Jim Cramer Thinks These 13 Stocks Will Benefit From the New Administration

6. CoreCivic, Inc. (NYSE:CXW)

Number of Hedge Fund Holders: 26

Cramer discussed CoreCivic, Inc. (NYSE:CXW) stock rallying in November, especially after the election results came in. Here’s what he said:

“The two big private prison operators, GEO Group and CoreCivic have rallied 85 and 59% respectively since the beginning of November. These tend to be winners whenever the GOP is in power, but they’re rallying particularly hard this time because Trump ran on an agenda of mass deportations. Keep in mind though, GEO Group and CoreCivic roared from the 2016 election to Trump’s inauguration day in January 2017, but then they spent most of the next four years going lower. My view, legitimate thesis here, but the gains are so extreme that I worry they’re running out of upside.”

CoreCivic (NYSE:CXW) owns and operates correctional, detention, and residential reentry facilities, providing rehabilitation programs and government real estate solutions. As of the third quarter, it reported strong financial results. The company saw an increase in its compensated occupancy, reaching 75.2% in the quarter, up from 72.0% in the same period the previous year.

Net income for the quarter amounted to $21.1 million, or $0.19 per diluted share, compared to $13.9 million, or $0.12 per diluted share, in the third quarter of 2023. During an earnings call, management also provided insights into the U.S. federal prison population trends. At the end of President Obama’s second term, the national population of federal prisoners under the U.S. Marshals Service stood at nearly 47,000. This figure rose to nearly 67,000 under President Trump’s first term, peaking in early 2020 before settling at around 66,000 presently.

In response to ongoing demand and the change in administration, CoreCivic (NYSE:CXW) is working proactively to activate and maximize the use of its available bed capacity, which amounts to about 18,000 beds. The company’s long-standing relationship with U.S. Immigration and Customs Enforcement (ICE) was also highlighted by President and CEO Damon Hininger, who noted that ICE was the company’s first customer.