3 Reasons Why Ensign Group (ENSG) Is a Great Growth Stock

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]