Have you been paying attention to shares of Ensign Group (ENSG)? Shares have been on the move with the stock up 15.8% over the past month. The stock hit a new 52-week high of $164.21 in the previous session. Ensign Group has gained 23.1% since the start of the year compared to the -6.6% move for the Zacks Medical sector and the 13.7% return for the Zacks Medical - Nursing Homes industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 24, 2025, Ensign Group reported EPS of $1.59 versus consensus estimate of $1.54 while it beat the consensus revenue estimate by 1.77%.
For the current fiscal year, Ensign Group is expected to post earnings of $6.39 per share on $4.99 in revenues. This represents a 16.18% change in EPS on a 17.19% change in revenues. For the next fiscal year, the company is expected to earn $6.99 per share on $5.51 in revenues. This represents a year-over-year change of 9.44% and 10.41%, respectively.
Valuation Metrics
Though Ensign Group has recently hit a 52-week high, what is next for Ensign Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ensign Group has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 25.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 25.6X. On a trailing cash flow basis, the stock currently trades at 24.8X versus its peer group's average of 12.5X. Additionally, the stock has a PEG ratio of 1.71. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Ensign Group currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ensign Group meets the list of requirements. Thus, it seems as though Ensign Group shares could still be poised for more gains ahead.
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The Ensign Group, Inc. (ENSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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