GEO Group (GEO) Stock: Gaining Big on Surprise Trump Win

GEO Group REIT (NYSE: GEO)

Yesterday was a historic day in the United States. For the first time in the country’s history, someone who is not a politician, has never served in the military, and has absolutely no political background has been elected the president in the United States. As a result, the market is reacting. Among the big winners, we find GEO Group REIT. Today we’ll talk about why a Trump win is so good for the company, what we’re seeing from the stock, and what we can expect to see from GEO ahead.

Why A Trump Win Is So Good For GEO

As mentioned above, the fact that Donald Trump will be the next president of the United States is a great thing for GEO Group REIT. To understand why, it’s important that you understand what the company does and a major piece of Donald Trump’s political campaign.

  • What GEO Does – The company is a company focused in the corrections and mental health industry. In fact, the company owns and manages several jails and prisons across the United States. So, the company makes more money when more prisoners are filling their correctional facilities.
  • Here’s Why Donald Trump Is Good For GEO – There’s a big piece of Donald Trump’s campaign that lends a hand to the company. Trump has promised to rain down on crime. By putting more criminals behind bars, Trump will essentially be putting more money into GEO Group REIT’s network of correctional facilities.

At the end of the day, Donald Trump and for profit correctional facilities are like two peas in a pod. They both want more criminals arrested. They both seem to want longer periods of punishment. And the fact that Trump took office will likely lead to larger revenue and profits for GEO ahead.

What We’re Seeing From The Stock Today

As investors, one of the first things we learn is that the news move the market. Let’s face it, there are few larger pieces of news than a new president being elected in the world’s leading economy. With that president being Donald Trump, GEO Group REIT is having an incredible day. Currently (12:45), the stock is trading at $28.75 per share after a gain of $4.87 per share or 20.39% thus far today.

What We Can Expect To See Ahead

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from GEO. At the end of the day, the company is in the right industry at the right time. While there are several questions with regard to whether or not President Elect Donald Trump will follow through with his promises, if he does, this could be big for companies like GEO Group REIT.

Also, keep in mind that there are several prison stocks out there, and trump is good for all of them. Another great one you may want to look into at the moment is CXW. Also, when trading the news, think outside of the box. While this is positive for some, it’s negative for others. For instance, Corona is down 3%! What I’m getting at here is that there are tons of opportunities out there today!

What Do You Think?

Where do you think prison stocks are headed? Join the discussion in the comments below!