We recently published an article titled Why These 10 Firms Nosedived Today.In this article, we are going to take a look at where The GEO Group, Inc. (NYSE:GEO) stands against the other stocks.

The stock market bounced back from the previous day’s losses, with all major indices finishing higher as investors cheered the central bank's decision to keep interest rates unchanged.

On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still “wait and see” the impacts of President Donald Trump’s tariff policies.

The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent.

Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.Is The GEO Group, Inc. (GEO) the Best Breakout Stock to Buy According to Analysts?

Security guards in uniforms patrolling an area, standing for the company's safe and secure facilities.

The GEO Group, Inc. (NYSE:GEO)

The GEO Group, Inc. (NYSE:GEO) fell by 10.04 percent on Wednesday to end at $27.32 apiece as investors soured on its dismal earnings performance during the first quarter of the year.

In its financial statement, The GEO Group, Inc. (NYSE:GEO) said net income fell by 13.9 percent to $19.5 million from $22.67 million in the same period last year, while revenues slightly dipped to $604 million from $605 million year-on-year.

Looking ahead, the company expects higher operating expenses and capital expenditures “to position our company for future growth.” It said the move is expected to lay in during the second half of the year and normalize in 2026.

“We also remain focused on reducing our net debt, deleveraging our balance sheet, and positioning our company to explore opportunities to return capital to shareholders in the future. In 2025, we expect to reduce our total net debt by approximately $150 million to $175 million, bringing our total net debt to approximately $1.54 billion,” said The GEO Group Inc. (NYSE:GEO) Executive Chairman George Zoley.

Overall GEO ranks 5th on our list of Wednesday's worst performers. While we acknowledge the potential of GEO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GEO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.