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

Zacks Equity Research
·3 mins read

In the latest trading session, Ensign Group (ENSG) closed at $35.49, marking a +1.75% move from the previous day. This move lagged the S&P 500's daily gain of 2.29%. At the same time, the Dow added 1.99%, and the tech-heavy Nasdaq gained 2.81%.

Coming into today, shares of the provider of nursing and rehabilitative care services had lost 7.09% in the past month. In that same time, the Medical sector gained 22.38%, while the S&P 500 gained 19.13%.

Wall Street will be looking for positivity from ENSG as it approaches its next earnings report date. The company is expected to report EPS of $0.62, up 12.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $578.59 million, up 5.35% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $2.39 billion. These totals would mark changes of +13.84% and +4.59%, respectively, from last year.

Any recent changes to analyst estimates for ENSG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. ENSG currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, ENSG is currently trading at a Forward P/E ratio of 13.7. This represents a no noticeable deviation compared to its industry's average Forward P/E of 13.7.

Also, we should mention that ENSG has a PEG ratio of 0.91. 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. ENSG's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Medical - Nursing Homes industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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