CORECIVIC INC (NYSE:CXW) – A High Growth Momentum Stock with Strong Technical Setup

CORECIVIC INC (NYSE:CXW) stands out as a high-growth momentum candidate with a solid technical setup. The company, which operates correctional and detention facilities, has shown notable earnings momentum alongside a favorable chart pattern. Below, we examine why CXW meets the criteria for both growth and technical strength.

Growth Momentum Highlights

• Strong Earnings Growth: CXW reported a 187.5% year-over-year EPS growth in the most recent quarter, with TTM EPS growth at 35.7%.
• Positive Revisions: Analysts have raised next-year EPS estimates by 22.7% over the past three months, reflecting improving sentiment.
• Free Cash Flow Surge: FCF per share grew 135.8% over the past year, indicating strong cash generation.
• Consistent Earnings Beats: The company surpassed EPS estimates in each of the last four quarters, with an average beat of 74.5%.
• Expanding Profit Margins: Quarterly profit margins improved from 3.87% three quarters ago to 5.14% in the latest report.

Technical Strength & Setup

CXW scores an 8 out of 10 on the ChartMill Technical Rating, supported by:

• Positive Trends: Both short-term and long-term trends are upward, reinforcing bullish momentum.
• Relative Strength: The stock outperforms 84% of its peers in the Commercial Services & Supplies industry.
• Consolidation Pattern: Prices have been trading in a tight range ($21.31 - $23.54) over the past month, reducing volatility and setting up a potential breakout.
• Support Levels: Multiple support zones exist between $19.06 and $22.09, providing downside protection.

A breakout above $22.50 could signal further upside, while a stop-loss near $21.87 offers defined risk.

For a deeper technical review, see the full technical report for CXW.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. Always conduct your own research and consider risk management before making investment decisions.