Private prison stocks are rising on Trump's appointment of immigration hardliner Tom Homan

Private prison populations rose Monday after President-elect Donald Trump named immigration hardliner Tom Homan as his “border czar.”

The Geo group And CoreCivic rose more than 4% and nearly 8%, respectively, in premarket trading. Homan served as head of Immigration and Customs Enforcement during Trump's first term.

Trump said on Truth Social on Sunday that Homan “will be responsible for all deportations of illegal aliens to their country of origin.” Homan will be responsible for the southern border, the northern border and all maritime and air security, Trump said.

Homan said at a conservative conference in July that he will conduct “the largest deportation operation this country has ever seen” if Trump returns to office.

“With Trump returning to the White House, there will be far stronger support for Geo Group and CXW,” BTIG analyst Isaac Boltansky told clients in a Nov. 6 note. The second Trump administration would allow contracts with the U.S. Marshals Services and the Federal Bureau of Prisons, Boltansky said.

“More importantly, they would take a much more aggressive stance in border enforcement, which would impact these firms' ICE businesses,” the analyst told clients.