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

5. The GEO Group, Inc. (NYSE:GEO)

Number of Hedge Fund Holders: 28

Talking about The GEO Group, Inc. (NYSE:GEO) on Monday, Cramer 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.”

GEO Group (NYSE:GEO) owns, leases, and manages secure facilities and reentry centers, offering services like security, rehabilitation, education, and food services, along with reentry, electronic monitoring, transportation, and facility design and construction. In recent weeks, the company saw an increase in stock value after Donald Trump was elected President, becoming one of the biggest gainers in the U.S. stock market following the election.

During a recent earnings call, Executive Chairman George Zoley addressed concerns regarding federal funding, particularly after the expiration of the continuing resolution on December 20th. He noted that it is likely that Congress will extend the resolution until after the new presidential administration takes office, after which appropriation bills would likely be considered to fund the government for the rest of the fiscal year.

GEO Group (NYSE:GEO) CEO Brian Evans also pointed out that unused bed capacity at the company’s facilities could potentially generate $400 million in annualized revenues if filled. He further highlighted the company’s ability to scale its existing surveillance and monitoring program to cover millions of immigrants, calling it an unprecedented opportunity for additional revenue.