Geo Group Inc. (GEO): Diversified Services' Featured Winner Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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 down 0.2%. By the end of trading, Geo Group rose 48 cents (1.3%) to $38.18 on light volume. Throughout the day, 418,818 shares of Geo Group exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $37.51-$38.20 after having opened the day at $37.63 as compared to the previous trading day's close of $37.70. Other companies within the Diversified Services industry that increased today were: Education Management Corporation ( EDMC), up 14.2%, SuperMedia ( SPMD), up 13.1%, CIBT Education Group ( MBA), up 12.8%, and EnviroStar ( EVI), up 5.4%.
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The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, and re-entry facilities, and the provision of community based services and youth services in the United States, Australia, South Africa, the United Kingdom, and Canada. Geo Group has a market cap of $2.73 billion and is part of the services sector. The company has a P/E ratio of 16.1, below the S&P 500 P/E ratio of 17.7. Shares are up 33.7% year to date as of the close of trading on Thursday. 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 compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Carriage Services ( CSV), down 6.7%, USA Technologies ( USAT), down 5.7%, Bioanalytical Systems ( BASI), down 5.5%, and Willdan Group ( WLDN), down 5.5%, were all laggards within the diversified services industry with Jacobs Engineering Group ( JEC) being today's diversified services industry laggard.

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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