The GEO Group (GEO)

The developer of immigration processing centres in the US and internationally recently reported a 63% increase in net income with a 15% increase in revenues.  Management feels confident to raise guidance on both for the balance of the year.  It trades at 19x earnings, 3x book and supports a ROE 19%.  Cash reserves are growing as debt is retired and shares bought back.  We recommend setting a stop-loss at $26, looking to achieve $37 -- upside potential of 18%.  Yield 0%

The GEO Group, Inc. engages in the ownership, leasing, and management of secure facilities, reentry facilities, and processing centers in the United States, Australia, and South Africa. It operates through four segments: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services. The company provides counseling, education, and treatment for alcohol and drug abuse problems at various facilities; and compliance technologies for monitoring services, and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. It also offers secure facility management services, including security, administrative, rehabilitation, education, and food services at secure services facilities; reentry services comprising supervision of individuals in community-based programs and reentry centers, and provision of temporary housing, programming, employment assistance, and other services; and supervision and reporting services that improves the participation of non-detained aliens in the immigration court system. In addition, the company provides secure transportation services; and rehabilitation services, such as evidence-based, including cognitive behavioral treatment and post-release services, as well as academic and vocational classes in life skills and treatment programs under the GEO Continuum of Care platform; and develops new facilities based on contract, as well as designs, constructs, and finances the facilities. The GEO Group, Inc. was founded in 1984 and is headquartered in Boca Raton, Florida. Social media mentions are up 233% in the past 24h.