Private Prison Stocks Surge After Trump's Election

Following Donald Trump's election victory, stocks of private prison companies like Geo Group and CoreCivic surged, with Geo Group's shares jumping by 42% and CoreCivic's by 29%. This spike is attributed to Trump's pledge for a significant crackdown on illegal immigration and mass deportations, which analysts predict will lead to increased contracts with the U.S. Immigration and Customs Enforcement (ICE). The private prison industry has seen a substantial rise in revenue from these contracts, with Geo Group alone earning $1.05 billion from ICE in 2022. Trump's administration is expected to push for additional funding for border security, further benefiting these companies. As the focus on immigration remains high, investors are betting on continued profitability for private prison operators. The trend reflects a broader economic shift, as companies tied to immigration enforcement are poised to gain from Trump's policies.