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In the latest trading session, Geo Group (GEO) closed at $7, marking a -0.14% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.7%.
Heading into today, shares of the private prison operator had lost 11.38% over the past month, lagging the Finance sector's loss of 1.03% and the S&P 500's loss of 0.27% in that time.
GEO will be looking to display strength as it nears its next earnings release. On that day, GEO is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 4.48%. Meanwhile, our latest consensus estimate is calling for revenue of $551.53 million, down 4.77% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $2.24 billion. These totals would mark changes of +2.39% and -4.89%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GEO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. GEO is currently a Zacks Rank #2 (Buy).
In terms of valuation, GEO is currently trading at a Forward P/E ratio of 2.73. For comparison, its industry has an average Forward P/E of 17.6, which means GEO is trading at a discount to the group.
Meanwhile, GEO's PEG ratio is currently 0.27. 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 2.96 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Geo Group Inc The (GEO) : Free Stock Analysis Report
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