Why Ensign Group (ENSG) is a top value stock in the long term

Making full use of the opportunities offered by the stock market and investing with confidence are common goals for both new and old investors.

Even if you have an investing style you rely on, finding great stocks is made easier with Zacks Style Scores, complementary indicators that evaluate stocks based on value, growth and/or momentum characteristics.

Why investors should pay attention to this value stock

Unlike growth or momentum investors, value investors are concerned with finding good stocks at good prices and figuring out which companies are trading below their true value before the broader market notices. The Value Style Score uses metrics such as P/E, PEG, price-to-sales and price-to-cash flow to select the most attractive and cheapest stocks.

Ensign Group (ENSG)

Founded in 1999 and headquartered in San Juan Capistrano, California, The Ensign Group Inc. provides post-acute care, urgent care, and mobile ancillary services throughout the United States.

ENSG has a Value Style Score of B and a VGM Score of B and carries a Zacks Rating of Rank #3 (Hold). Ensign Group shares trade at an earnings multiple of 23.5X, as well as a PEG ratio of 1.6, a price-to-cash-flow ratio of 22X and a price-to-sales ratio of 1.9X.

Value investors don’t just look at a company’s valuation metrics; positive earnings also play a crucial role. Two analysts have revised their earnings estimates for fiscal year 2024 upward in the past 60 days. The Zacks Consensus Estimate has increased by $0.02 to $5.40 per share. ENSG has an average earnings surprise of 1.3%.

Given strong valuation and earnings metrics, a good Zacks Rank, and top-notch Value and VGM Style Scores, investors should seriously consider adding ENSG to their portfolio.

Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report

The Ensign Group, Inc. (ENSG): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research