Geo Group Inc. (GEO): Today's Featured Diversified Services Winner

Geo Group ( GEO) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Geo Group rose $1.61 (7.8%) to $22.14 on heavy volume. Throughout the day, 1.3 million shares of Geo Group exchanged hands as compared to its average daily volume of 633,100 shares. The stock ranged in a price between $20.11-$22.52 after having opened the day at $20.29 as compared to the previous trading day's close of $20.53. Other companies within the Diversified Services industry that increased today were: Rainmaker Systems ( RMKR), up 11.6%, Career Education Corporation ( CECO), up 8.7%, Bioanalytical Systems ( BASI), up 6.8%, and TMS International ( TMS), up 6.8%.

The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, mental health, residential treatment, and re-entry facilities in the United States, Australia, South Africa, the United Kingdom, and Canada. Geo Group has a market cap of $1.28 billion and is part of the services sector. The company has a P/E ratio of 17, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Friday. Currently there are six analysts that rate Geo Group a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Geo Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, American Learning ( ALRN), down 8.2%, General Employment ( JOB), down 7%, SoundBite Communications ( SDBT), down 6.7%, and Edgar Online ( EDGR), down 6.5%, were all losers within the diversified services industry with Weight Watchers International ( WTW) being today's diversified services industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).
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