Should You Buy The Ensign Group Inc (NASDAQ:ENSG) At $22.81?
The Ensign Group Inc (NASDAQ:ENSG), a healthcare company based in United States, received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $24.7 at one point, and dropping to the lows of $21.93. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Ensign Group’s current trading price of $22.81 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Ensign Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Ensign Group
What is Ensign Group worth?
Great news for investors – Ensign Group is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $32.77, but it is currently trading at $22.81 on the share market, meaning that there is still an opportunity to buy now. Ensign Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Ensign Group generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 91.58% over the next couple of years, the future seems bright for Ensign Group. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since Ensign Group is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Ensign Group for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Ensign Group. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Ensign Group. You can find everything you need to know about Ensign Group in the latest infographic research report. If you are no longer interested in Ensign Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
