Home Investing Geo Group stock is a buy on a retracement as the price breaks above a key level

Geo Group stock is a buy on a retracement as the price breaks above a key level

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Geo Group Inc. (NYSE:GEO) stock is up 22% in the past month. The stock is gearing for more gains after a key breakout in a sustained monthly surge. The stock has a moderate buy on Wall Street, with an upside potential of 98% to $15.

Geo Group stock got boosts from its recently released Q2 2022 results. The company posted an adjusted EPS of $0.42, an increase from $0.41. The EPS was strongly above estimates of $0.31. Revenues for the quarter were $588.2 million, surpassing estimates of $581.5 million. 

In the third quarter, Geo Group projects revenue of between $603 million to $608 million. The revenue is expected to settle at between $600 million and $605 million in Q4. The projection is higher than estimates of $555.8 million and $552.8 million, respectively.

Geo Group stock breaks out from an ascending triangle.

Source – TradingView

Technically, Geo Group is retreating after surging strongly above a breakout zone. The stock was recently trapped inside an ascending triangle. 

Geo stock has turned the $7.15 resistance into support and currently trades at $7.57. The stock is near the overbought region and is retreating. With the next resistance established at $8.66, the stock is a buy on retracement towards the $7.15 level.

Concluding thoughts

Geo Group posted robust results in the second quarter. The company’s third and fourth quarter estimates also surpassed estimates. Geo Group eyes $8.66 next as price pumps. The stock is a buy on a retracement at or towards the $7.15 support.

The post Geo Group stock is a buy on a retracement as the price breaks above a key level appeared first on Invezz.

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