The Top 3 Prison Stocks to Buy

Mike Munno

Updated August 10, 2023

Prison stocks can illicit mixed feelings among investors. Some believe it to be immoral or unethical to invest in prison stocks. Others believe it's the best way to take advantage of a necessary and budding industry. Are you interested in investing in the prison industry? If so, you're in the right place. Today, we'll be discussing the top three prison stocks to buy. 

Investing in prison stocks is controversial, as the industry has been criticized for profiting off of incarceration. However, it is important to note that the prison industry is a stable and profitable investment, as the demand for prisons is unlikely to decrease in the foreseeable future.

Best Prison Stocks

The Top 3 Prison Stocks

  • GEO Group (NYSE: GEO)
  • CoreCivic (NYSE: CXW)
  • Serco Group (OTCMKTS: SCGPY)

According to the Bureau of Justice Statistics, there are over 2.3 million people incarcerated in the United States. The U.S. has the highest incarceration rate in the world. The prison population has actually increased by over 500% since the 1970s. 

This increase in the prison population has led to a rise in the prison industry, which includes private prison companies and suppliers of goods and services to prisons. While prison stocks have had a rocky start to the 2020s, it seems as though the tides are turning. With the reversal of the trend, many people are looking more into how to invest in prison stocks. While some investors turn towards private prison stocks, today we'll focus on public prison stocks. These are the top three prison stocks to invest in this trend…

GEO Group (NYSE: GEO)

GEO Group is one of the largest private prison companies in the United States. It's a real estate investment trust (REIT)** that operates over 70 facilities across the country, with a total capacity of over 90,000 beds. GEO also provides a range of services beyond just operating prisons, including rehabilitation programs, electronic monitoring services, and mental health treatment.

While many believe prison stocks are an unethical investment, you can rest assured that companies like GEO Group take their commitment to improve the lives of those in their care seriously. The company is very transparent about its cooperation with environmental, social, and governance (ESG) standards and adheres to ethical governance practices. 

GEO has a market cap of just below $1 billion ($971.56 million at the time of writing) and has not been immune to the volatility of the sector. The company has also been expanding into the international market, with facilities in Australia and the United Kingdom. In total, GEO Group has 102 facilities around the world with 18,000 employees. 

CoreCivic (NYSE: CXW)

CoreCivic, formerly known as the Corrections Corporation of America, is another major player in the private prison industry. The company operates over 50 facilities in the United States and has contracts with various government agencies. CoreCivic has a market cap just above $1 billion.

CXW has diversified its services beyond just traditional prisons. It also operates detention centers for illegal immigrants and provides reentry programs for inmates who are getting released back into society. This diversification reduces the company's risk and increases its potential for growth.

CoreCivic is also led by an experienced management team with a wealth of experience in the correctional industry. President and CEO Damon Hininger has been in charge since August 2009.

Serco Group ADR (OTCMKTS: SCGPY)

Serco Group is a global service company that provides essential services to governments and businesses. This means its services are in high demand, regardless of the economic climate.

Serco Group has a history of steady revenue growth and currently sits at a market cap above $2.339 billion. The company has a strong track record of delivering value to its shareholders. For example, it has consistently paid dividends to its shareholders, even during challenging economic times. In fact, Serco is the only prison stock on this list that pays a dividend. 

SCGPY is committed to sustainability and social responsibility, which may appeal to investors who care about making a positive impact on the world.

**Want to learn more about a premium real estate investment trust opportunity? Jason Williams has just recommended THIS REIT to his subscribers at The Wealth Advisory.

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