We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where The GEO Group, Inc. (NYSE:GEO) stands against the other small-cap stocks.
Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.
Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.
To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.
Security guards in uniforms patrolling an area, standing for the company’s safe and secure facilities.
The GEO Group, Inc. (NYSE:GEO)
30-day Return as of January 16, 2024: 22%
The GEO Group, Inc. (NYSE:GEO) is a publicly traded company with a mission to invest in private prisons and mental health institutions and facilities in the United States. In the past 30 days, GEO’s stock price returned 22%; an impressive feat.
On January 13, analyst firm Wedbush raised its price target for GEO to $46 from $30, maintaining an outperform rating on the stock. The analyst firm is confident in the growth potential of GEO’s electronic monitoring program. In addition to that, GEO’s position will also be fueled by Trump’s new immigration policy, given that GEO is one of the largest service providers to ICE (U.S. Immigration and Customs Enforcement).
In addition to a supportive macroeconomic environment, The GEO Group, Inc. (NYSE:GEO) announced a $70 million investment in the company’s detection capabilities on December 16, 2024, showcasing its growth potential in 2025 and beyond.
Overall GEO ranks 9th on our list of the small-cap stocks that are skyrocketing right now. While we acknowledge the potential of GEO as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
