Private prison stocks, including Geo Group and CoreCivic, saw an increase on Monday following President-elect Donald Trump's selection of Tom Homan as his "border czar."
At a conservative conference in July, Homan stated that he "will lead the largest deportation force this country has ever seen" when Trump is back in office.
Private prison stocks experienced gains on Monday following President-elect Donald Trump's appointment of immigration hardliner Tom Homan as his "border czar."
In morning trading, shares of Geo Group surged over 7%, while CoreCivic saw an increase of nearly 8%. Homan previously led Immigration and Customs Enforcement during Trump's first term.
On Sunday, Trump announced on Truth Social that Homan "will oversee the deportation of illegal aliens back to their country of origin." He will be responsible for security at the southern and northern borders, as well as maritime and aviation security, according to Trump.
At a conservative conference in July, Homan stated that he "will lead the largest deportation operation this country has ever seen" when Trump returns to office.
"In light of Trump's return to the White House, there will be a much stronger support for Geo Group and CXW," Isaac Boltansky, an analyst at BTIG, informed clients in a note on Nov. 6. He noted that a second Trump administration would facilitate contracts with the U.S. Marshals Service and the Federal Bureau of Prisons.
"Crucially, they would adopt a much more aggressive approach to border enforcement, which would affect the ICE business segments of these companies," the analyst stated to clients.
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