In this article, we will look at the 10 Best Prison and Law Enforcement Stocks to Buy According to Analysts.
According to the United Nations Office on Drugs and Crime, an estimated 11.7 million people were detained in prisons across the globe at the end of 2019. This translates to the population of entire countries such as Belgium, Tunisia, Bolivia, or Burundi. The number of people detained in prisons has increased by over 25% since 2000. While a majority of the people imprisoned over the last two decades are men, at around 93%, the number of women in prisons is rising at a faster pace, undergoing a 33% growth as compared to a 25% rise in men.
These growing numbers are being reflected in other trends in the industry as well. According to Grand View Research, the US law enforcement PPE (personal protective equipment) industry had a market size of $839.4 million in 2021. It is expected to grow at a compound annual growth rate of 5.0% between 2022 and 2030. Since awareness regarding officer safety in riot control and tactical situations is gaining ground, it is positively impacting growth in this industry. Demand for law enforcement PPE, including face shields, protective clothing, respirator masks, goggles, and surgical masks, especially surged during the COVID-19 pandemic.
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Increasing Use of AI in Law Enforcement
Various other trends are also materializing in the law enforcement industry. At the end of 2024, CNBC reported that police departments across the United States are beginning to use AI to write police reports. Various companies are developing AI tools to aid police departments in easing the burden of administrative tasks, with law enforcement focusing on slashing budget pressures and crime rates while retaining and recruiting staff.
However, legal experts are simultaneously raising red flags over the increasing use of AI in police work, citing concerns such as transparency, accuracy, and potential bias. These challenges can affect the future of AI in law enforcement and policing. A significant part of the impact depends upon the extent to which such tools are used and how they are adopted in the sector. CNBC reported that Utah State Senator Stephanie Pitcher, a defense attorney with Parker & McConkie, said the following about the situation:
“For all of the potential issues that AI technology creates in terms of admissibility of evidence, in terms of being completely transparent, in terms of trying to mitigate the biases that can be introduced into the system, I just don’t know that it’s worth it.”
With these trends in view, let’s look at the 11 best prison and law enforcement stocks to buy according to analysts.
A prison guard walking down a hallway filled with inmates in a correctional facility.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 prison and law enforcement stocks and chose the top 11 with the highest analyst upside potential as of April 25, 2025. We also included the number of hedge fund holders for each stock as of fiscal Q4 2024, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of analyst upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Prison and Law Enforcement Stocks to Buy According to Analysts
10. NICE Ltd. (NASDAQ:NICE)
Analyst Upside: 29.02%
Number of Hedge Fund Holders: 28
NICE Ltd. (NASDAQ:NICE) provides enterprise software solutions and services. Its operations are divided into two segments: Financial Crime and Compliance Solutions, and Customer Engagement. The Financial Crime and Compliance Solutions segment employs embedded AI solutions to identify risks, prevent fraud and money laundering, and ensure real-time financial market compliance. The Customer Engagement segment offers suites such as compliance and risk, operational efficiency, and more. The company ranks 11th on our list of the 11 best prison and law enforcement stocks to buy according to analysts and has various applications in the industry. This includes its Evidencentral, which is a digital evidence management platform specifically designed for public safety, law enforcement, and criminal justice agencies.
The company is operating soundly. Its cloud revenue for fiscal Q4 2024 rose 24% to $534 million, the highest cloud growth on the largest cloud revenue base in the industry. Quarter-to-quarter cloud growth between fiscal Q3 2024 and fiscal Q4 2024 also accelerated to 6.8%. The notable cloud revenue growth drove a healthy year-over-year increase in total revenue for the company, reflecting its strength at the high end of the market. NICE Ltd. (NASDAQ:NICE) also reached a milestone of over 400 enterprise cloud customers with over $1 million in ARR.
On March 25, NICE Ltd. (NASDAQ:NICE) announced a collaboration with Deloitte Digital with the aim of transforming customer service by offering service automation and end-to-end AI. The collaboration would help make customer service a distinct feature of organizations supported by AI-powered enhancements. On April 16, Morgan Stanley analyst Meta Marshall maintained a Buy rating on NICE Ltd. (NASDAQ:NICE) and set a price target of $202.00.
9. FARO Technologies, Inc. (NASDAQ:FARO)
Analyst Upside: 31.91%
Number of Hedge Fund Holders: 25
FARO Technologies, Inc. (NASDAQ:FARO) designs, develops, manufactures, and markets three-dimensional imaging and software solutions employed for various purposes. Its offerings include software, hardware, a 3D app center, and certified pre-owned equipment products. The company’s geographical segments are divided into the United States and Canada, Americas-Other, Germany, EMEA-Other, Japan, China, and Asia-Other. The FARO Focus Laser Scanners are used by US law enforcement to collect key evidence related to shootings and preserve crime scenes.
On April 15, FARO Technologies, Inc. (NASDAQ:FARO) announced the launch of FARO Blink, a unique 3D reality capture solution that marks a significant milestone in its objective to streamline the process of 3D reality capture. In a report released on April 21, Greg Palm from Craig-Hallum maintained a Buy rating on FARO Technologies, Inc. (NASDAQ:FARO).
Fiscal Q1 2025 marked a turning point for the company, resulting from rising traction from refreshed products and the introduction of new solutions that led to a 6% year-over-year net orders growth. The company surpassed its forecast by delivering GAAP net income of $0.9 million and $12.5 million in adjusted EBITDA, or 15.0% of revenue. It expects revenue in the range of $79 to $87 million for fiscal Q2 2025, supported by its growth strategy and its recent product launches, including Blink for digital reality workflows.
8. Cadre Holdings, Inc. (NYSE:CDRE)
Analyst Upside: 34.65%
Number of Hedge Fund Holders: 12
Cadre Holdings, Inc. (NYSE: CDRE) manufactures and distributes safety and survivability products, as well as other related items, for the law enforcement, military, and first responder markets. Its operations include the Product and Distribution segments. The Product segment comprises component manufacturing and selling products, while the Distribution segment acts as a one-stop shop for law enforcement agencies.
On April 13, analyst Sheila Kahyaoglu of Jefferies maintained a Buy rating on Cadre Holdings, Inc. (NYSE:CDRE), reducing the price target to $40.00. The analyst said that the company’s strategic growth opportunities and solid financial performance supported this rating. The company ended fiscal Q4 2024 with a notable 41% year-over-year revenue growth, exceeding expectations by 3%. This growth was attributed to robust performance in the Armor and Duty Gear segments and successful acquisitions that helped Cadre Holdings, Inc. (NYSE:CDRE) recover from previous challenges.
The analyst also opined that the company’s strategic initiatives, including potential M&A activities and integration of recent acquisitions, are anticipated to impact its financial outlook positively. Cadre Holdings, Inc. (NYSE:CDRE) has also maintained a strong balance sheet and has manageable debt levels, which the analyst believes adds to the buy rating and gives it the 9th spot on our list of the best prison and law enforcement stocks to invest in now.
7. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
Analyst Upside: 36.84%
Number of Hedge Fund Holders: 15
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) manufactures and designs firearms, including a range of handguns, long guns, handcuffs, firearm suppressors, and other firearm-related items. The company sells its products to various customers, including law enforcement and security agencies and officers, military agencies in the United States, individuals requiring personal protection, and others. It sells its products under the Gemtech and Smith & Wesson brands.
Investors are bullish on Smith & Wesson Brands, Inc. (NASDAQ:SWBI) due to its continuous innovations. This commitment to innovation has paid off for the company, as nearly 41% of its sales in fiscal Q3 2025 came from new products introduced within the past year. This highlights the successful reception of the company’s products in the market, along with its ability to meet consumer demand with innovative offerings.
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) also reported a 17.2% growth in the average selling prices (ASP) for long guns during fiscal Q3 2025. The growth was driven by higher demand for higher-priced lever rifles, which reflects a transition towards premium products in consumer preferences.
6. The GEO Group, Inc. (NYSE:GEO)
Analyst Upside: 50.43%
Number of Hedge Fund Holders: 39
The GEO Group, Inc. (NYSE:GEO) designs, finances, develops and supports services for processing centers, secure facilities, and community re-entry facilities. Its operations are divided into the following segments: US Secure, Electronic Monitoring and Supervision, Re-entry, and International Services. The US Secure Services segment comprises the US-based public-private partnership correction and detention segment, while the Electronic Monitoring and Supervision Services segment offers services in the US. The International Services segment offers public-private partnership secure services operations in South Africa and Australia, and the Re-entry Services Segment comprises various community-based and re-entry services.
On April 15, the New York Times reported that the GEO Group, Inc. (NYSE:GEO) has built a lucrative business segment focusing on digital tools that provide immigrant surveillance on behalf of the federal government over the last decade. This has made it one of the most prominent business winners amidst deportations in Trump’s administration. The company’s smartwatches, ankle monitors, and tracking applications are helping the government by detecting and reporting unauthorized immigrant locations to Immigration and Customs Enforcement.
On March 25, Noble Capital raised the firm’s price target on GEO Group, Inc. (NYSE:GEO) to $35 from $32, keeping an Outperform rating on the shares following the company’s investor day. The analyst told investors that GEO Group, Inc. (NYSE:GEO) announced significant growth opportunities under its new initiatives to manage undocumented immigrants on investor day, along with its goal to both return capital to shareholders and slash debt.
5. Byrna Technologies Inc. (NASDAQ:BYRN)
Analyst Upside: 54.29%
Number of Hedge Fund Holders: 16
Byrna Technologies Inc. (NASDAQ:BYRN) operates as a less-lethal self-defense technology company that develops, manufactures, and sells innovative, less-lethal personal security solutions. It manufactures the Byrna SD personal security device, which is a CO2-powered launcher that acts as a firearm alternative for law enforcement, private security, and consumer markets. The company operates through the following geographical segments: the United States, South Africa, Europe, South America, Asia, and Canada.
Byrna Technologies Inc. (NASDAQ:BYRN) reported a notable 57% year-over-year growth in its net revenue, going from $16.7 million in fiscal Q1 2024 to $26.2 million in fiscal Q1 2025. This growth was attributed to channel expansion, strong sales momentum, and broader brand adoption, all reflecting Byrna Technologies Inc.’s (NASDAQ:BYRN) strategic initiatives to expand its market share.
The company’s expansion into online platforms and retail has also brought positive investor sentiments, as Amazon sales made up 32.6% of its total direct-to-consumer sales by the end of fiscal Q1 2025, undergoing a 19.3% growth from fiscal Q1 2024. Byrna Technologies Inc. (NASDAQ:BYRN) also bolstered its retail presence through partnerships with major chains, including Sportsman’s Warehouse.
On April 11, Roth MKM analyst Matt Koranda maintained a Buy rating on Byrna Technologies Inc. (NASDAQ:BYRN) and set a price target of $33.00. On April 19, COO John Brasseur expressed confidence in the company by recently purchasing 728 shares of its stock. The transaction was valued at $14,698, reflecting a strong vote of confidence in Byrna Technologies Inc.’s (NASDAQ:BYRN) future operations and ranking it sixth on our list of the top prison and law enforcement stocks to invest in.
4. Wrap Technologies, Inc. (NASDAQ:WRAP)
Analyst Upside: 61.29%
Number of Hedge Fund Holders: 2
Wrap Technologies, Inc. (NASDAQ:WRAP) is a global public safety technology and service company that provides modern policing solutions to law enforcement and security personnel. Its products include Wrap Reality and BolaWrap Remote Restraint Device. In its recent earnings call, the company expressed a cautiously optimistic sentiment, reporting significant financial metric improvements and strategic initiatives focused on driving future growth.
Although Wrap Technologies, Inc. (NASDAQ:WRAP) faced challenges such as elongated timelines for international deals and declining revenue, investors are bullish on the stock, and its median price target of $1.55 implies a 61.29% upside from current levels, ranking it fifth on our list of the best prison and law enforcement stocks to invest in. The company is actively addressing its issues, expanding its federal market presence and focusing on research.
Wrap Technologies, Inc. (NASDAQ:WRAP) also reported a significant improvement in financial metrics, including a 17% reduction in operating losses, going from $18.75 million in 2023 to $15.6 million in 2024. Net losses also saw a notable improvement of 81%, decreasing from $30.2 million in 2023 to $5.9 million in 2024. These metrics reflect Wrap Technologies, Inc.’s (NASDAQ:WRAP) initiatives to improve its financial standing and streamline its operations.
3. SuperCom Ltd. (NASDAQ:SPCB)
Analyst Upside: 76.32%
Number of Hedge Fund Holders: 2
SuperCom Ltd. (NASDAQ:SPCB) provides traditional and digital identity solutions, offering tracking, identification, and security products to government, private, and public organizations. The company operates through the Cyber Security, Internet of Things (IoT), and e-Gov segments. It ranks fourth on our list of the best prison and law enforcement stocks to buy according to analysts.
The company recently acquired a new contract with a significant Midwest-based service provider, which is expected to expedite its entrance into three additional US states: Minnesota, Wisconsin, and Michigan. The provider’s established market presence is anticipated to support this growth and expedite SuperCom Ltd.’s (NASDAQ:SPCB) nationwide expansion momentum. The provider is also well-positioned to route the company’s technology into a range of high-impact community programs, with a solid focus on domestic violence monitoring, bringing positive sentiments to its future operations.
For the first nine months ending September 30, SuperCom Ltd. (NASDAQ:SPCB) reported a revenue increase to $21.3 million from $20.9 million, while gross profit increased to $10.7 million from $7.9 million. Gross profit margin also rose to 50.1% from 37.7%, highlighting its positive operations.
2. VirTra, Inc. (NASDAQ:VTSI)
Analyst Upside: 104.71%
Number of Hedge Fund Holders: 4
VirTra, Inc. (NASDAQ:VTSI) provides judgmental use of firearms training simulators, force training simulators, and driving simulators for law enforcement, military, commercial, and educational markets. Its simulators employ hardware, software, and content that create realistic training mechanisms without using live ammunition.
In its latest fiscal Q4 2024 earnings report, the company reported a notable 37% growth in its Q4 bookings to $12.2 million and an expanded year-end backlog of $22.0 million. These trends emerged amid challenges in federal funding. VirTra, Inc. (NASDAQ:VTSI) also attained key contracts in Latin America and Europe and closed the first sale of its V-XR® training platform in Canada, marking its expansion into international markets.
Although the company is facing challenges such as falling revenue, it maintained a strong working capital position of $34.8 million, supporting its growth initiatives. For the future, VirTra, Inc. (NASDAQ:VTSI) is focused on expanding its role in federal law enforcement training initiatives and navigating federal funding variability. In a report released on March 28, Richard Baldry from Roth MKM maintained a Buy rating on the company and set a price target of $9.50.
1. Genasys Inc. (NASDAQ:GNSS)
Analyst Upside: 165.49%
Number of Hedge Fund Holders: 9
Genasys Inc. (NASDAQ:GNSS) provides critical communications software and hardware solutions and a multi-channel approach that delivers geo-targeted alerts, instructions, notifications, and information before, during, and after critical business events and public safety threats. The company’s operations are divided into Hardware and Software segments, and its communications platform includes Genasys Emergency Management (GEM) applications, National Emergency Warning Systems (NEWS), and LRAD long-range voice broadcast systems.
On April 2, Genasys Inc. (NASDAQ:GNSS) announced Long Range Acoustic Device (LRAD) orders from the US Military valued at $2.5 million. The orders include LRADs for Army, Air Force, and Navy units stationed in the US and overseas. The company’s recent earnings also presented an optimistic picture, reflecting significant improvements in profit margins and revenue. It underwent a notable revenue growth over the prior-year quarter, with total software revenue undergoing a 64% year-over-year growth and recurring software revenue increasing by 69% year-over-year. This growth reflects Genasys Inc.’s (NASDAQ:GNSS) successful strategy in expanding its software offerings. On February 12, Northland Securities analyst Michael Latimore maintained a buy rating for the company and set a price target of $6.00.
Overall, GNSS ranks first among the best prison and law enforcement stocks. While we acknowledge the potential of prison and law enforcement stocks, 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 GNSS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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