On August 06, 2026, CoreCivic Inc CXW shares rose 3.2% to $32.24, reflecting a notable upward momentum. The stock has seen a significant rally, trading between a 52-week low of $15.74 and a high of $34.00.
- GF Value™ verdict: Current price is $32.24, indicating a 44.9% overvaluation compared to the GF Value of $22.25.
- GF Score™ of 63/100, suggesting an above-average assessment of the company.
- Notable signal: Insiders sold $1.0M worth of shares in the last 3 months, with no buying activity.
Is CXW Overvalued or Undervalued?
CoreCivic Inc CXW is currently assessed as significantly overvalued according to GF Value™, with a current share price of $32.24 compared to a GF Value of $22.25. This suggests a substantial 44.9% margin of overvaluation. The GF Value™ is GuruFocus' proprietary estimate of intrinsic value, derived from analyzing historical trading multiples, past business growth, and projections of future performance. Given this valuation, investors face considerable risks if they enter at the current price, as the stock does not provide a margin of safety.
The GF Valuation label indicates that the stock is significantly overvalued, which aligns with the current price being substantially higher than the GF Value estimate. This discrepancy raises concerns about the sustainability of the current price level and the potential for a market correction.
How Does CXW's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 26.2x | 19.2x |
| Forward P/E | 20.0x | N/A |
The current P/E (TTM) of 26.2x is 36% above its 5-year median of 19.2x, indicating that the stock is trading significantly higher than its historical valuation metrics. This analysis corroborates the GF Value™ verdict, reinforcing the notion that CXW is overvalued at its current price.
What Does CXW's GF Score™ Tell Us?
The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. CoreCivic’s GF Score™ stands at 63/100, which is above average, but it highlights a mixed performance across various dimensions.
| Metric | Rating |
|---|---|
| GF Score™ | 63 |
| Financial Strength | 5/10 |
| Profitability | 7/10 |
| Growth | 2/10 |
| Valuation | 5/10 |
| Momentum | 3/10 |
The strongest sub-rank is Profitability at 7/10, indicating decent earnings relative to its peers, while the weakest is Growth at 2/10, suggesting limited future growth potential. This mixed score reflects the challenges that CoreCivic faces in maintaining upward momentum in a potentially overvalued environment.
What Are Gurus and Insiders Doing with CXW?
Currently, three gurus hold shares of CoreCivic Inc CXW, with one guru adding to their position and two trimming their holdings in recent quarters. This activity indicates a cautious sentiment among institutional investors. Additionally, insider activity has been predominantly negative, with insiders selling $1.0M worth of shares in the last three months without any buying. This trend may signal a lack of confidence among insiders regarding the company's future performance, further reinforcing the concerns about the stock's current valuation.
What This Means for Investors
In summary, CoreCivic Inc CXW appears to be significantly overvalued based on the GF Value™ assessment, with a notable discrepancy between its current price and intrinsic value. Investors should be wary of entering at this level due to the risks associated with overvaluation and the lack of a safety margin. For more information, visit the CoreCivic Inc (CXW) stock page and explore additional insights on the GF Value™ page.
Frequently Asked Questions
What is CXW's GF Score™?
CoreCivic Inc CXW has a GF Score™ of 63/100, indicating an above-average assessment of the company's overall performance.
Is CXW overvalued or undervalued?
According to the GF Value™, CXW is currently significantly overvalued, with a 44.9% difference between the market price and intrinsic value.
What is CXW's P/E ratio?
The current P/E (TTM) ratio for CXW is 26.2x, which is significantly above its historical 5-year median of 19.2x, indicating a higher valuation compared to its past performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
