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

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Geo Group (GEO - Free Report) closed at $7.55 in the latest trading session, marking a -0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.

Prior to today's trading, shares of the private prison operator had lost 20.65% over the past month. This has lagged the Finance sector's loss of 11.27% and the S&P 500's loss of 3.9% in that time.

Geo Group will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.49, down 23.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $605.6 million, up 9.87% from the year-ago period.

GEO's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $2.46 billion. These results would represent year-over-year changes of -16.67% and +3.64%, respectively.

Any recent changes to analyst estimates for Geo Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

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 #5 (Strong Sell).

Investors should also note Geo Group's current valuation metrics, including its Forward P/E ratio of 3.6. This valuation marks a discount compared to its industry's average Forward P/E of 10.71.

It is also worth noting that GEO currently has a PEG ratio of 0.36. 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.37 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 165, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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