Are Investors Undervaluing The Ensign Group (ENSG) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 an A grade for Value. The stock is trading with a P/E ratio of 19.06, which compares to its industry's average of 44.57. Over the past year, ENSG's Forward P/E has been as high as 23.14 and as low as 16.45, with a median of 19.28.
We also note that ENSG holds a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ENSG's PEG compares to its industry's average PEG of 2.32. Over the past 52 weeks, 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 3.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.63. Over the past year, ENSG's P/B has been as high as 4.54 and as low as 3.62, with a median of 4.09.
Finally, our model also underscores that ENSG has a P/CF ratio of 17.72. 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 current P/CF looks attractive when compared to its industry's average P/CF of 19.77. 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 18.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Ensign Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ENSG feels like a great value stock at the moment.
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The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
