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The Ensign Group Buys 15 Assisted Living Operation Assets
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The Ensign Group, Inc. (ENSG - Free Report) recently announced that it has acquired the underlying real estate of 15 assisted living operations in Wisconsin. The acquisition was funded with the cash from the company’s revolver that became effective on Dec 21, 2016. Prior to this buyout, a subsidiary of the Ensign Group was assigned the task of operating each facility since Aug 2015 under a lease agreement that also involved a purchase option.
The Ensign Group boasts a strong inorganic growth story since 2008. To this end, the company has acquired real estate or leased post-acute care operations, transforming the same into market leaders. During the first nine months of 2016, The Ensign Group added two home health agencies and four hospice agencies along with acquiring 19 stand-alone skilled nursing operations. With the latest acquisition, The Ensign Group owns the underlying real estate in 50 of its 209 operations.
These acquisitions have not only positioned the company for robust organic improvement, but also generated immense confidence among investors regarding the stock. This is evidenced from the outstanding performance of the stock in comparison with the broader industry. Shares of the company have gained 0.5% year to date, while the Zacks categorized Nursing Homes industry has lost 13%.
In the previous month, The Ensign Group’s unit – Cornerstone Healthcare – completed the acquisition of certain assets of River City Hospice LLC. The strategic acquisition not only bolstered the company’s long-term growth, but also opened up vast opportunities by expanding its presence in the Coeur d’Alene region.
Coming back to the present takeover, management believes that this strategic move will refocus on the company’s commitment to the healthcare community in Wisconsin. The Ensign Group also expects its association with the experienced and dedicated teams of each of the acquired operations to strengthen its operational efficiency.
Zacks Rank and Stocks to Consider:
The Ensign Group presently has a Zacks Rank #4 (Sell).
Investors can look at some better-ranked stocks from the medical sector like WellCare Health Plans Inc. , Magellan Health Inc. and UnitedHealth Group, Inc. (UNH - Free Report) .
Magellan delivered positive surprises in three of the last four quarters with an average beat of 42.58%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WellCare delivered positive surprises in all of the last four quarters with an average beat of 40.01%. The company also has a Zacks Rank #1.
UnitedHealth delivered positive surprise in three of the last four quarters with an average beat of 3.86%. It carries a Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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The Ensign Group Buys 15 Assisted Living Operation Assets
The Ensign Group, Inc. (ENSG - Free Report) recently announced that it has acquired the underlying real estate of 15 assisted living operations in Wisconsin. The acquisition was funded with the cash from the company’s revolver that became effective on Dec 21, 2016. Prior to this buyout, a subsidiary of the Ensign Group was assigned the task of operating each facility since Aug 2015 under a lease agreement that also involved a purchase option.
The Ensign Group boasts a strong inorganic growth story since 2008. To this end, the company has acquired real estate or leased post-acute care operations, transforming the same into market leaders. During the first nine months of 2016, The Ensign Group added two home health agencies and four hospice agencies along with acquiring 19 stand-alone skilled nursing operations. With the latest acquisition, The Ensign Group owns the underlying real estate in 50 of its 209 operations.
These acquisitions have not only positioned the company for robust organic improvement, but also generated immense confidence among investors regarding the stock. This is evidenced from the outstanding performance of the stock in comparison with the broader industry. Shares of the company have gained 0.5% year to date, while the Zacks categorized Nursing Homes industry has lost 13%.
In the previous month, The Ensign Group’s unit – Cornerstone Healthcare – completed the acquisition of certain assets of River City Hospice LLC. The strategic acquisition not only bolstered the company’s long-term growth, but also opened up vast opportunities by expanding its presence in the Coeur d’Alene region.
Coming back to the present takeover, management believes that this strategic move will refocus on the company’s commitment to the healthcare community in Wisconsin. The Ensign Group also expects its association with the experienced and dedicated teams of each of the acquired operations to strengthen its operational efficiency.
Zacks Rank and Stocks to Consider:
The Ensign Group presently has a Zacks Rank #4 (Sell).
Investors can look at some better-ranked stocks from the medical sector like WellCare Health Plans Inc. , Magellan Health Inc. and UnitedHealth Group, Inc. (UNH - Free Report) .
Magellan delivered positive surprises in three of the last four quarters with an average beat of 42.58%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WellCare delivered positive surprises in all of the last four quarters with an average beat of 40.01%. The company also has a Zacks Rank #1.
UnitedHealth delivered positive surprise in three of the last four quarters with an average beat of 3.86%. It carries a Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>