Ensign (ENSG) Buys 2 Nursing Facilities in Tennessee & Nevada
The Ensign Group, Inc. ENSG announced that it bought the operations of a nursing facility in Harrogate, TN. It has also acquired the operations of a nursing facility in Sparks, NV. Both the buyouts (with long-term, triple net leases) had an effective date of Jan 1, 2024.
The 116-bed unit in Harrogate, named TriState Health and Rehabilitation Center, is ENSG’s first skilled nursing facility in Tennessee. The company has been evaluating prospects in and around the state for a while and expects this acquisition to create significant growth opportunities in the state.
The other acquisition, the 125-bed Hearthstone Health and Rehabilitation facility in Nevada, is likely to boost its footprint in the region. The company has witnessed growth in the area over the last two years and the new buyout will likely add to the momentum.
The acquisition deals have increased Ensign's portfolio to encompass 299 healthcare operations spanning 14 states. Of the total, 27 also have senior living operations. The company, along with its subsidiaries like Standard Bearer, now owns 113 real estate properties.
ENSG boasts a strong inorganic growth story. The company remains committed to pursuing opportunities for acquiring real estate and leasing both successful and struggling skilled nursing, senior living and other healthcare-related operations.
The Zacks Consensus Estimate for Ensign’s 2023 earnings indicates 15% year-over-year growth to $4.76 per share. It beat earnings estimates thrice in the past four quarters and met once, with an average surprise of 1.5%. Also, the consensus mark for 2023 revenues indicates a 23.1% jump from a year ago.
Price Performance
Shares of Ensign have jumped 19.5% in the past six months compared with the industry’s 4.4% growth.
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Zacks Rank & Other Key Picks
The company currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Medical space are Brookdale Senior Living Inc. BKD, Enovis Corporation ENOV and Motus GI Holdings, Inc. MOTS, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Brookdale Senior’s full-year 2023 earnings indicates a 49.6% year-over-year improvement. HQY beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 23.5%.
The Zacks Consensus Estimate for Enovis’ 2023 full-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Motus GI’s 2023 bottom line suggests a 67.2% year-over-year improvement. MOTS has witnessed one upward estimate revision over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 40.2%.
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