Geo Group (GEO) could possibly be a strong selection for traders given the corporate’s remarkably enhancing earnings outlook. Whereas the inventory has been a robust performer currently, this development would possibly proceed since analysts are nonetheless elevating their earnings estimates for the corporate.
The upward development in estimate revisions for this personal jail operator displays rising optimism of analysts on its earnings prospects, which ought to get mirrored in its inventory worth. In any case, empirical analysis reveals a robust correlation between developments in earnings estimate revisions and near-term inventory worth actions. Our inventory ranking software — the Zacks Rank — is principally constructed on this perception.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Sturdy Purchase) to a Zacks Rank #5 (Sturdy Promote), has a powerful externally-audited track record of outperformance, with Zacks #1 Ranked shares producing a median annual return of +25% since 2008.
For Geo Group, robust settlement among the many overlaying analysts in revising earnings estimates upward has resulted in significant enchancment in consensus estimates for the following quarter and full 12 months.
Present-Quarter Estimate Revisions
The earnings estimate of $0.19 per share for the present quarter represents a change of -13.64% from the quantity reported a 12 months in the past.
During the last 30 days, the Zacks Consensus Estimate for Geo Group has elevated 6.52% as a result of two estimates have moved increased in comparison with no unfavorable revisions.
Present-Yr Estimate Revisions
For the complete 12 months, the earnings estimate of $1.01 per share represents a change of +6.32% from the year-ago quantity.
The revisions development for the present 12 months additionally seems fairly promising for Geo Group, with two estimates transferring increased over the previous month in comparison with no unfavorable revisions. The consensus estimate has additionally obtained a lift over this timeframe, rising 10.15%.
Favorable Zacks Rank
The promising estimate revisions have helped Geo Group earn a Zacks Rank #1 (Sturdy Purchase). The Zacks Rank is a tried-and-tested ranking software that helps traders successfully harness the facility of earnings estimate revisions and make the precise funding resolution. You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our analysis reveals that shares with Zacks Rank #1 (Sturdy Purchase) and a couple of (Purchase) considerably outperform the S&P 500.
Backside Line
Traders have been betting on Geo Group due to its strong estimate revisions, as evident from the inventory’s 16% achieve over the previous 4 weeks. As its earnings progress prospects would possibly push the inventory increased, you might think about including it to your portfolio immediately.
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Geo Group Inc (The) (GEO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
