We recently created a list of 10 Best Prison and Law Enforcement Cells to Invest in. In this article, we’ll look at how Olin Corporation (NYSE: OLN ) stacks up against other prison and law enforcement stocks.
The United Nations Office on Drugs and Crime (UNODC) reports “Prison Issues 2024: Global Prison Population and Trends; A Focus on Rehabilitation” found that after a decline during the COVID-19 pandemic, the number of prisons worldwide will rise to 11.5 million in 2022, representing an increase of 5.5% since 2012. The population of the world has decreased, mainly due to rapid growth.
Overcrowding remains an important issue, affecting over 60% of the country, which raises serious concerns regarding the health and human rights of prisoners. In addition, there is a pressing need for improved measures to prevent deaths in custody, as suicides account for more than 10% of all deaths in prisons. In some countries, prisons are also facing staff shortages, which can compromise security and undermine reform efforts.
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The prisons and law enforcement landscape is evolving, marked by significant trends and legislative changes. The use of technology in law enforcement is increasing, especially with artificial intelligence (AI) tools designed to improve operations and reduce administrative burdens. As CNBC reported on November 26, many companies are stepping in to help the police. For example, Truleo has developed AI technology that automatically creates a list by taking real-time voice notes from executives in the field. The director of Truleo, Anthony Tassone, confirms that this method of issuing police reports is effective and ethical.
Another company, 365Labs, focuses on improving the quality of police reports through AI-driven grammar and error detection. 365Labs CEO Mohit Vij admits that while AI can help with basic clerical tasks, human judgment remains essential for serious incidents like burglaries or assaults. This combination of technology and human focus aims to improve law enforcement while ensuring that officers are able to serve their communities.
On November 11, CNBC reported that private prison stocks rose after the appointment of Tom Homan by President Donald Trump as the “king of the border”. Homan, who led Immigration and Customs Enforcement (ICE) during Trump’s first term, will oversee all aspects of deporting undocumented immigrants. Mr. Trump confirmed that Homan will address security on the southern and northern borders, as well as maritime and aviation security.
Earlier, in July, Homan had announced his intention to launch a large-scale deportation program, saying it would be the largest in the history of the United States. Researcher Isaac Boltansky from BTIG noted that the second Trump administration could expand contracts with the US Marshals Service and the Federal Bureau of Prisons, suggesting a more aggressive approach to border enforcement that could help companies dealing with immigration and incarceration.
To create our list of the top 10 securities and law enforcement stocks to invest in, we used Finviz and Yahoo stock screeners to find the largest securities and law enforcement companies. We also did our own research and consulted various resources online. We have carefully checked our list to remove any companies that cannot be classified as prison and law enforcement stocks.
From an initial pool of more than 20 prison and law enforcement stocks, we looked at the top 10 stocks most popular with institutional investors. Data on hedge fund sentiment around each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 10 best prison and law enforcement stocks to invest in are ranked in ascending order based on the number of hedge funds that hold stakes in them.
Why do we care about what hedge funds do? The reason is simple: Our research has shown that we can outperform the market by following the best pictures of the best quality hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points. (see more here).
Is Olin Corporation (OLN) The Best Prison And Law Enforcement Stock To Invest?
Pixabay/Public Domain
Number of Hedge Fund Holders: 33
Olin Corporation (NYSE: OLN) is a manufacturer and distributor of chemical products and a leading US manufacturer of ammunition. Through the Winchester ammunition brand, the company manufactures and distributes sporting ammunition, law enforcement ammunition, reloading equipment, small arms and parts, and industrial cartridges.
In the third quarter of 2024, the company reported sales of $1.58 billion, up from $1.67 billion in the same quarter last year. Olin Corporation (NYSE:OLN) faced challenges due to Hurricane Beryl, which disrupted operations and is expected to result in a total loss of approximately $135 million in 2024. Despite these challenges, Olin Corporation’s (NYSE:OLN) Winchester stock showed strength, with sales rising to $ 432.8 million, from $ 380.2 million in Q3 2023. This growth was due to increased military sales and the acquisition of the White Flyer in Q4 2023, which will enhance the company’s position in shooting games for fun. Notably, Winchester’s Q3 2024 military shipments and project costs increased 35% respectively.
In the Q3 2024 earnings call, Olin Corporation’s (NYSE: OLN ) management shared that construction has begun on the Army’s Lake City Next Generation Squad Weapon facility. This project, fully supported by the US Army, is expected to increase Winchester’s income from Lake City operations and increase the company’s involvement in defense programs around the world. The new facility will support the production of advanced weapons, complement the Army’s efforts and strengthen Winchester’s position in the defense sector.
Overall, OLN in the 6th place on our list of top prison and law enforcement stocks to invest in. While we acknowledge the potential of OLN as an investment, our confidence lies in the belief that AI stocks have the greatest promise to deliver high returns, and to do so within a short period of time. frame. If you are looking for an AI stock that is more promising than OLN but that trades less than 5 times its earnings, check out our report about cheap AI stock.
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Disclosure: None. This article was published on Insider Monkey.
