Here's Why ENSG Shares Are Attracting Prudent Investors Now

The Ensign Group Inc. ENSG is a healthcare services company that provides services in the post-acute care continuum, urgent care centers and mobile ancillary businesses in the United States. The company operates through two reportable segments: Skilled Services and Standard Bearer. ENSG has risen 23.8% in the past year, outperforming the industry’s average growth of 17.3%.Headquartered in San Juan Capistrano, CA, ENSG holds a market capitalization of $8.7 billion. It is also engaged in the acquisition, development and leasing of skilled nursing, and provides senior living services. Its forward P/E ratio of 23.01X is lower than the industry average of 45.06X.Courtesy of solid prospects, ENSG currently carries a Zacks Rank #2 (Buy).Where Do Estimates for ENSG Stand?The Zacks Consensus Estimate for The Ensign Group’s 2025 earnings is pegged at $6.29 per share, indicating a 14.4% year-over-year rise. In the past 60 days, it has witnessed three upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $4.9 billion for 2025, implying a 15% year-over-year rise. It beat earnings estimates in each of the past four quarters, with an average surprise of 1.6%.The Ensign Group, Inc. Price and EPS Surprise The Ensign Group, Inc. price-eps-surprise | The Ensign Group, Inc. QuoteENSG’s Growth DriversThe Ensign Group’s revenues have grown over the past few years, primarily driven by service revenues, strategic acquisitions and rental income. The combination of improvements in occupancy and skilled mix in its operations and long-term growth in acquired operations shows organic growth potential. It aims to continue its optimization of operational efficiencies, expand services and create new partnerships, which will drive further improvements in occupancy and skilled mix. Since 2024, the company has added 47 new operations across several markets.ENSG’s skilled services unit’s revenues witnessed 15.9% year-over-year growth in the first quarter of 2025 to $1.12 billion. Its standard bearer segment’s revenues grew 27.9% year over year to $28.4 million in the same quarter. The company increased its 2025 annual revenue guidance range to $4.89-$4.94 billion from $4.83-$4.91 billion.Its total debt is 7% of its capital, much lower than the industry’s average of 86.2%. The Ensign Group bought back shares worth $10.8 million in the first quarter of 2025. During the same time frame, the company paid dividends worth $3.6 million. This highlights its shareholder value-boosting efforts.ENSG: Risks to WatchThere are some factors, however, that investors should keep a careful eye on.The company’s total expenses have escalated over the last several years due to higher costs of services and rent. Total expenses witnessed a year-over-year increase of 27.3% in 2023, 12.3% in 2024 and 15.5% in the first quarter of 2025. The persistent escalation of expenses might weigh on its margin growth. ENSG’s free cash flow is volatile in nature, which decreased 23.8% year over year in the first quarter of 2025.Other Key PicksSome other top-ranked stocks in the Medical space are Encompass Health Corp EHC, GeneDx Holdings Corp WGS and Integer Holdings Corporation ITGR, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed eight upward revisions in the past 60 days against no movement in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, suggesting 9.5% year-over-year growth.The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 million, suggesting 22.5% year-over-year growth.The Zacks Consensus Estimate for Integer Holdings’ current-year earnings of $6.33 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Integer Holdings beat earnings estimates in three of the trailing four quarters and missed once, with an average surprise being 2.8%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 7.7% year-over-year growth.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis Report Encompass Health Corporation (EHC): Free Stock Analysis Report GeneDx Holdings Corp. (WGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks