After a topsy-turvy election night and more stable market Wednesday, one industry is standing out as a large benefactor of President-elect Donald Trump’s victory: private prisons.
Stock in CoreCivic, the biggest private prison contractor that was formerly known as the Corrections Corporation of America (ticker: CXW), was up 48 percent Wednesday, reports the Huffington Post. The GEO Group (GEO), the next biggest, was up more than 21 percent.
A Height Securities analyst note Wednesday is bullish for the private prison industry in a Trump presidency, Bloomberg says.
“Private prisons would likely be a clear winner under Trump, as his administration will likely rescind the [Department of Justice]’s contract phase-out and [Immigration and Customs Enforcement] capacity to house detainees will come under further stress,” analysts wrote.
This is a marked resuscitation for an industry that suffered a decrease in value after the Obama administration said it would eliminate using private contractors in Bureau of Prisons facilities. The decision came after the Justice Department’s Office of the Inspector General discovered that on the whole, private prisons endured more security problems and weren’t certainly saving money in the process.
Damon Hininger, CoreCivic’s CEO, was already confident in the company’s future prior to the election in a recent earnings call. He cited a bump in undocumented immigrants meant more business with ICE.
11 Stocks That Donald Trump Loves
11 Ways President Trump’s Tax Plan Could Affect Americans
More from U.S. News
11 Stocks That Donald Trump Loves
11 Ways President Trumps Tax Plan Could Affect Americans
6 Famous Flameouts of Famed Investors
Private Prison Stocks Swell on Donald Trump’s Win originally appeared on usnews.com
