Q3 Rundown: The Ensign Group (NASDAQ:ENSG) Vs Other Healthcare Providers & Services Stocks

Looking back on healthcare providers & services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including The Ensign Group (NASDAQ:ENSG) and its peers.

The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality.

The 40 healthcare providers & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

The Ensign Group (NASDAQ:ENSG)

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

The Ensign Group reported revenues of $1.30 billion, up 19.8% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ full-year EPS and revenue guidance slightly topping analysts’ expectations.

“We are pleased to report another record quarter. The primary driver of these results is the extraordinary healthcare outcomes achieved by our dedicated and talented clinical teams. Simply put, our consistent financial results would not be possible without a relentless patient-focused culture that strives to deliver the highest quality clinical outcomes,” said Barry Port, Ensign’s Chief Executive Officer.

Interestingly, the stock is up 1.5% since reporting and currently trades at $182.80.

Is now the time to buy The Ensign Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Guardant Health (NASDAQ:GH)

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ:GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $265.2 million, up 38.5% year on year, outperforming analysts’ expectations by 12.6%. The business had an incredible quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Guardant Health pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 41.5% since reporting. It currently trades at $102.27.

Is now the time to buy Guardant Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Brookdale (NYSE:BKD)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.

Interestingly, the stock is up 10.9% since the results and currently trades at $10.10.

Read our full analysis of Brookdale’s results here.

McKesson (NYSE:MCK)

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

McKesson reported revenues of $103.2 billion, up 10.1% year on year. This number came in 0.9% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

The stock is down 2.8% since reporting and currently trades at $820.77.

Read our full, actionable report on McKesson here, it’s free for active Edge members.

Humana (NYSE:HUM)

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Humana reported revenues of $32.65 billion, up 11.4% year on year. This result surpassed analysts’ expectations by 2.1%. More broadly, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a slight miss of analysts’ customer base estimates.

The company added 150,000 customers to reach a total of 14.99 million. The stock is down 3.3% since reporting and currently trades at $272.51.

Read our full, actionable report on Humana here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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