Best Stocks to Buy Under Trump: CoreCivic (CXW)
President Trump’s view of crime is pretty simple — crack down hard. The President and Congress don’t have control over local police forces; however, it’s undeniable that state and city governments would take their lead from the federal level on many things and that a push to get tougher on crime would lead to a huge influx in prisoners.
Over the past year, the federal government has been getting out of the private prison game as they are allowing contracts with companies like CoreCivic Inc (NYSE:CXW), formerly known as Corrections Corporation of America, to lapse without being renewed.
But that may change in a hurry if we see a lot more inmates without capacity to house them in government-run facilities.
Fundamentally, private prison companies like CXW don’t look particularly attractive — and before Election Day were trading at multiyear lows. However, shares have rebounded sharply. And we could see revenue and profits push seriously higher in the coming years if Trump and the GOP follow through on their tough talk.