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

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In the latest trading session, Geo Group (GEO - Free Report) closed at $10.61, marking a -1.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.

Heading into today, shares of the private prison operator had lost 9.54% over the past month, lagging the Finance sector's loss of 3.71% and the S&P 500's loss of 5.98% in that time.

Wall Street will be looking for positivity from Geo Group as it approaches its next earnings report date. The company is expected to report EPS of $0.55, down 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $605.1 million, up 8.53% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Geo Group. These revisions help to show the ever-changing nature of 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Geo Group is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Geo Group has a Forward P/E ratio of 4.56 right now. For comparison, its industry has an average Forward P/E of 11.53, which means Geo Group is trading at a discount to the group.

Investors should also note that GEO has a PEG ratio of 0.46 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 1.98 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 196, which puts it in the bottom 23% 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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