Private prison stocks soar after Donald Trump election
The morning after the election of Donald Trump, private prison stocks soared.
Corrections Corporations of America was up around 40 percent early Wednesday, and GEO Group was up around 20 percent.
“The for-profit prison industry (CXW, GEO) were likely to face negative headlines and persistent contract uncertainty under a Clinton White House, but we expect a Trump administration to be more supportive given its focus on immigration and crime,” Compass Point said in a note.
Recently, President Barack Obama announced that the federal government would stop using private prison facilities, and Hillary Clinton supported the measures. However, Donald Trump has positioned himself as the “law and order” candidate, meaning private prison companies see a better future for their industry under his leadership.