Well, crime might not pay for taxpayers or the inmates at GEO Group (NYSE:GEO) correctional facilities, but it certainly has for shareholders of the company. GEO's stock price rose another 11% Wednesday, bringing its year-to-date return up to a stellar 64% after the company reported another strong quarter.
For its Q2, the prison operator reported a 13% increase in pro forma EPS from continuing operations, and revenue increased 24% on a year-over-year basis. Management attributed these sizable gains to new contracts, as well as better-than-expected performance from several of GEO's facilities. It was also prompted to increase its full-year forecast slightly.
I believe the prison stocks continue to be attractive investments. On Monday, Corrections Corp. of America (NYSE:CXW) reported 24% growth in EPS and improving margins. Both of these stocks have shown explosive growth over the past two years, and they still have more in store.
GEO Group continues to barrel forward with expansion. As of Dec. 31, it had 54,000 beds under management, with an average occupancy rate of 96%. Due to the bustling demand from government contracts, the company has ongoing projects that, once completed, will increase its capacity by about 20%. The company will have no difficulty filling these beds, because it recently won contracts in Louisiana and Texas, demonstrating the push for more housing for immigration detainees along the U.S. border.
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Fool contributor Billy Fisher does not own shares of any of the companies mentioned. The Fool's disclosure policy is always locked down.
