Following the election victory, stocks for companies operating prisons and detention facilities saw significant gains. GEO Group (GEO, Financial) surged over 32%, while CoreCivic (CXW) rose more than 24%.
Analysts from Wedbush indicated that these companies could benefit as the new administration may prioritize border security, allocating substantial resources to both public and private sectors, with a focus on physical detention. Additionally, it is expected that Congressional Republicans will continue to advocate for increased funding for Immigration and Customs Enforcement (ICE) detention centers.
