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Ensign Group (ENSG) Gains But Lags Market: What You Should Know

Zacks Equity Research

Ensign Group (ENSG) closed at $41.99 in the latest trading session, marking a +1.18% move from the prior day. The stock lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.

ENSG will be looking to display strength as it nears its next earnings release. In that report, analysts expect ENSG to post earnings of $0.57 per share. This would mark year-over-year growth of 5.56%. Our most recent consensus estimate is calling for quarterly revenue of $573.24 million, down 0.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.54 per share and revenue of $2.39 billion, which would represent changes of +13.39% and +4.44%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ENSG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% lower. ENSG is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ENSG currently has a Forward P/E ratio of 16.36. This represents a no noticeable deviation compared to its industry's average Forward P/E of 16.36.

It is also worth noting that ENSG currently has a PEG ratio of 1.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Nursing Homes was holding an average PEG ratio of 1.09 at yesterday's closing price.

The Medical - Nursing Homes industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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