Is The Ensign Group (ENSG) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
The Ensign Group (ENSG) is a stock many investors are watching right now. ENSG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 18.89, which compares to its industry's average of 44.31. ENSG's Forward P/E has been as high as 23.14 and as low as 16.45, with a median of 19.31, all within the past year.
Investors should also note that ENSG holds a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENSG's PEG compares to its industry's average PEG of 2.31. Over the last 12 months, ENSG's PEG has been as high as 1.54 and as low as 1.10, with a median of 1.29.
Investors should also recognize that ENSG has a P/B ratio of 3.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.50. Over the past 12 months, ENSG's P/B has been as high as 4.54 and as low as 3.62, with a median of 4.11.
Finally, we should also recognize that ENSG has a P/CF ratio of 17.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ENSG's P/CF compares to its industry's average P/CF of 19.22. Over the past year, ENSG's P/CF has been as high as 20.05 and as low as 15.88, with a median of 18.14.
These are only a few of the key metrics included in The Ensign Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ENSG looks like an impressive value stock at the moment.
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The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
