Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, correctional and detention facilities operator Corrections Corporation of America (NYSE: CXW) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Corrections Corp.'s business and see what CAPS investors are saying about the stock right now.

Corrections Corp. facts

Headquarters (founded)

Nashville, Tenn. (1983)

Market Cap

$2.61 billion


Security services

Trailing-12-Month Revenue

$1.68 billion


CEO Damon Hininger (since 2009)

CFO Todd Mullenger (since 2007)

Return on Equity (average, past 3 years)



$25.5 million / $1.16 billion



Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 352 members who have rated Corrections Corp. believe the stock will outperform the S&P 500 going forward. These bulls include awu3210 and taylor4u.

Late last year, awu3210 touched on the trends working in the stock's favor: "Basically part of a duopoly -- the other being GEO, except [Corrections Corp.'s] got excess beds in its inventory waiting to capitalize on the problems states are facing, namely prison overcrowding and pension problems."

Corrections Corp. even boasts a robust three-year average operating margin of 19.2%. That's higher than that of main rival GEO Group (12%), as well other security plays such as Brink's Co. (NYSE: BCO) (6.2%) and China Security & Surveillance (NYSE: CSR) (13.3%).

CAPS member taylor4u elaborates on the bull case:

CXW has several trends working in their favor. An Increasing population means more prisoners. The last census showed most of the growth was in the south and west where CXW has most of its operations. Also, budget conscious governments will look to private prisons to save money. They also say they pay unemployment taxes which will decrease if the number of claims decrease which should happen eventually. Add that to the already overpopulated prisons and CXW looks like a buy.

What do you think about Corrections Corp., or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.