As the United States ramps up immigration enforcement, several stocks are poised to benefit from the government crackdown.
In particular, private prison stocks show strong potential as Los Angeles becomes a focal point in the renewed campaign.
Notably, recent Immigration and Customs Enforcement (ICE) raids in the area have led to over 100 arrests, sparking protests and rising political tensions. Amid this backdrop, the following two companies are likely market winners.
CoreCivic (NYSE: CXW)
CoreCivic (NYSE: CXW), one of the nation’s largest private prison operators, is seeing a surge in demand as ICE scales up detention efforts.
During its Q1 earnings call, CEO Damon Hininger described the current environment as unprecedented, noting the company has “never seen so much activity and demand” in its 42-year history. This momentum aligns with the Trump administration’s push for stricter immigration policies.
The company reported first-quarter earnings of $0.23 per share, nearly double expectations. Revenue also beat forecasts, reaching $488 million. Facility capacity rose to 77%, driven by expanded ICE contracts.
Looking ahead, CoreCivic is preparing to open new detention centers, including a 2,560-bed facility in California City, California, and a 1,033-bed complex in Kansas. It also signed deals to increase capacity in Mississippi, Nevada, Ohio, and Oklahoma.
As of the latest market session, CXW closed at $21.98, up more than 1% year to date. From its 2025 low of $18, the stock has climbed 22%.
GEO Group (NYSE: GEO)
Another major beneficiary is GEO Group (NYSE: GEO), which operates nearly 20 detention centers and generates significant revenue from ICE-related contracts.
The company’s stock has soared over 80% following the 2024 election, fueled by expectations of heightened immigration enforcement under the Trump administration. As of press time, GEO traded at $26.95.
Beyond physical detention, GEO is expanding its electronic monitoring operations through its subsidiary, BI Inc. Currently, the company tracks about 186,000 immigrants. It aims to scale up to 450,000 using facial recognition, ankle monitors, and smart devices.
In early 2025, GEO secured a new contract with ICE to reopen the 1,000-bed Delaney Hall Facility in Newark, New Jersey, another step in ICE’s aggressive expansion strategy.
Featured image via Shutterstock
