Private Prison Stock Prices Surge After Trump Election

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Two companies that operate detention facilities in the U.S. are breaking out, Bloomberg reports. Donald Trump’s victory in the presidential election helped shares of Corrections Corporation of America (which is renaming itself CoreCivic) rise 34 percent, while GEO Group Inc. was trading 18 percent higher. Those moves mean the stocks have recouped some of the losses they’ve registered since August, when the Department of Justice said it would start phasing out privately run facilities. Analysts say President Trump would be likely to reverse that policy, and see an added windfall to the companies stemming from the difficulty of implementing his deportation agenda.

“Private prisons would likely be a clear winner under Trump, as his administration will likely rescind the DOJ’s contract phase-out and ICE capacity to house detainees will come under further stress,” said analysts at Height Securities LLC. Mass deportation of illegal immigrants would be likely to run into legal obstacles, “further necessitating a sizable contract detention population,” the analysts said. Trump was endorsed by the National Immigration and Customs Enforcement Council, the union that represents U.S. customs and immigration officials.

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