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Ensign Group Rides on Inorganic Growth, High Expenses Hurt
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The Ensign Group, Inc.’s (ENSG - Free Report) inorganic growth story remains impressive. The company has expertise in acquiring real estate or leasing post-acute care operations and transforming them into market leaders. These efforts have made the company well poised for long-term growth.
The company has seen a consistent growth in its top line since 2012. Apart from inorganic growth, the consistent strong performance of its Transitional & Skilled Services segment has contributed significantly to its revenue growth. The trend continued in the first nine months of 2017 as well.
The company’s healthy balance sheet also enables it to take up several growth oriented capital deployment initiatives. It has been a dividend-paying company since 2002 and has increased its pay-out annually for the past 14 years. Frequent share repurchases and regular dividends payments have helped it retain investors’ confidence in this stock. In a year, its shares have gained 13.2% while the industry declined nearly 7%.
However, the company suffers from rising level of long-term debt since 2011. The trend continued in first nine months of 2017 as well. This rising level of debt not only raises financial risks but also increases interest expenses which, in turn, weigh on the margins.
Increasing operating expenses has also remained a major headwind. This has been severely affecting the company’s bottom line.
Investors interested in the Medical sector can consider stocks like Triple-S Management Corporation , Centene Corporation (CNC - Free Report) and The Joint Corp. (JYNT - Free Report) . While Triple-S Management sports a Zacks Rank #1, the other two stocks carry a Zacks Rank #2 (Buy).
Triple-S Management the leading managed care company in Puerto Rico. It delivered positive surprises in two of the last four quarters, with an average beat of 74%.
Centene is a leading multi-line healthcare enterprise that delivered positive surprises in each of the last four quarters with an average beat of 10.6%.
Joint Corp owns, operates, franchises, supports and manages chiropractic clinics in the United States. The company delivered positive surprises in three of the last four quarters, with an average beat of 5.5%.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Ensign Group Rides on Inorganic Growth, High Expenses Hurt
The Ensign Group, Inc.’s (ENSG - Free Report) inorganic growth story remains impressive. The company has expertise in acquiring real estate or leasing post-acute care operations and transforming them into market leaders. These efforts have made the company well poised for long-term growth.
The company has seen a consistent growth in its top line since 2012. Apart from inorganic growth, the consistent strong performance of its Transitional & Skilled Services segment has contributed significantly to its revenue growth. The trend continued in the first nine months of 2017 as well.
The company’s healthy balance sheet also enables it to take up several growth oriented capital deployment initiatives. It has been a dividend-paying company since 2002 and has increased its pay-out annually for the past 14 years. Frequent share repurchases and regular dividends payments have helped it retain investors’ confidence in this stock. In a year, its shares have gained 13.2% while the industry declined nearly 7%.
However, the company suffers from rising level of long-term debt since 2011. The trend continued in first nine months of 2017 as well. This rising level of debt not only raises financial risks but also increases interest expenses which, in turn, weigh on the margins.
Increasing operating expenses has also remained a major headwind. This has been severely affecting the company’s bottom line.
Zacks Rank & Stocks to Consider
Ensign Group presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the Medical sector can consider stocks like Triple-S Management Corporation , Centene Corporation (CNC - Free Report) and The Joint Corp. (JYNT - Free Report) . While Triple-S Management sports a Zacks Rank #1, the other two stocks carry a Zacks Rank #2 (Buy).
Triple-S Management the leading managed care company in Puerto Rico. It delivered positive surprises in two of the last four quarters, with an average beat of 74%.
Centene is a leading multi-line healthcare enterprise that delivered positive surprises in each of the last four quarters with an average beat of 10.6%.
Joint Corp owns, operates, franchises, supports and manages chiropractic clinics in the United States. The company delivered positive surprises in three of the last four quarters, with an average beat of 5.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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