This healthcare company just acquired 18 skilled nursing facilities in Texas. The company beat earnings estimates by a penny last quarter, and its shares recently crossed over its 50-day moving average—a bullish indicator.
Ensign Group (ENSG)
From 2 for 1 Stock Split Newsletter
Ensign Group (ENSG) has improved its ranking score since first appearing on the split list last December. Its price has fallen a bit and the health care sector overall has also declined. These movements have improved ENSG’s ranking score in absolute terms and also relative to the other candidates.
Ensign Group is in the health care sector, a group already well represented in the 2 for 1 Index, but not to the point I’m concerned about an over-weighting. ENSG, a holding company, provides skilled nursing, rehabilitation services, home health care, hospice care, assisted living, and urgent care services through its subsidiaries.
Many of Ensign’s services are rather labor intensive and require a skilled and disciplined management to be profitable. ESGN’s returns and balance sheet numbers are significantly superior to the company’s competitors in these areas. As the baby boomers age, this business can only grow.
Neil Macneale, 2 for 1 Stock Split Newsletter, www.2-for- 1.com, 408-210-6881, April 2016