Important note

This AI stock analysis for Geo Group 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!

Geo Group - AI Stock Analysis

Analysis generated July 3, 2025

Geo Group is a prominent player in the correctional, detention, and residential treatment services industry. Founded in 1984, Geo Group has expanded its operations globally, providing correctional services to government clients worldwide. The company operates numerous facilities and is known for employing technological innovations to manage its extensive portfolio efficiently.

Fundamental Analysis

The Geo Group reported revenue of $605 million for the last quarter. This figure represents a 0.51% decrease compared to the prior quarter, indicating a slight contraction. However, when compared to the same quarter last year, the revenue dipped by a less significant 0.17%, suggesting a stable revenue stream over the longer term.

The net income for the most recent quarter stands at $20 million. This is a robust increase of 26.25% compared to the previous quarter, showcasing positive growth in profitability. Nonetheless, it's important to note that on a year-over-year comparison, net income dropped by 13.72%, which is a point for concern, highlighting some volatility in earnings.

EBITDA for the last quarter was recorded at $0, marking a considerable 100% decrease both from the previous quarter and the same quarter last year, signaling financial distress or substantial one-time expenses. Observing the current price-to-earnings (P/E) ratio, it stands at 111.95, suggesting the stock might be overvalued. Such a high P/E ratio often signifies a bearish outlook if the earnings do not catch up with the stock price.

Technical Analysis

Geo Group's stock is currently priced at $24.63. This marks a decrease of 8.54% compared to a month ago, which may unsettle short-term investors. However, over a year, the stock has surged by 64.31%, indicating a strong bullish trend in the long run.

The Simple Moving Average over the last 10 days (SMA10) is 23.88, slightly higher than the previous SMA10 of 23.77, pointing towards an upward trend in stock price movement. The current Relative Strength Index (RSI) is 68.2, indicating a neutral condition but close to the overbought threshold, suggesting a potential price correction might occur in the near future.

Alternative Data Analysis

Examining job postings and employee sentiment, Geo Group currently has 877 open positions, up by 24% in the last few months. This growth in job openings signals expansion and a potentially healthy corporate outlook. The business outlook among employees is neutral but has improved by 9% recently, indicating increased internal optimism.

In terms of customer acquisition, Geo Group's estimated webpage visitors stand at 71,000, reflecting an 18% increase over the past few months. This uptick suggests a potentially increasing customer base and higher engagement levels. However, the engagement on their Twitter page remains stagnant with 3,100 followers and no significant change recently.

AltIndex's AI score, which assesses stock potential using a combination of fundamental, technical, and alternative data, gives Geo Group a score of 45. This score translates to a 'hold' signal, implying investors should neither buy nor sell aggressively based on current data.

Conclusion

Geo Group displays mixed signals with some factors pointing towards growth and stability, while others raise concerns. The company shows strength in long-term stock price trends and increasing net income quarter-over-quarter. However, short-term revenue dips and a startling P/E ratio suggests potential overvaluation and risk.

The expansion in job postings and improved employee outlook are positives, indicating growth potential. Higher webpage traffic aligns with this, although stagnant social media engagement requires attention. Given the AI score of 45, a cautious approach would be to hold the stock and monitor for future developments before making more aggressive investment decisions.

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.