3 Buy-Rated Dividend Stocks Taking The Lead: GSK, CXW, DRE
Corrections Corporation of America (NYSE: CXW) shares currently have a dividend yield of 6.30%. Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. The company has a P/E ratio of 12.09. The average volume for Corrections Corporation of America has been 774,700 shares per day over the past 30 days. Corrections Corporation of America has a market cap of $3.8 billion and is part of the real estate industry. Shares are up 0.4% year-to-date as of the close of trading on Monday. TheStreet Ratings rates Corrections Corporation of America as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CORRECTIONS CORP AMER's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has increased to $85.90 million or 42.67% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.27%.
- The net income growth from the same quarter one year ago has exceeded that of the Real Estate Investment Trusts (REITs) industry average, but is less than that of the S&P 500. The net income increased by 4.5% when compared to the same quarter one year prior, going from $45.41 million to $47.47 million.
- You can view the full Corrections Corporation of America Ratings Report.
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