The Ensign Group, Inc. (ENSG) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Ensign Group (ENSG). Shares have been marching higher, with the stock up 9.3% over the past month. The stock hit a new 52-week high of $174.98 in the previous session. Ensign Group has gained 29.9% since the start of the year compared to the -2.1% move for the Zacks Medical sector and the 20.1% return for the Zacks Medical - Nursing Homes industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 24, 2025, Ensign Group reported EPS of $1.59 versus consensus estimate of $1.54 while it beat the consensus revenue estimate by 1.77%.For the current fiscal year, Ensign Group is expected to post earnings of $6.39 per share on $4.99 in revenues. This represents a 16.18% change in EPS on a 17.19% change in revenues. For the next fiscal year, the company is expected to earn $6.99 per share on $5.51 in revenues. This represents a year-over-year change of 9.44% and 10.41%, respectively.Valuation MetricsThough Ensign Group has recently hit a 52-week high, what is next for Ensign Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Ensign Group has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 27X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27X. On a trailing cash flow basis, the stock currently trades at 26.2X versus its peer group's average of 13.1X. Additionally, the stock has a PEG ratio of 1.8. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Ensign Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ensign Group meets the list of requirements. Thus, it seems as though Ensign Group shares could have a bit more room to run in the near term.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks