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

Core Viewpoint - Ensign Group (ENSG) has shown strong stock performance, with a 7.6% increase over the past month and a 33.8% rise since the beginning of the year, outperforming both the Zacks Medical sector and the Zacks Medical - Nursing Homes industry [1][3] Financial Performance - Ensign Group has consistently exceeded earnings expectations, reporting an EPS of $1.32 against a consensus estimate of $1.29 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $5.44 per share on revenues of $4.22 billion, reflecting a 14.05% increase in EPS and a 13.06% increase in revenues [3] - The forecast for the next fiscal year indicates expected earnings of $5.99 per share on $4.62 billion in revenues, representing year-over-year changes of 10.11% and 9.51%, respectively [3] Valuation Metrics - Ensign Group's current valuation metrics show a trading multiple of 27.6X current fiscal year EPS estimates, aligning with the peer industry average [7] - On a trailing cash flow basis, the stock trades at 26.1X compared to a peer group average of 22.1X, and it has a PEG ratio of 1.84, indicating it is not among the top value stocks [7] Zacks Rank and Style Scores - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Ensign Group has a Value Score of B, with Growth and Momentum Scores of C and D, respectively, resulting in a combined VGM Score of B [6][8] - The recommendation suggests that stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are favorable, indicating potential for further gains for Ensign Group [9]