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

Geo Group (GEO) closed at $6.74 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.24%.

Coming into today, shares of the private prison operator had lost 10.46% in the past month. In that same time, the Finance sector gained 0.13%, while the S&P 500 gained 4.09%.

Wall Street will be looking for positivity from GEO as it approaches its next earnings report date. In that report, analysts expect GEO to post earnings of $0.58 per share. This would mark a year-over-year decline of 12.12%. Our most recent consensus estimate is calling for quarterly revenue of $561.18 million, down 4.53% from the year-ago period.

GEO's full-year Zacks Consensus Estimates are calling for earnings of $2.29 per share and revenue of $2.25 billion. These results would represent year-over-year changes of -8.76% and -4.32%, respectively.

Investors might also notice recent changes to analyst estimates for GEO. 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. 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, 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 is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note GEO's current valuation metrics, including its Forward P/E ratio of 2.92. For comparison, its industry has an average Forward P/E of 18.51, which means GEO is trading at a discount to the group.

Meanwhile, GEO's PEG ratio is currently 0.29. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 3.04 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% 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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