What’s Next for GEO Group, Inc. (GEO) After Forming Descending Triangle Pattern?

December 8, 2017 - By Richard Conner

The stock of GEO Group, Inc. (GEO) formed a descending triangle with $25.96 target or 6.00 % above today’s $24.49 share price. The 5 months triangle pattern indicates low risk for the $2.99B company. If the $25.96 price target is reached, the company will be worth $179.64 million more.
The descending triangle is in our view more reliable than the ascending one. The descending triangle pattern has break even failure rate for up and down breakouts of 7% and 16%, respectively. The average rise and decline is 47% and 16%. The throwback or so called pullback rates are: 37% and 54%. The stocks meeting their targets is high for this type of breakout: 84% and 54% percent.

The stock decreased 0.65% or $0.16 during the last trading session, reaching $24.49. About 735,423 shares traded or 13.89% up from the average. GEO Group, Inc. (NYSE:GEO) has risen 49.90% since December 8, 2016 and is uptrending. It has outperformed by 33.20% the S&P500.

Analysts await GEO Group, Inc. (NYSE:GEO) to report earnings on February, 28. They expect $0.50 EPS, down 27.54 % or $0.19 from last year’s $0.69 per share. GEO’s profit will be $61.13M for 12.25 P/E if the $0.50 EPS becomes a reality. After $0.63 actual EPS reported by GEO Group, Inc. for the previous quarter, Wall Street now forecasts -20.63 % negative EPS growth.

GEO Group, Inc. (NYSE:GEO) Ratings Coverage

Among 5 analysts covering The GEO Group (NYSE:GEO), 5 have Buy rating, 0 Sell and 0 Hold. Therefore 100% are positive. The GEO Group had 13 analyst reports since August 4, 2015 according to SRatingsIntel. Canaccord Genuity maintained GEO Group, Inc. (NYSE:GEO) rating on Thursday, August 10. Canaccord Genuity has “Buy” rating and $31 target. Canaccord Genuity maintained GEO Group, Inc. (NYSE:GEO) rating on Monday, December 12. Canaccord Genuity has “Buy” rating and $38 target. As per Thursday, September 1, the company rating was maintained by SunTrust. As per Tuesday, April 11, the company rating was maintained by Canaccord Genuity. The rating was initiated by J.P. Morgan with “Buy” on Friday, July 14. The stock has “Buy” rating by Suntrust Robinson on Thursday, September 1. The firm earned “Buy” rating on Tuesday, August 4 by MLV. As per Wednesday, October 18, the company rating was maintained by SunTrust. The rating was maintained by Canaccord Genuity with “Buy” on Wednesday, August 24. Canaccord Genuity maintained GEO Group, Inc. (NYSE:GEO) rating on Friday, November 11. Canaccord Genuity has “Buy” rating and $35 target.

More news for GEO Group, Inc. (NYSE:GEO) were recently published by: Prnewswire.com, which released: “Stock Review for REIT’s Investors — HCP Inc., Medical Properties Trust …” on December 05, 2017. Businesswire.com‘s article titled: “The GEO Group Announces Commencement of Operations at Ravenhall Correctional …” and published on November 13, 2017 is yet another important article.

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