Operations and Expansion - As of September 30, 2025, the company operates 361 skilled nursing and senior living facilities, with a total of 37,076 operational skilled nursing beds and 3,401 senior living units[166]. - During the nine months ended September 30, 2025, the company expanded operations by adding 28 stand-alone skilled nursing operations and five stand-alone senior living operations, contributing 3,384 operational skilled nursing beds and 313 operational senior living units[171]. - Subsequent to September 30, 2025, the company added eight stand-alone skilled nursing operations, increasing operational skilled nursing beds by 428[172]. - Standard Bearer Healthcare REIT, Inc. added $228.9 million of real estate associated with 15 stand-alone skilled nursing operations and one stand-alone senior living operation during the nine months ended September 30, 2025[175]. - The company expanded into Alabama, Alaska, and Oregon in the first quarter of 2025, enhancing its national presence in attractive markets[173]. - The company’s real estate portfolio includes 148 owned properties, with 112 facilities operated and managed by the company and 36 leased to third-party operators[166]. - The company reported a total of 37,076 operational beds at the end of Q3 2025, with available patient days increasing to 3,367,685 from 2,974,651 in Q3 2024[191]. - The company continues to acquire underperforming skilled nursing operations and integrate them with its operational principles[326]. - The company aims to reach full clinical and financial potential for each operation through diligent efforts with existing and recently acquired operations[326]. Financial Performance - Total service revenue for Q3 2025 reached $1,289.8 million, up from $1,076.1 million in Q3 2024, representing a year-over-year growth of approximately 19.8%[194]. - For the nine months ended September 30, 2025, total service revenue was $3,678.2 million, compared to $3,111.2 million for the same period in 2024, reflecting a growth of approximately 18.2%[196]. - Total revenue for the three months ended September 30, 2025, increased by $214.6 million, or 19.8%, compared to the same period in 2024[324]. - Diluted GAAP earnings per share grew by 6.0%, from $1.34 to $1.42, for the three months ended September 30, 2025, compared to the same period in 2024[324]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $435,086,000, up from $356,766,000 in the same period of 2024[329]. - Adjusted EBT for the three months ended September 30, 2025, was $128,721,000, compared to $108,352,000 in Q3 2024, reflecting a 18.5% increase[347]. - Net income for the three months ended September 30, 2025, was $83,911,000, an increase of 6.0% from $78,567,000 in 2024[349]. - The company reported a decrease in total expenses to 92.6% of total revenue for Q3 2025, compared to 91.7% in Q3 2024[328]. Revenue Sources - Medicaid revenue for Q3 2025 was $501.7 million, an increase from $416.2 million in Q3 2024, while Medicare revenue rose to $303.3 million from $263.6 million[194]. - Managed care revenue for Q3 2025 was $238.0 million, up from $202.5 million in Q3 2024, indicating a growth of approximately 17.5%[194]. - The skilled services segment accounted for 71.4% of total service revenue for the nine months ended September 30, 2025, slightly down from 72.9% in the same period of 2024[196]. - Skilled nursing average daily revenue rates for Medicare increased to $792.47 in 2025 from $750.49 in 2024, representing a growth of 5.3%[362]. - Total skilled nursing revenue rose to $420.16 million in 2025, up from $395.24 million in 2024, reflecting an increase of 6.3%[362]. - The average daily revenue for Medicaid increased to $304.16 in 2025 from $294.55 in 2024, showing a rise of 3.0%[362]. - Overall, the company demonstrated a positive trend in skilled nursing revenue across various payor sources, indicating strong operational performance[362]. Regulatory and Compliance - The company settled wage-related violations for $12,000 pending court approval during the three months ended September 30, 2025[179]. - The OBBB establishes a limit of $1.0 million for home equity that can be exempted from calculating an individual's eligibility for Medicaid in seeking long-term care starting January 1, 2028[208]. - States must conduct Medicaid eligibility redeterminations every six months starting in the first quarter of 2027, rather than annually[206]. - The Medicare Access and CHIP Reauthorization Act (MACRA) introduces two separate conversion factors for Medicare-participating providers, impacting reimbursement for therapeutic services[218]. - The Skilled Nursing Facility Quality Reporting Program (SNF QRP) imposes a 2.0% payment reduction for facilities that fail to submit required quality data[228]. - CMS has increased penalties for Special Focus Facilities (SFFs) that fail to improve performance, with heightened scrutiny and oversight lasting three years post-graduation from the program[296]. - CMS is intensifying survey and enforcement activities, focusing on facilities with substandard care or repeat violations of standards[298]. Market Trends and Future Outlook - The company continues to focus on expanding its skilled nursing and rehabilitation services, which are critical for maintaining revenue growth and profitability[192]. - For fiscal year 2026, CMS has finalized a 3.2% increase to SNF PPS payment rates, based on a final SNF market basket of 3.3% and adjustments[213]. - The company anticipates lower overall occupancy during years of growth due to historically lower rates at Recently Acquired Facilities[361]. - The company has made progress on initiatives related to increasing occupancy and the acuity of patients served in its facilities[326].

Core Insights - The Ensign Group, Inc. has acquired The Health Center of Eastview, a 90-bed skilled nursing facility in Birmingham, Alabama, effective November 1, 2025, which is under a long-term, triple net lease with a third-party landlord [1] - In a separate transaction on the same day, Ensign acquired the real estate and operations of seven skilled nursing facilities in Utah, expanding its portfolio significantly [3] - These acquisitions increase Ensign's total healthcare operations to 369 across 17 states, including 47 senior living operations, with 155 real estate assets owned by its subsidiaries [4] Company Expansion - The CEO of Ensign expressed enthusiasm about expanding in the Alabama market and building on recent growth in the Southeast [2] - The President of Southstone Healthcare LLC, an Ensign subsidiary, highlighted the commitment to providing high-quality care at the newly acquired facility [3] Strategic Focus - Ensign is actively seeking further acquisition opportunities in real estate and healthcare-related businesses, targeting both well-performing and struggling skilled nursing and senior living facilities across the United States [4]

Core Insights - The Ensign Group, Inc. has acquired the real estate and operations of seven skilled nursing facilities in Utah, enhancing its portfolio and market presence in the state [1][2] - The acquisition includes properties that are newer constructions, which align well with Ensign's existing operations and introduce new markets [2] - In addition to the Utah facilities, Ensign also acquired the operations of a 90-bed skilled nursing facility in Birmingham, Alabama, which will be operated under a long-term triple net lease [3] Company Expansion - Following these acquisitions, Ensign's portfolio now consists of 369 healthcare operations, including 47 senior living operations across 17 states [4] - Ensign subsidiaries, including Standard Bearer, own a total of 155 real estate assets [4] - The company is actively pursuing further acquisition opportunities in skilled nursing, senior living, and other healthcare-related businesses throughout the United States [4] Operational Strategy - Ensign's CEO expressed confidence in the integration of the new facilities, emphasizing the potential for collaboration with existing staff and caregivers to enhance service quality [2][3] - The company aims to leverage its resources and expertise to provide high-quality services to the communities served by the newly acquired facilities [3]

Industry Overview - The global population is aging rapidly, with the number of individuals aged 60 and above surpassing those under five for the first time in 2020, leading to significant implications for healthcare systems and investors [2] - By 2050, nearly 22% of the global population will be over 60, with a significant concentration in low- and middle-income countries [2] - The geriatric care services industry is currently valued at approximately $1.21 trillion and is projected to grow to around $2.12 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 6.4% [3] Market Dynamics - Evolving healthcare utilization patterns due to aging are creating growth opportunities in senior living communities, skilled nursing facilities, assisted living, and post-acute care providers [4] - The Centers for Medicare & Medicaid Services (CMS) has advanced the Program of All-Inclusive Care for the Elderly (PACE), aimed at providing comprehensive care for seniors [4] Key Players - Major healthcare companies like Boston Scientific, AbbVie, Amgen, and Edwards Lifesciences are actively expanding their presence in the senior and aging demographics [5] - The Ensign Group is expanding its skilled nursing and rehabilitative services, supported by a decentralized management strategy [7] - Healthcare real estate investment trusts (REITs) such as Omega Healthcare Investors and CareTrust REIT are focusing on skilled nursing and senior housing properties [7] Investment Perspective - The senior-care services sector is resilient during economic downturns, providing stable cash flows and making it attractive for long-term investors seeking defensive growth [8] Company Highlights - **Boston Scientific**: Focuses on medical devices for the elderly, including the WATCHMAN device for stroke risk reduction and the SYNERGY bioabsorbable stent system [9][10] - **AbbVie**: Expanding its focus on the aging demographic through strategic partnerships, including the acquisition of Aliada Therapeutics for Alzheimer's treatment [11][12][14] - **Amgen**: Targeting the aging population with innovations in biopharma, including obesity treatments and bone health therapies [15][16] - **Edwards Lifesciences**: Advancing care for aortic stenosis in elderly patients, with significant sales growth in structural-heart solutions [17][18][19]

Core Insights - The Ensign Group, Inc. plans to release its third quarter 2025 financial results on November 3, 2025 [1] - A live webcast for discussing the third quarter performance will take place on November 4, 2025, at 10:00 a.m. Pacific Time [2] - The Ensign Group operates 361 healthcare facilities across multiple states in the U.S. [4] Company Overview - The Ensign Group, Inc. provides skilled nursing and senior living services, along with various rehabilitative and healthcare services [1][4] - The company has independent operating subsidiaries that offer a broad spectrum of services including physical, occupational, and speech therapies [4] - Ensign operates in states such as California, Texas, and Colorado, among others [4]

Core Viewpoint - Ensign Group (ENSG) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock price movements [2][4]. - Rising earnings estimates are correlated with near-term stock price increases, as institutional investors adjust their valuations based on these estimates [4][5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Ensign Group to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns [10]. Earnings Estimate Revisions for Ensign Group - For the fiscal year ending December 2025, Ensign Group is expected to earn $6.39 per share, with a 1.3% increase in the Zacks Consensus Estimate over the past three months [8].

Core Insights - The Ensign Group Inc. (ENSG) is a healthcare services company focused on post-acute care, urgent care centers, and mobile ancillary businesses in the U.S., with a year-to-date stock increase of 26.5%, outperforming the industry average of 17% [1][8]. Company Overview - Headquartered in San Juan Capistrano, CA, ENSG has a market capitalization of $9.6 billion and operates through two segments: Skilled Services and Standard Bearer, with a portfolio of 361 healthcare operations across 17 states, including 47 senior living facilities [2][4]. - The company holds a Zacks Rank 2 (Buy), indicating solid growth prospects [2]. Financial Estimates - The Zacks Consensus Estimate for ENSG's 2025 earnings is $6.39 per share, reflecting a 16.2% year-over-year increase, with revenue estimates at $5 billion, indicating a 17.2% rise [3][4]. - ENSG has consistently beaten earnings estimates over the past four quarters, with an average surprise of 1.9% [3]. Growth Drivers - Revenue growth has been driven by service revenues, strategic acquisitions, and rental income, with a reported 18.5% year-over-year increase in operating revenues for Q2 2025 [4][6]. - The Skilled Services unit's revenues grew 18.4% year-over-year to $1.2 billion, while the Standard Bearer segment saw a 34.7% increase to $31.5 million in the same quarter [6][8]. - The company has raised its 2025 revenue guidance to $4.99-$5.02 billion, up from the previous range of $4.89 billion to $4.94 billion [4][8]. Financial Health - ENSG's total debt is only 6.6% of its capital, significantly lower than the industry average of 87.8%, indicating strong financial health [7]. - The company has engaged in share buybacks worth $20 million and paid dividends of $7.2 million in the first half of 2025, reflecting its commitment to enhancing shareholder value [7]. Expense Trends - Total expenses have increased significantly, with a year-over-year rise of 27.3% in 2023, 12.3% in 2024, and 16.9% in the first half of 2025, with expectations of a 17.1% increase in 2025 [8][9].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Ensign Group (ENSG) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Ensign Group has a historical EPS growth rate of 14.7%, with projected EPS growth of 16.2% this year, surpassing the industry average of 12% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to fund new projects without external financing [6] - Ensign Group's year-over-year cash flow growth is 15.8%, exceeding 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% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - Ensign Group has seen upward revisions in current-year earnings estimates, with a 0.5% increase in the Zacks Consensus Estimate over the past month [8] Group 5: Overall Positioning - Ensign Group has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

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].