Ensign (ENSG) Buys Providence Place Nursing Facility in Kansas
The Ensign Group, Inc. ENSG recently announced that it bought the operations of a nursing facility in Kansas City. The 45-bed unit, named Providence Place, is located on the Providence Medical Center campus.
The company has been evaluating prospects in Kansas for a while and the latest acquisition is expected to create significant growth opportunities in the state. The move will likely boost its footprint in the region. The effective date of the Providence Place acquisition was Oct 1, 2023.
The latest deal increased Ensign's portfolio to encompass 296 healthcare operations spanning 13 states. Of the total, 26 also have senior living operations. The company, along with its subsidiaries like Standard Bearer, now owns 112 real estate properties.
ENSG continues to pursue opportunities to purchase real estate and lease both successful, as well as struggling skilled nursing, senior living and other healthcare-related operations across the country. The company boasts a strong inorganic growth story. Its proficiency in acquiring real estate or leasing post-acute care operations and subsequently turning them into industry leaders plays a pivotal role in enhancing its profitability.
The Zacks Consensus Estimate for Ensign’s 2023 earnings indicates 14.7% year-over-year growth to $4.75 per share. It beat earnings estimates twice in the past four quarters, met once and missed on the other occasion. Also, the consensus mark for 2023 revenues indicates a 22.7% jump from a year ago.
Price Performance
Shares of Ensign have jumped 8.9% in the past year compared with the industry’s 5.1% 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 Select Medical Holdings Corporation SEM, Tenet Healthcare Corporation THC and Atai Life Sciences N.V. ATAI, 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 Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for Tenet Healthcare’s 2023 bottom line is pegged at $5.73 per share, which rose 0.7% in the past 60 days. During this time, THC has witnessed one upward estimate revision against none in the opposite direction. It beat earnings estimates in all the last four quarters, with the average surprise being 25.9%.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion.
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
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atai Life Sciences N.V. (ATAI) : Free Stock Analysis Report
The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
