Yahoo Finance Ensign Group's (ENSG) Buyout Consolidates Colorado Presence
The Ensign Group ENSG has acquired two skilled nursing facilities, Hampden Hills Post Acute and Mapleton Post Acute, with 218 beds and 84 beds, respectively. The acquisitions were effective from Mar 1, 2023, and are subject to long-term, triple net leases.
These buyouts reflect ENSG’s efforts to bring better health outcomes in its operational markets and consolidate its presence in Colorado.
Such growth endeavors should provide an impetus to revenues of the ENSG’s Skilled Services segment, through which it provides skilled nursing and senior living services, physical, occupational and speech therapies as well as other rehabilitative and healthcare services. This segment generated $2.9 billion in revenue for 2022, an increase of 15.2% from the prior year.
The Ensign Group invests in and provides skilled nursing and senior living services, amongst many other services. Post this acquisition, the company’s portfolio would have 290 healthcare operations, 26 of which are senior living operations in 13 states.
Ensign Group follows an aggressive inorganic growth strategy and multiple buyouts which were pursued almost every month of this year bears testament to this fact. Apart from expanding its healthcare portfolio and strengthening its U.S. foothold, each facility buyout upgrades ENSG’s capabilities and enables it to extend its high-quality healthcare services.
With no mood to slow its expansion growth, management keeps an eye on detecting opportunistic real-estate buyouts. It also aims to lease robust and struggling skilled nursing, assisted living and other healthcare-linked businesses across the United States. Ensign subsidiaries own 108 real estate assets and have subleased three healthcare operations to a third party.
Price Performance
Shares of Ensign have lost 4% year to date compared with the industry’s decline of 2.3%.
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Zacks Rank & Key Picks
The Ensign Group currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical sector are UnitedHealth Group UNH, The Pennant Group PNTG and Quest Diagnostics DGX. All these companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of UnitedHealth Group outpaced estimates in all the last four quarters, the average surprise being 4.4%. The Zacks Consensus Estimate for UNH’s 2023 earnings suggests an improvement of 12.3%, while the same for revenues indicates growth of 10.7% from the corresponding year-ago reported figures. The consensus mark for UNH’s 2023 earnings has moved 0.2% north in the past 60 days.
The Pennant Group’s bottom line outpaced estimates in one of the trailing four quarters, met the same in two and missed in one. The average of earnings surprises is 3.8%. The Zacks Consensus Estimate for PNTG’s 2023 earnings indicates a 22.8% rise, while the same for revenues suggests 8.4% growth from the respective prior-year reported figures.
The bottom line of Quest Diagnostics outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7%. The consensus mark for DGX’s 2023 earnings has moved 1.6% north in the past 30 days.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
The Pennant Group, Inc. (PNTG) : Free Stock Analysis Report
