CoreCivic (CXW) Rallies 0.46% After Court Victory

CoreCivic (CXW) shares rose 0.46% today, marking an intraday gain of 0.00% as the stock price fell to its lowest level since April 2025.

The strategy of buying CXW shares after they reach a recent low and selling them a week later delivered strong returns over the past five years. The strategy achieved a 138.37% return, significantly outperforming the benchmark return of 59.24%. The excess return was 79.13%, indicating the strategy's ability to capitalize on CXW's price movements. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.97, the strategy also showcased robust risk management, maintaining a steady upward trend in returns without significant volatility or drawdowns.

The recent U.S. appeals court decision has been the most significant factor influencing CoreCivic's stock price. On a recent Tuesday, the Philadelphia-based 3rd U.S. Circuit Court of Appeals ruled in favor of CoreCivic, allowing the company to continue operating detention centers in New Jersey. This decision blocked New Jersey's attempt to ban the detention of immigrants awaiting deportation, which would have affected CoreCivic's operations. The court's decision supports the federal government's reliance on private detention facilities, like those operated by CoreCivic, which is crucial for managing immigration enforcement. This ruling could positively impact CoreCivic's stock as it ensures the continuation of their operations in a key market.