a year-over-year decline of 13.85%. Our most recent consensus estimate is calling for quarterly revenue of $605.85 million, up 8.72% from the year-ago period.
GEO's full-year Zacks Consensus Estimates are calling for earnings of $2.44 per share and revenue of $2.35 billion. These results would represent year-over-year changes of -1.61% and +4.1%, respectively.
Investors might also notice recent changes to analyst estimates for Geo Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Geo Group is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Geo Group is currently trading at a Forward P/E ratio of 3.17. Its industry sports an average Forward P/E of 11.78, so we one might conclude that Geo Group is trading at a discount comparatively.
Meanwhile, GEO's PEG ratio is currently 0.32. 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. GEO's industry had an average PEG ratio of 2.03 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 73, which puts it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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