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Ensign Group (ENSG) Up 26% in a Year: More Room to Run?
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Shares of The Ensign Group, Inc. (ENSG - Free Report) have gained 25.9% in a year, compared with the industry’s 18.5% growth. The Medical sector fell 7.5% but the S&P 500 composite index rallied 14.6% in the same time frame. With a market capitalization of $5.2 billion, the average volume of shares traded in the last three months were 0.3 million.
Image Source: Zacks Investment Research
Rising skilled services revenues, active pursuit of facility buyouts and a solid cash position continue to drive Ensign Group.
The leading healthcare services provider, presently carrying a Zacks Rank #2 (Buy), has a decent track record of beating estimates in one of the trailing four quarters, matching the mark twice and missing the same on the remaining one occasion, the average beat being 0.45%.
Can ENSG Retain the Momentum?
The Zacks Consensus Estimate for Ensign Group’s 2023 earnings is pegged at $4.70 per share, indicating a 13.5% increase from the 2022 reported figure. The same for revenues stands at $3.7 billion, suggesting a 22.2% increase from the year-ago figure. It has witnessed two upward estimate revisions compared to none for 2023 earnings over the past 30 days.
Improved skilled services revenues from catering to patients under Medicare and Medicaid programs continue to drive Ensign Group’s revenues. Management forecasts revenues within $3.68-$3.73 billion in 2023, the midpoint of which indicates an improvement of 22.5% from the 2022 figure.
An aging U.S. population is likely to sustain the solid demand for senior living services provided by ENSG and generate greater revenues, primarily from private pay sources. The dire need for effective rehabilitation services that empower individuals to resume daily life activities is expected to boost service revenues in the days ahead. Ensign Group also makes investments in new business lines, such as ancillary services, in a bid to diversify its revenue base.
A growing real estate portfolio is expected to generate higher rental revenues and therefore, contribute to improved earnings in the days ahead. Ensign Group earns rental revenues from leasing the post-acute care properties that it had purchased from healthcare operators under triple-net lease arrangements. Out of its 108 real estate properties, 29 presently fall under the bracket of triple-net long-term leases.
Ensign Group boasts an active history with regard to skilled nursing and senior living facility acquisitions. Such initiatives build up capabilities, bolster the healthcare portfolio, expand geographical presence and offer ENSG a precise understanding of regional needs by working with a local team of caregivers. This, in turn, enables it to devise healthcare services that fit the needs of different U.S. regions. Ensign Group currently operates 290 healthcare facilities across 13 U.S. states.
A sound financial position provides a cushion for ENSG to pursue uninterrupted growth-related initiatives. Growing cash reserves bear testament to its financial strength. ENSG remains quite active in rewarding shareholders through share buybacks and dividend payments. Management has consecutively raised dividends for two straight decades.
Ensign Group boasts an impressive VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
ANI Pharmaceuticals’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 68.64%. The consensus estimate for ANIP’s 2023 earnings is pegged at $3.31 per share, which has more than doubled from the year-ago reported figure. The same for revenues indicates growth of 27.1% from the year-ago reported figure.
The consensus estimate for ANIP’s 2023 earnings has moved 36.8% north in the past 60 days. Shares of ANI Pharmaceuticals have gained 82.5% in the past year.
ICU Medical’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 9.49%. The consensus estimate for ICUI’s 2023 earnings indicates a rise of 7.3%, while the same for revenues suggests an improvement of 1.3% from the corresponding year-ago reported estimates.
The consensus estimate for ICUI’s 2023 earnings has moved 7.3% north in the past 60 days. Shares of ICU Medical have gained 7.2% in a year.
Zimmer Biomet’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.38%. The Zacks Consensus Estimate for ZBH’s 2023 earnings suggests an improvement of 8.1%, while the same for revenues indicates growth of 5.7% from the respective year-ago reported figures.
The consensus estimate for ZBH’s 2023 earnings has moved 5.8% north in the past 60 days. Shares of Zimmer Biomet have rallied 39.6% in the past year.
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Ensign Group (ENSG) Up 26% in a Year: More Room to Run?
Shares of The Ensign Group, Inc. (ENSG - Free Report) have gained 25.9% in a year, compared with the industry’s 18.5% growth. The Medical sector fell 7.5% but the S&P 500 composite index rallied 14.6% in the same time frame. With a market capitalization of $5.2 billion, the average volume of shares traded in the last three months were 0.3 million.
Image Source: Zacks Investment Research
Rising skilled services revenues, active pursuit of facility buyouts and a solid cash position continue to drive Ensign Group.
The leading healthcare services provider, presently carrying a Zacks Rank #2 (Buy), has a decent track record of beating estimates in one of the trailing four quarters, matching the mark twice and missing the same on the remaining one occasion, the average beat being 0.45%.
Can ENSG Retain the Momentum?
The Zacks Consensus Estimate for Ensign Group’s 2023 earnings is pegged at $4.70 per share, indicating a 13.5% increase from the 2022 reported figure. The same for revenues stands at $3.7 billion, suggesting a 22.2% increase from the year-ago figure. It has witnessed two upward estimate revisions compared to none for 2023 earnings over the past 30 days.
Improved skilled services revenues from catering to patients under Medicare and Medicaid programs continue to drive Ensign Group’s revenues. Management forecasts revenues within $3.68-$3.73 billion in 2023, the midpoint of which indicates an improvement of 22.5% from the 2022 figure.
An aging U.S. population is likely to sustain the solid demand for senior living services provided by ENSG and generate greater revenues, primarily from private pay sources. The dire need for effective rehabilitation services that empower individuals to resume daily life activities is expected to boost service revenues in the days ahead. Ensign Group also makes investments in new business lines, such as ancillary services, in a bid to diversify its revenue base.
A growing real estate portfolio is expected to generate higher rental revenues and therefore, contribute to improved earnings in the days ahead. Ensign Group earns rental revenues from leasing the post-acute care properties that it had purchased from healthcare operators under triple-net lease arrangements. Out of its 108 real estate properties, 29 presently fall under the bracket of triple-net long-term leases.
Ensign Group boasts an active history with regard to skilled nursing and senior living facility acquisitions. Such initiatives build up capabilities, bolster the healthcare portfolio, expand geographical presence and offer ENSG a precise understanding of regional needs by working with a local team of caregivers. This, in turn, enables it to devise healthcare services that fit the needs of different U.S. regions. Ensign Group currently operates 290 healthcare facilities across 13 U.S. states.
A sound financial position provides a cushion for ENSG to pursue uninterrupted growth-related initiatives. Growing cash reserves bear testament to its financial strength. ENSG remains quite active in rewarding shareholders through share buybacks and dividend payments. Management has consecutively raised dividends for two straight decades.
Ensign Group boasts an impressive VGM Score of B. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space are ANI Pharmaceuticals, Inc. (ANIP - Free Report) , ICU Medical, Inc. (ICUI - Free Report) and Zimmer Biomet Holdings, Inc. (ZBH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ANI Pharmaceuticals’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 68.64%. The consensus estimate for ANIP’s 2023 earnings is pegged at $3.31 per share, which has more than doubled from the year-ago reported figure. The same for revenues indicates growth of 27.1% from the year-ago reported figure.
The consensus estimate for ANIP’s 2023 earnings has moved 36.8% north in the past 60 days. Shares of ANI Pharmaceuticals have gained 82.5% in the past year.
ICU Medical’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 9.49%. The consensus estimate for ICUI’s 2023 earnings indicates a rise of 7.3%, while the same for revenues suggests an improvement of 1.3% from the corresponding year-ago reported estimates.
The consensus estimate for ICUI’s 2023 earnings has moved 7.3% north in the past 60 days. Shares of ICU Medical have gained 7.2% in a year.
Zimmer Biomet’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.38%. The Zacks Consensus Estimate for ZBH’s 2023 earnings suggests an improvement of 8.1%, while the same for revenues indicates growth of 5.7% from the respective year-ago reported figures.
The consensus estimate for ZBH’s 2023 earnings has moved 5.8% north in the past 60 days. Shares of Zimmer Biomet have rallied 39.6% in the past year.