Should Value Investors Buy The Ensign Group (ENSG) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is The Ensign Group (ENSG). 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 18.72, which compares to its industry's average of 41.81. Over the past 52 weeks, ENSG's Forward P/E has been as high as 23.14 and as low as 17.12, with a median of 19.32.
Investors should also note that ENSG holds a PEG ratio of 1.25. 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 industry has an average PEG of 2.18 right now. Within the past year, ENSG's PEG has been as high as 1.54 and as low as 1.14, with a median of 1.29.
Investors should also recognize that ENSG has a P/B ratio of 3.92. The P/B ratio is used to compare a stock's market value with 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 4.51. Over the past year, ENSG's P/B has been as high as 4.54 and as low as 3.68, with a median of 4.09.
Finally, investors will want to recognize that ENSG has a P/CF ratio of 17.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ENSG's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. Within the past 12 months, ENSG's P/CF has been as high as 20.05 and as low as 16.11, with a median of 18.13.
These are just a handful of the figures considered in The Ensign Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ENSG is an impressive value stock right now.
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The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
