Shares of CoreCivic, Inc. (CXW), a leading private prison operator, soared by 10.41% on November 7, 2024, driven primarily by the election victory of Donald Trump and expectations of his hardline immigration policies boosting demand for the company's detention facilities.

During his campaign, Trump vowed to crack down on illegal immigration, promising mass deportation of undocumented immigrants and increased funding for Immigration and Customs Enforcement (ICE) detention centers. With the Republican Party projected to control both the Senate and potentially the House of Representatives, analysts believe the political landscape will facilitate the implementation of these policies, leading to a surge in demand for private detention centers operated by companies like CoreCivic.

"Corrections Corp. of America's (CoreCivic's) facilities are a direct beneficiary of Trump's hardline stance on immigration, and their earnings are likely to see a significant boost in the coming years," said John Murphy, an analyst at Piper Sandler. "The company's strong financial position and operational expertise make it a prime candidate to benefit from the new administration's policies."

Adding to the positive sentiment, CoreCivic reported better-than-expected earnings for the quarter ended September 30, 2024. The company's adjusted earnings of $0.19 per share surpassed analysts' expectations of $0.09 per share, while revenue rose 1.6% year-over-year to $491.56 million. These results, coupled with the favorable political landscape, have investors optimistic about CoreCivic's prospects for growth and profitability.