The Ensign Group, Inc. (ENSG - Free Report) recently announced that Cornerstone Healthcare, its home health and hospice portfolio subsidiary, has acquired Abilene, TX-based Kinder Hearts Home Health and Hospice. Financial terms of the deal have been kept under wraps. However, the company expects the operations to be accretive to earnings in 2016.
Coming to share price movement, Ensign Group gained 0.7% to close at $19.54 following the news.
Management is highly optimistic about this deal. The buyout of Kinder Hearts is expected to fortify Cornerstone’s footprint in Texas and also expand its overall operations. Post-closing, this buyout is expected to add value to Ensign Group’s healthcare platform, courtesy of Kinder Hearts’ 15-year legacy of first-class home health and hospice care and service.
While, at present, the market has taken the buyout news positively, a further analysis of the trends reveal dull sentiments as Ensign Group represents a negative one-year return of 18.1%, comparing unfavorably with the positive S&P 500’s return of 10.1% over the same time frame. Nevertheless, we believe that the recent development will help the company overcome the adversities to some extent.
Notably, Cornerstone’s subsidiaries currently have 17 home-health operations, 17 hospice facilities and three homecare operations across nine states within the U.S. On that note, management added that Cornerstone is aggressively taking over high performing as well as struggling home health, hospice, and home care facilities across the nation.
Zacks Rank & Key Picks
Ensign Group currently has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the broader medical sector include CryoLife Inc. , Masimo Corporation (MASI - Free Report) and IDEXX Laboratories Inc. (IDXX - Free Report) . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The Ensign Group, Inc. (ENSG - Free Report) recently announced that Cornerstone Healthcare, its home health and hospice portfolio subsidiary, has acquired Abilene, TX-based Kinder Hearts Home Health and Hospice. Financial terms of the deal have been kept under wraps. However, the company expects the operations to be accretive to earnings in 2016.
Coming to share price movement, Ensign Group gained 0.7% to close at $19.54 following the news.
Management is highly optimistic about this deal. The buyout of Kinder Hearts is expected to fortify Cornerstone’s footprint in Texas and also expand its overall operations. Post-closing, this buyout is expected to add value to Ensign Group’s healthcare platform, courtesy of Kinder Hearts’ 15-year legacy of first-class home health and hospice care and service.
While, at present, the market has taken the buyout news positively, a further analysis of the trends reveal dull sentiments as Ensign Group represents a negative one-year return of 18.1%, comparing unfavorably with the positive S&P 500’s return of 10.1% over the same time frame. Nevertheless, we believe that the recent development will help the company overcome the adversities to some extent.
Notably, Cornerstone’s subsidiaries currently have 17 home-health operations, 17 hospice facilities and three homecare operations across nine states within the U.S. On that note, management added that Cornerstone is aggressively taking over high performing as well as struggling home health, hospice, and home care facilities across the nation.
Zacks Rank & Key Picks
Ensign Group currently has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the broader medical sector include CryoLife Inc. , Masimo Corporation (MASI - Free Report) and IDEXX Laboratories Inc. (IDXX - Free Report) . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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