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

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Geo Group closed the most recent trading day at $23.03, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 1.66%.

Coming into today, shares of the private prison operator had gained 9.97% in the past month. In that same time, the Finance sector lost 2.6%, while the S&P 500 lost 2.76%.

Wall Street will be looking for positivity from GEO as it approaches its next earnings report date. The company is expected to report EPS of $0.66, up 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $610.10 million, up 4.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.68 per share and revenue of $2.48 billion. These totals would mark changes of +8.5% and +6.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GEO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.07% higher within the past month. GEO is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note GEO's current valuation metrics, including its Forward P/E ratio of 8.45. For comparison, its industry has an average Forward P/E of 15.35, which means GEO is trading at a discount to the group.

Investors should also note that GEO has a PEG ratio of 1.41 right now. 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 2.99 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 85, which puts it in the top 34% 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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