Private prison stocks rose on Monday after President-elect Donald Trump selected immigration hardliner Tom Homan as his “border czar.”
The Geo Group and CoreCivic jumped more than 4% and nearly 8%, respectively, in premarket trading. Homan served as the head of Immigration and Customs Enforcement during Trump’s first term.
Trump said Sunday on Truth Social that Homan “will be in charge of all Deportation of Illegal Aliens back to their Country of Origin.” Homan will be responsible for the southern border, the northern border as well as all maritime and aviation security, Trump said.
Homan told a conservative conference in July that he “will run the biggest deportation operation this country has ever seen” when Trump returns to office.
“With Trump returning to the White House, there will be a far firmer embrace of Geo Group and CXW,” Isaac Boltansky, an analyst at BTIG, told clients in a Nov. 6 note. The second Trump administration would allow for contracting with the U.S. Marshalls Services and the Federal Bureau of Prisons, Boltansky said.
“More importantly they would take a far more aggressive stance on border enforcement, which would impact the ICE business lines at these firms,” the analyst told clients.