CoreCivic (CXW) Avoided by Analysts Despite 15.8% Six-Month Rally

Analysts recommended avoiding CoreCivic (CXW) on June 2, 2026, despite a 15.8% six-month rally to $21.17, as deteriorating profitability and stagnant free cash flow overshadowed the prison operator's modest sales growth. Sales rose at a 4.6% compound annual rate over five years, below sector benchmarks. Adjusted operating margin fell 3.2 percentage points to 10.3% over that period, while free cash flow margin dropped 6.6 points to breakeven. The stock trades at 0.8x forward price-to-sales, but insufficient profit estimates prevent reliable valuation.