Undervalued Stocks: CoreCivic Inc. (NYSE:CXW) Estimated to be 45% Undervalued

CoreCivic's projected fair value is estimated at $36.48 based on a 2-stage free cash flow to equity model, with the company being undervalued by 45% based on its current share price of $20.00. The analyst price target for CXW is $31.50, which is 14% below the fair value estimate.

Private prison operator CoreCivic (NYSE:CXW) reported robust financial results for the second quarter of 2025, exceeding Wall Street expectations and signaling a promising outlook for the company. CoreCivic's revenue surged 9.8% year-on-year to $538.2 million, beating analysts' estimates by 8.6% [1]. The company's non-GAAP profit of $0.36 per share was 73.1% above consensus estimates, highlighting its strong performance.

CoreCivic's adjusted earnings per share (EPS) of $0.36 also surpassed analyst expectations, growing 31.4% over the last two years, indicating improved profitability on a per-share basis [1]. The company's operating margin of 19.2% was a 25.7% beat over analysts' estimates, demonstrating effective cost management [1]. Additionally, CoreCivic's full-year EPS guidance of $1.11 and EBITDA guidance of $368 million were well above analyst estimates, signaling continued growth [1].

Analysts have estimated CoreCivic's projected fair value at $36.48 based on a 2-stage free cash flow to equity model, indicating the stock is undervalued by 45% relative to its current share price of $20.00 [1]. The analyst price target for CXW is $31.50, which is 14% below the fair value estimate, suggesting there may be potential for upside in the stock's valuation [1].

While CoreCivic's recent performance is impressive, investors should consider the company's long-term growth prospects and valuation when making investment decisions. The company's revenue growth has been relatively modest in the past, but recent quarterly results suggest a potential turnaround. Additionally, CoreCivic's strong earnings performance and undervalued valuation make it an attractive investment opportunity for those seeking growth and value.

References:
[1] https://finance.yahoo.com/news/corecivic-nyse-cxw-reports-strong-230638202.html