Could this prison stock make a jailbreak move soon? Today’s pre-earnings small-cap pick is Geo Group (NYSE:GEO), a company that can thrive when it feels like the world is breaking down. A major event is about to take place for Geo Group, and I am bullish on GEO stock for the remainder of this year.
Geo Group operates prisons and mental health facilities in the U.S. and on several other continents. Tens of thousands of people are “housed” (to put it politely) in Geo Group’s facilities around the world. You might not want to think about the need for prisons, but there’s an investment opportunity here, as Geo Group is about to release a slew of crucial data.
GEO Stock Traders: Mark Your Calendar for This Date
Here’s what you need to know. Geo Group is getting ready to release its fourth-quarter 2023 earnings results on February 15 before the market opens. Wall Street only expects Geo Group to have earned $0.17 per share for the quarter. That’s the lowest quarterly EPS estimate in a while, so it’s a chance for Geo Group to deliver a positive surprise.
Furthermore, Geo Group has a prominent analyst firm in its corner. Specifically, Northland identified Geo Group as a “2024 Top Pick.” According to TheFly, Northland believes that Geo Group is “well positioned to benefit from increased demand for its diversified government service offerings with ICE, USMS, state correctional agencies, and reentry services.”
On the financial front, Geo Group’s position of cash and cash equivalents grew to $141.02 million as of September 2023. Moreover, Geo Group appears to be gradually shrinking its total debt and net debt. In any case, the Northland analysts assigned an Outperform rating along with a $14 price target on GEO stock, which implies a fair amount of upside from the current share price.
Is GEO Stock a Buy, According to Analysts?
On TipRanks, GEO comes in as a Strong Buy based on three unanimous Buy ratings assigned by analysts in the past three months. The average GEO stock price target is $14.33, implying 27% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell GEO stock, the most accurate analyst covering the stock (on a one-year timeframe) is Joe Gomes of Noble Financial, with an average return of 12.47% per rating and a 59% success rate. Click on the image below to learn more.
Conclusion: Should You Consider GEO Stock?
Maybe you’ve never thought about investing in a prison stock before. Yet, Geo Group is worth a look, as the company has an international presence as well as a decent capital position.
Besides, Northland presented a compelling bullish argument for GEO stock. Consequently, I’m considering a long position before the company releases its Q4-2023 earnings results.
