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In the final months of the Obama administration, the Justice Department announced it would end the use of private prisons. In the first month of the Trump administration, the rule was rescinded.

In a memo signed February 21, but released to the public late Thursday, the new U.S. Attorney General, Jeff Sessions, rescinded the order. Sessions decided not to phase out the use of private prisons by the federal government and that bodes well for prison stocks. In August 2016, less than an hour after the news broke, shares of Geo Group, Inc. and Corecivic (formerly known as, Corrections Corp. Of America) imploded, losing over 35% and 25% respectively. CoreCivic Inc. and Geo Group Inc. are two of the largest for-profit prison operators in the country. Since the election, both stocks have surged on renewed hopes the order would be rescinded. Geo Group hit a new record high and shareholders of both stocks are very happy the long-term contracts are still in place.

Here’s A Closer Look At The CXW’s Revenue & Earnings:

courtesy of Thomson Reuters Eikon

courtesy of Thomson Reuters Eikon:

Here’s A Closer Look At The GEO’s Revenue & Earnings

As you can see, for the most part, revenue and sales are steadily growing for these stocks because the number of prisoners is steadily growing.

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