Donald Trump’s Impact on Finance: The Surge of Private Prison Stocks CXW and GEO
Why Private Prison Stocks Are Soaring Following Trump’s Re-election
Quite ironically, once Trump Media (NASDAQ: DJT) is excluded, one would be hard-pressed to find a stock that hasn’t seen a massive rally in the wake of Donald Trump’s reelection as the President of the United States.
A relatively overlooked set of companies whose shares have also seen stellar surges are the controversial American private prison firms.
Performance of CoreCivic (CXW) and Geo Group (GEO)
- CXW stock rose 25.60% to its latest closing price of $22.08.
- GEO stock climbed 13.63% to $24.43.
- This one-session performance came at the back of impressive five-day rises – 58.85% for CXW and 59.31% for GEO.
Why Prison Stocks Are Surging After Trump’s Reelection
The immediate reading of the prison stock rally is that the Republicans have positioned themselves as ‘tough on crime’. The number of incarcerated persons under the Trump administration is likely to increase.
Potential Impacts of Mass Deportation Policies
- The Trump administration's pledge to execute mass deportations could increase the prison population significantly.
- Privately held firms like CoreCivic and Geo Group are likely to benefit directly from increased incarceration rates.
Financial Implications for Investors
The significant involvement of private prison companies could turn much of the costs levied upon taxpayers into corporate revenue, thereby increasing the valuation of firms like CXW and GEO.
Conclusion: A Profitable Future for Private Prisons?
With political support and potential increases in demand for services, private prison stocks are positioned for a profitable future under Trump’s administration.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.