Important note

This AI stock analysis for CoreCivic is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

CoreCivic - AI Stock Analysis

Analysis generated February 7, 2025

CoreCivic, Inc. is a diversified government solutions company with the scale and experience needed to solve tough government challenges in cost-effective ways. CoreCivic leverages its experience and infrastructure to provide a broad range of services to government partners that encompass three distinct business lines: CoreCivic Safety, a national leader in high-quality corrections and detention management; CoreCivic Properties, a wide-reaching owner and manager of real estate used by government agencies; and CoreCivic Community, which provides a growing network of residential reentry centers to help tackle America’s recidivism crisis.

Fundamental Analysis

In the latest quarter, CoreCivic reported revenue of $492 million. This marks a modest increase of 0.30% compared to the previous quarter, which could be interpreted as a sign of stable growth. Compared to the same quarter last year, revenue increased by 1.62%, showing a positive year-over-year trend.

The company's net income for the last quarter was $21 million, reflecting an 11.30% increase from the previous quarter. Compared to the same quarter last year, net income ascended by an impressive 51.86%, indicating robust profitability.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $78 million, an increase of 2.09% from the prior quarter. Year-over-year, EBITDA also saw growth of 12.12%, reinforcing the positive revenue and income trends.

However, the current price-to-earnings (P/E) ratio stands at 27.9, which may be considered high. This could potentially indicate overvaluation, a bearish sign. Furthermore, the recent insider selling activity in the company suggests a lack of confidence from those most knowledgeable about CoreCivic’s future prospects.

Technical Analysis

Today’s stock price is $18.45, which represents a significant 15.83% decrease compared to a month ago. In the short term, this could be a red flag for investors. However, compared to the same time last year, the stock price has increased by 23.00%, suggesting a long-term positive trend.

The current short-term moving average (SMA10) is $19.80, which is lower than the previous SMA10 of $19.97, potentially signaling a downward trend in price movement. The Relative Strength Index (RSI) is at 29.8, indicating that the stock may be oversold and could be poised for a potential bullish reversal.

Alternative Data Analysis

CoreCivic has recently increased its number of job postings to 375, reflecting a 15% rise over the past couple of months. This is a healthy sign that the company is looking to grow and expand. However, employee sentiment remains low, with only 38% of employees holding a positive outlook. Despite this, there has been a 6% improvement in employee sentiment recently, which is encouraging.

Customer acquisition data shows that CoreCivic's website has attracted an estimated 85,000 visitors, a 21% increase over the past couple of months. This uptick in web traffic is a bullish indicator as it suggests a potential increase in customers. On the social media front, CoreCivic maintains 1,100 followers on Instagram and 1,800 followers on Twitter, both of which have seen no meaningful changes in the last couple of months.

Moreover, AltIndex’s AI score for CoreCivic stands at 37, which is a sell signal. This combines various data points from fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

CoreCivic presents a mixed bag of investment signals. On the one hand, the company shows steady revenue growth, a significant increase in net income, and strong EBITDA margins, all suggesting solid core fundamentals. On the other hand, a high P/E ratio and insider selling activity could be potential red flags for investors.

Technically, the stock has displayed short-term bearish trends, though the RSI suggests a potential for a bullish reversal. Alternative data highlights an increase in job postings and web traffic, albeit low employee sentiment. Given these conflicting signals and the low AI score, investors may want to exercise caution. A recommendation might be to "Hold" or "Proceed with Caution" in investing in CoreCivic, paying close attention to upcoming earnings reports and market signals for more clarity.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.