4-Star Stocks Poised to Pop: Corrections Corporation of America

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, correctional and detention facilities operator Corrections Corporation of America (NYS: CXW) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Corrections Corp.'s business and see what CAPS investors are saying about the stock right now.

Corrections Corp. facts

Headquarters (founded)Nashville, Tenn. (1983)
Market Cap$2.8 billion
IndustrySecurity services
Trailing-12-Month Revenue$1.7 billion
ManagementCEO Damon Hininger (since 2009)
CFO Todd Mullenger (since 2007)
Return on Equity (average, past 3 years)10.9%
Cash/Debt$55.8 million / $1.3 billion
Competitors

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 354 members who have rated Corrections Corp. believe the stock will outperform the S&P 500 going forward.  

One of those Fools, All-Star TMFDeej, tapped yesterday's decline as an attractive buy-in opportunity:

I am interested in the possible conversion of CXW into a REIT, spurred by several activist investors. The stock has surged a little more than I would have liked since this news came out, but I am going to add on [Tuesday's] pull-back.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Corrections Corp. may not be your top choice.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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