Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Z ...

Group 1: Momentum Investing Overview - Momentum investing is based on following a stock's recent price trends, aiming to buy high and sell higher [1] - The Zacks Momentum Style Score helps investors identify effective metrics for momentum, addressing the challenges in defining momentum [2] Group 2: Ensign Group (ENSG) Performance - Ensign Group currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, ENSG shares increased by 3.45%, outperforming the Zacks Medical - Nursing Homes industry, which rose by 2.61% [6] - In the last quarter, ENSG shares rose by 13.27%, and over the past year, they gained 16.21%, compared to the S&P 500's increases of 7.87% and 15.7% respectively [7] Group 3: Trading Volume and Earnings Outlook - ENSG's average 20-day trading volume is 515,839 shares, which is a useful indicator of market interest [8] - In the past two months, three earnings estimates for ENSG have been revised upwards, increasing the consensus estimate from $6.29 to $6.39 [10] - The positive trend in earnings estimate revisions supports the stock's strong momentum outlook [9][10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, ENSG is positioned as a solid momentum pick for investors [12]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to inherent volatility and risks [1]. Group 1: Company Overview - Ensign Group (ENSG) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The company operates in the nursing and rehabilitative care services sector, which is characterized by strong growth potential [3]. Group 2: Earnings Growth - Historical EPS growth for Ensign Group stands at 14.7%, with projected EPS growth of 16.2% for the current year, surpassing the industry average of 12% [5]. - Earnings growth is a critical factor for investors, as double-digit growth is often seen as indicative of strong future prospects [4]. Group 3: Cash Flow Growth - Ensign Group's year-over-year cash flow growth is reported at 15.8%, significantly higher than the industry average of 9.4% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 17.4%, compared to the industry average of 5.8%, indicating robust financial health [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Ensign Group, with the Zacks Consensus Estimate for the current year increasing by 1.3% over the past month [8]. - Positive earnings estimate revisions are correlated with near-term stock price movements, making this a favorable indicator for investors [8]. Group 5: Investment Positioning - Ensign Group has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the market [9]. - The combination of strong growth metrics and positive earnings revisions suggests that growth investors may find Ensign Group an attractive investment opportunity [10].

Core Viewpoint - Ensign Group (ENSG) has shown significant stock performance, with a 15.8% increase over the past month and a 23.1% rise since the beginning of the year, outperforming the Zacks Medical sector and the Nursing Homes industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.59 against a consensus estimate of $1.54 in its last earnings report [2]. - For the current fiscal year, Ensign Group is projected to achieve earnings of $6.39 per share on revenues of $4.99 billion, reflecting a 16.18% increase in EPS and a 17.19% increase in revenues [3]. - The next fiscal year forecasts earnings of $6.99 per share on revenues of $5.51 billion, indicating a year-over-year growth of 9.44% in EPS and 10.41% in revenues [3]. Valuation Metrics - Ensign Group's current valuation metrics show a Price-to-Earnings (P/E) ratio of 25.6X for the current fiscal year, aligning with the peer industry average [7]. - The trailing cash flow basis indicates a valuation of 24.8X, compared to the peer group's average of 12.5X, and a PEG ratio of 1.71, suggesting it is not among the top value stocks [7]. Zacks Rank and Style Scores - Ensign Group holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, which is favorable for potential investors [8]. - The company has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of A, indicating strong growth potential [6][8].

Dave Jorgensen, President of Gateway Healthcare, Inc., Ensign's Iowa-based subsidiary, added "This is a fantastic operation and we are excited to work together with our healthcare partners to provide top-notch care for our residents and their families." In a separate transaction on the same day, Ensign announced it acquired the operations of five skilled nursing operations and three assisted living in California. These acquisitions were effective on August 1, 2025, and are subject to new triple net lease ar ...

These acquisitions are effective as of August 1, 2025, and bring Ensign's growing portfolio to 361 healthcare operations, which includes 47 senior living operations, across 17 states. Ensign subsidiaries, including Standard Bearer, own 148 real estate assets. Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States. SAN JUAN CAPI ...

SAN JUAN CAPISTRANO, Calif., Aug. 04, 2025 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it acquired the operations of the following skilled and assisted living facilities in California: These acquisitions were effective on August 1, 2025, and ...

Core Viewpoint - The Ensign Group, Inc. (ENSG) experienced an 8.9% increase in shares on July 25, driven by strong revenue growth in its Skilled Services segment, improved occupancy rates, and solid rental revenue growth, despite elevated expenses impacting overall profitability [1] Financial Performance - ENSG reported second-quarter 2025 adjusted EPS of $1.59, exceeding the Zacks Consensus Estimate by 3.3% and reflecting a 20.5% year-over-year improvement [2][8] - Operating revenues rose 18.5% year over year to $1.2 billion, surpassing the consensus mark by 1.8% [2][8] - Adjusted net income for the quarter was $93.3 million, a 22.1% increase year over year [3] Segment Performance - Skilled Services segment revenues reached $1.17 billion, growing 18.4% year over year, slightly above estimates [4] - Rental revenues increased by 34.7% year over year to $31.5 million, supported by buyouts [5] Expense and Cash Flow Analysis - Total expenses rose 18.3% year over year to $1.12 billion, exceeding estimates [3] - Cash and cash equivalents at the end of Q2 were $364 million, down 21.7% from the end of 2024 [6] - Net cash from operations for the first half of 2025 was $228 million, more than doubling year over year [7] Capital Deployment - The company repurchased shares worth $20 million and paid dividends totaling $7.2 million in the first half of 2025 [9] 2025 Outlook - Revenue guidance for 2025 has been raised to between $4.99 billion and $5.02 billion, indicating a 17.5% improvement from 2024 [10] - Adjusted EPS is now projected to be between $6.34 and $6.46 for 2025, reflecting a 16.4% growth from the previous year [10]

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Financial Data and Key Metrics Changes - GAAP diluted earnings per share increased by 18% to $1.44, while adjusted diluted earnings per share rose by 20.5% to $1.59 [29][30] - Consolidated GAAP revenue and adjusted revenue both reached $1.2 billion, marking an 18.5% increase [29][30] - GAAP net income was $84.4 million, up 18.9%, and adjusted net income increased by 22.1% to $93.3 million [29][30] - Cash and cash equivalents stood at $364 million, with cash flow from operations at $228 million [30] Business Line Data and Key Metrics Changes - Same store and transitioning occupancy increased by 24.6% to 82.184% year-over-year [8] - Skilled census for same store and transitioning operations rose by 7.4% and 13.5% respectively [8] - The company raised its annual 2025 earnings guidance to between $6.34 and $6.46 per diluted share, reflecting a 16.4% increase over 2024 results [10][31] Market Data and Key Metrics Changes - The skilled nursing population was excluded from provider tax reductions in a recent reconciliation bill, indicating positive regulatory support for the industry [9] - The company added eight new operations during the quarter, including three real estate assets, expanding its presence in key states [12][13] Company Strategy and Development Direction - The company is focused on organic growth through improved occupancy and skilled mix, alongside strategic acquisitions [11][18] - A decentralized transition model allows for scalable growth without typical corporate bottlenecks, enhancing operational efficiency [14][18] - The company aims to maintain disciplined growth by ensuring acquisitions are priced appropriately to support operational success [18][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare industry's future, citing strong occupancy trends and growth opportunities [33] - The company is confident in its ability to advocate for necessary funding for skilled nursing, emphasizing the importance of state-level relationships [50][52] - Management noted that the current environment allows for productive discussions regarding funding and reimbursement rates [50][76] Other Important Information - The company has a strong balance sheet with a lease-adjusted net debt to EBITDA ratio of 1.97x, indicating low leverage even during growth phases [30] - Standard Bear, the company's real estate investment trust, generated $31.5 million in rental revenue for the quarter, with a significant portion from Ensign-affiliated operations [19] Q&A Session Summary Question: Is there a strategy shift towards larger multistate portfolio deals? - Management clarified that there is no strategy shift but highlighted successful integration of larger portfolio deals, indicating a strong pipeline for such transactions [35][37][40] Question: How are valuations trending for acquisitions? - Management noted that valuations are moderately increasing post-COVID, but they remain disciplined in their approach to pricing based on local market fundamentals [53][56] Question: What is the impact of the California Workforce and Quality Incentive Program? - Management expects the program to continue through 2026 and is actively working with state officials to ensure adequate funding [62] Question: Are there any impacts from the recent legislation on market activity? - Management indicated that while there is ongoing regulatory change, the deal pipeline remains steady, allowing for selective opportunities [75][76]