Geo Group

Dividend Yield: 5.80%

Geo Group (NYSE: GEO) shares currently have a dividend yield of 5.80%.

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. The company has a P/E ratio of 13.13.

The average volume for Geo Group has been 480,400 shares per day over the past 30 days. Geo Group has a market cap of $2.5 billion and is part of the diversified services industry. Shares are up 16.6% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Geo Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 52.0% when compared to the same quarter one year prior, rising from $22.50 million to $34.21 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GEO GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 41.17% and other important driving factors, this stock has surged by 43.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GEO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GEO GROUP INC has improved earnings per share by 41.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, GEO GROUP INC increased its bottom line by earning $2.33 versus $1.11 in the prior year. For the next year, the market is expecting a contraction of 26.2% in earnings ($1.72 versus $2.33).

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