ENSG

Ensign Group stock has delivered a strong 115.2% return over the past 5 years, while a Discounted Cash Flow (DCF) intrinsic value estimate currently points to the shares trading at about a 13% discount. This contrasts with a low overall value score that leans more expensive on broader checks. The 115.2% return over 5 years suggests Ensign Group has already rewarded long term holders, so any case for value today needs to clear a higher bar. On the supportive side, the enlarged US$800m credit facility that now runs to 2031 can back Ensign Group's acquisition led growth plans. However, active securities law investigations and fraud related allegations may weigh on how investors price in future cash flows. The company scores 2 out of 6 on a broad valuation screen at Simply Wall St, which points to Ensign Group not being a clear bargain when looking across multiple methods. The issue now is whether the current share price already reflects Ensign Group's intrinsic value, or if that DCF discount still offers a reasonable margin of safety given the ongoing legal and reputational risks. Spot 74 resilient stocks with low risk scores that may offer steadier stories than Ensign Group when legal and reputational questions start to dominate the share price. The Discounted Cash Flow (DCF) model for Ensign Group uses projected free cash flows and a terminal value to estimate what the stock might be worth today. On this model, Ensign Group’s latest twelve month free cash flow is about $416 million, with the projections assuming growing cash flows rather than a recovery or decline phase. That stream, discounted back to today, gives an estimated intrinsic value of about $199 per share. At the current share price of around $156, the DCF output implies Ensign Group trades at roughly a 13% discount, which screens as undervalued on this model. The securities law investigations and fraud related allegations highlighted in the Hunterbrook and Muddy Waters reports help explain why the market price may still sit below this cash flow based estimate. On the DCF numbers alone, Ensign Group stock currently appears undervalued relative to its projected cash flows on this model. Our Discounted Cash Flow (DCF) analysis suggests Ensign Group is undervalued by 13.0%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ensign Group. P/E is a useful lens for Ensign Group because earnings are a key focus for many investors in healthcare operators. Ensign Group currently trades on a P/E of about 26.4x, which is slightly above the wider healthcare industry average of around 24.8x and well above the peer group average of roughly 15.2x. On a more tailored view, the fair P/E ratio for Ensign Group is estimated at about 26.3x. That is almost identical to where the stock trades today, which suggests the market is broadly in line with what this framework implies once factors like business profile, size and risk are taken into account. The ongoing legal and regulatory investigations help explain why investors may be closely weighing that premium to peers even if the model sees the P/E as roughly in line with fair. Overall, Ensign Group stock appears roughly fairly valued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Ensign Group valuation puzzle leaves off by spelling out which paths for growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price on the Community page. Each Narrative sets out Ensign Group's implied fair value as a thesis about how the business might develop, so you can watch how that view holds up over time. Share a narrative on Ensign Group stock to present your numbers-based view on whether the recent fraud and securities investigation headlines affect the long-term story, then track how that thesis holds up as new results and disclosures arrive. Do you think there's more to the story for Ensign Group? Head over to our Community to see what others are saying! For Ensign Group, the Discounted Cash Flow (DCF) analysis still points to some intrinsic value upside, while the current P/E suggests the market already prices the stock at roughly about right levels on earnings. That split reflects a gap between what the cash flow profile implies and what investors are willing to pay given sector peers and sentiment. Broader valuation checks are weak despite the DCF signal, so the key question is whether the current discount compensates for the legal and reputational risks or whether those risks are exactly what the market is pricing in. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ENSG. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 39 healthcare providers & services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.6% above. While some healthcare providers & services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results. 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 $1.44 billion, up 10.7% year on year. This print fell short of analysts’ expectations by 7.9%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates but a significant miss of analysts’ EPS estimates. "This quarter's results are another reflection of that enduring connection between the commitment of our local leaders to delivering high-quality care in their communities and our financial performance. We believe exceptional outcomes ultimately create their own form of accountability, because residents, families, referral partners, regulators, and payers all independently validate whether an operation is truly delivering value,” said Barry Port, Chief Executive Officer of The Ensign Group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $172.27. Is now the time to buy The Ensign Group? Access our full analysis of the earnings results here, it’s free. With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States. AMN Healthcare Services reported revenues of $673.2 million, up 2.3% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. AMN Healthcare Services delivered the highest guidance raise of the whole group. The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $34.41. Is now the time to buy AMN Healthcare Services? Access our full analysis of the earnings results here, it’s free. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $740.3 million, up 12.7% year on year, falling short of analysts’ expectations by 12.6%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly. AdaptHealth delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 48.3% since the results and currently trades at $5.60. Read our full analysis of AdaptHealth’s results here. Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics (NYSE:DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States. Quest reported revenues of $3.04 billion, up 10.2% year on year. This number beat analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates. The stock is up 15.7% since reporting and currently trades at $242.71. Read our full, actionable report on Quest here, it’s free. With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE:DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease. DaVita reported revenues of $3.55 billion, up 5.2% year on year. This result topped analysts’ expectations by 1.7%. Aside from that, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates. The stock is down 22.9% since reporting and currently trades at $175.88. Read our full, actionable report on DaVita here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Ensign Group (ENSG). Shares have lost about 2.3% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Ensign Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. ENSG Q2 Earnings Beat Estimates on Growing Occupancy, '26 View Raised Ensign Group reported a second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7%. The bottom line improved 20.8% year over year. Operating revenues advanced 17.3% year over year to $1.4 billion. The top line beat the consensus mark by 0.6%. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses. Ensign Group’s adjusted net income of $114.3 million rose 22.5% year over year. Same-facilities occupancy improved 220 basis points (bps) to 84.1%, while transitioning-facilities occupancy increased 190 bps year over year to 84.7%. Total expenses escalated 17.3% year over year to $1.3 billion due to higher cost of services, rent and G&A costs and came in higher than our estimate by 0.6%. Skilled Services: The segment’s revenues totaled $1.4 billion, which grew 17.6% year over year but missed our estimate by 1.2%. The metric benefited from higher occupancy rates and improved patient days. Segment income of $179.6 million advanced 19.7% year over year. Skilled nursing facilities and campus operations were 348 and 32, respectively. Standard Bearer: Rental revenues climbed 40.2% year over year to $44.1 million in the quarter. The metric benefited from real estate purchases and increased annual rent. Segment income of $12.1 million advanced 32.3% year over year. Funds from operations amounted to $24.7 million, which increased 34.6% year over year. Ensign Group exited the second quarter with cash and cash equivalents of $262.3 million, which fell from the 2025-end figure of $503.9 million. It had $591.6 million of available capacity under its line of credit. Total assets of $5.7 billion increased from $5.5 billion at the end of 2025. Long-term debt — less current maturities — totaled $135.6 million, down from $137.5 million as of Dec. 31, 2025. Current maturities of long-term debt amounted to $4.2 million. Total equity of $2.4 billion advanced from the 2025-end figure of $2.2 billion. ENSG generated net cash from operations of $272.1 million in the first half of 2026, which grew from the prior-year figure of $228 million. ENSG bought back shares worth $40 million in the second quarter of 2026. As of June 30, 2026, $60 million remained available under the company’s stock repurchase program. The company also paid a quarterly cash dividend of 6.5 cents per share of Ensign common stock. ENSG has raised its full-year 2026 outlook. Revenues are now expected to range between $5.87 billion and $5.92 billion compared with the prior guidance of $5.81-$5.86 billion. Adjusted EPS is projected to be in the band of $7.75-$7.85 per share, up from the earlier estimate of $7.48-$7.62. The weighted average common shares outstanding is currently estimated to be around 59.5 million and the tax rate is anticipated to be 25%. In the past month, investors have witnessed a upward trend in estimates review. At this time, Ensign Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. GAAP Diluted Earnings Per Share (EPS): $1.68, an increase of 16.7%. Adjusted Diluted EPS: $1.92, an increase of 20.8%. Consolidated GAAP Revenue / Adjusted Revenue: $1.4 billion, an increase of 17.3%. GAAP Net Income: $99.7 million, an increase of 18.2%. Adjusted Net Income: $114.3 million, an increase of 22.5%. Cash and Cash Equivalents: $262.3 million as of June 30, 2026. Cash Flows from Operations: $272.1 million for the first half of 2026. Same-Store and Transitioning Occupancy: 84.1% and 84.7%, respectively, for Q2. Same-Store Revenue Days: Increased by 10.7% over the prior year quarter. Same-Store Patient Days: Increased by 6.7% over the prior year quarter. Managed Care Revenue (Same-Store): Increased by 6.1% over the prior year quarter. Managed Care Revenue (Transitioning): Increased by 16.2% over the prior year quarter. Skilled Mix Days (Same-Store): Up 6.2% from Q2 2025. Skilled Mix Days (Transitioning): Up 9.4% from Q2 2025. Standard Bearer Rental Revenue: $44.1 million for the quarter. Standard Bearer FFO: $24.7 million for the quarter. Standard Bearer EBITDAR-to-Rent Coverage Ratio: 2.4 times. Lease Adjusted Net Debt-to-EBITDA Ratio: 2.0 times. Annual 2026 Earnings Guidance: Increased to $7.75 to $7.85 per diluted share. Annual 2026 Revenue Guidance: Increased to $5.87 billion to $5.92 billion. Warning! GuruFocus has detected 3 Warning Signs with ENSG. Is ENSG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ensign Group Inc (NASDAQ:ENSG) reported record Q2 results with GAAP diluted EPS of $1.68, up 16.7% year-over-year, and adjusted diluted EPS of $1.92, up 20.8%. The company raised its full-year 2026 earnings guidance to $7.75-$7.85 per diluted share, up from $7.48-$7.62, reflecting strong operational momentum. Same-store and transitioning occupancy reached 84.1% and 84.7%, respectively, with skilled mix days up 6.2% and managed care revenue up 16.2% year-over-year. Clinical outcomes are industry-leading, with over 80% of skilled nursing operations earning a CMS quality measure rating of 4 or 5 stars and zero CMS Special Focus facilities. The company has a strong balance sheet with $262.3 million in cash, $592 million available under its line of credit, and a lease-adjusted net debt-to-EBITDA ratio of 2.0 times. Leadership stability is a key differentiator, with administrator turnover 46% lower than the CMS state average and RN retention 8% better than the 17-state footprint average. Ensign added 20 new operations in Q2, including 19 in Texas, expanding its portfolio to 398 affiliates with significant long-term turnaround potential. The Reserve case study highlights a successful turnaround: from a Special Focus facility to a 5-star CMS rating, 92% occupancy, and 97% EBIT growth year-over-year. Newly acquired Texas operations are currently below average occupancy and present significant clinical and operational hurdles, with no immediate accretion expected. The company faces ongoing labor cost pressures, though contract labor usage has stabilized at low levels and turnover is improving faster than the industry average. Medicaid rate increases remain modest, with only stability expected rather than major uplifts, which could limit revenue growth from this payer source. CMS changes to the five-star quality measure rating methodology could impact some facilities, though preliminary analysis shows a smaller-than-expected effect. The company's growth strategy relies heavily on finding and retaining local leadership talent, which remains a challenge and a common reason for passing on acquisition opportunities. Seasonality in occupancy and skilled mix, along with potential delays in state budgets, could create quarterly volatility in financial performance. The large bolus of recently acquired facilities (71 operations since 2025) may take time to transition to same-store status and generate expected returns. Here are the key highlights from the Ensign Group Inc (NASDAQ:ENSG) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Regarding the recent large acquisition of facilities in Texas, what is the realistic timeline for these newly acquired operations to transition from the "recently acquired" phase into the "same-store" bucket, particularly in terms of reducing contract labor and improving retention? A: (Barry Port, CEO) These recent acquisitions are much more representative of our typical turnaround transitions, with low occupancy and low skilled mix, which presents a significant opportunity. Unlike some higher-occupancy acquisitions in prior years, these will take more time. We show the growth trajectory in our investor deck, illustrating improvement over 5, 15, and 45 quarters. (Suzanne Snapper, CFO) The current performance of these acquisitions is already baked into our guidance for Q3 and Q4. Any upside to guidance would require them to perform better than our current projections. Q: Can you provide an update on the labor dynamics you are seeing, including wage increases, turnover rates, and contract labor usage? A: (Spencer Burton, COO) We are seeing good stability and low levels of contract labor usage, particularly for nursing registry (RNs and CNAs), which has been flat over the last year and is incrementally declining. While the industry-wide labor situation is improving, we are excited that our turnover rates are improving at a quicker pace than the industry average, creating a greater separation. Overtime is also trending in a positive direction, which is important for both cost and caregiver quality. Q: With the recent changes to CMS's five-star quality measure (QM) rating methodology, what initial indications are you seeing on the impact to Ensign's QM ratings? A: (Spencer Burton, COO) We are still doing preliminary analysis, but we are actually pretty pleased with the results so far. The impact on us is significantly less than what the American Health Care Association had projected for the industry. In some cases, the impact is being counteracted by improvements in other areas of the five-star rating system, so the net effect on our overall five-star ratings is looking to be minimal. Q: The Board authorized a share repurchase program. How should we think about this as a capital allocation priority compared to M&A and internal investments? A: (Barry Port, CEO) This is not a new program for us; we have had one for a while. The Board increased the authorization because we feel confident in our direction and believe the stock was undervalued at the time of approval. (Suzanne Snapper, CFO) This is a standard part of our capital allocation strategy. As we continue to grow, you should expect the authorization to increase. This will not impact our acquisition strategy at all, as we still have significant liquidity. Q: Can you discuss the performance of your operations in the Southeast, a relatively new and underpenetrated area, and whether there are structural differences that might limit occupancy growth compared to more mature facilities in other regions? A: (Barry Port, CEO) We are really excited about the Southeast. Our success in Tennessee has been tremendous, with great growth in both quality outcomes and earnings. South Carolina has also been a very strong state, and we feel good about our progress in Alabama. We are constantly evaluating new opportunities in these states and adjacent ones, and I wouldn't be surprised if we grow into new states in the region this year or next. Q: When you acquire a facility, how has your approach evolved regarding whether to retain the existing leadership team or replace them with your own people? A: (Spencer Burton, COO) We have improved our ability to identify and retain great external talent as part of our underwriting process. For example, in our Tennessee acquisition, the majority of leaders still in place were there before we arrived. This success comes from better processes for our local leaders to access and vet talent. While our internal AIT program remains a major source of leaders, we recognize that to grow as we want to, we must also successfully integrate outside leaders. (Chad Keetch, CIO) A key to this is gaining early access to the seller's team during due diligence, which allows us to get to know them and jointly announce the acquisition, creating a positive transition. Q: Can you provide an update on your discussions with states regarding Medicaid rates and any changes you are seeing in managed care contracting? A: (Barry Port, CEO) On the state budget side, it is always dynamic, but we are encouraged by what we are seeing. We have active engagement in all our states and good visibility into the direction for this year and into next year in some states. We feel good about rate stability, though we are not expecting major increases. On the managed care side, we continue to benefit from great relationships with our partners. We have also seen great growth with the Veterans Administration (BA), becoming a larger provider for them. Q: Regarding Standard Bearer's recent acquisitions of third-party managed facilities, how are you assessing these third-party managers and what is the strategy for the mix of the portfolio? A: (Chad Keetch, CIO) Our first priority is always to own and operate the facility ourselves. Our second priority is to do attractive long-term leases where we lease from someone else. The third scenario, where we own and lease to a third party, typically arises in portfolio deals where not all buildings are a fit for Ensign to operate, often due to geography. The Pennon Group is our largest third-party tenant, but we are expanding our base of other skilled nursing operators. We receive a lot of outreach from smaller operators wanting to be part of what we are doing, but the biggest challenge is that we often want those assets for ourselves first. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The Ensign Group, Inc. ENSG reported a second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7%. The bottom line improved 20.8% year over year. Operating revenues advanced 17.3% year over year to $1.4 billion. The top line beat the consensus mark by 0.6%. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses. The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote Ensign Group’s adjusted net income of $114.3 million rose 22.5% year over year. Same-facilities occupancy improved 220 basis points (bps) to 84.1%, while transitioning-facilities occupancy increased 190 bps year over year to 84.7%. Total expenses escalated 17.3% year over year to $1.3 billion due to higher cost of services, rent and G&A costs and came in higher than our estimate by 0.6%. Skilled Services: The segment’s revenues totaled $1.4 billion, which grew 17.6% year over year but missed our estimate by 1.2%. The metric benefited from higher occupancy rates and improved patient days. Segment income of $179.6 million advanced 19.7% year over year. Skilled nursing facilities and campus operations were 348 and 32, respectively. Standard Bearer: Rental revenues climbed 40.2% year over year to $44.1 million in the quarter. The metric benefited from real estate purchases and increased annual rent. Segment income of $12.1 million advanced 32.3% year over year. Funds from operations amounted to $24.7 million, which increased 34.6% year over year. Ensign Group exited the second quarter with cash and cash equivalents of $262.3 million, which fell from the 2025-end figure of $503.9 million. It had $591.6 million of available capacity under its line of credit. Total assets of $5.7 billion increased from $5.5 billion at the end of 2025. Long-term debt — less current maturities — totaled $135.6 million, down from $137.5 million as of Dec. 31, 2025. Current maturities of long-term debt amounted to $4.2 million. Total equity of $2.4 billion advanced from the 2025-end figure of $2.2 billion. ENSG generated net cash from operations of $272.1 million in the first half of 2026, which grew from the prior-year figure of $228 million. ENSG bought back shares worth $40 million in the second quarter of 2026. As of June 30, 2026, $60 million remained available under the company’s stock repurchase program. The company also paid a quarterly cash dividend of 6.5 cents per share of Ensign common stock. ENSG has raised its full-year 2026 outlook. Revenues are now expected to range between $5.87 billion and $5.92 billion compared with the prior guidance of $5.81-$5.86 billion. Adjusted EPS is projected to be in the band of $7.75-$7.85 per share, up from the earlier estimate of $7.48-$7.62. The weighted average common shares outstanding is currently estimated to be around 59.5 million and the tax rate is anticipated to be 25%. ENSG currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in The Ensign Group, Inc.? Here are five stocks we like better. Ensign raised its 2026 outlook after strong second-quarter results, with adjusted EPS up 20.8% to $1.92 and revenue increasing 17.3% to $1.4 billion. Full-year diluted EPS guidance rose to $7.75–$7.85, while revenue guidance increased to $5.87–$5.92 billion. Operating performance improved, with same-store occupancy reaching 84.1%, skilled-mix days growing, and more than 80% of skilled nursing operations receiving four- or five-star CMS quality ratings. The company also highlighted substantial clinical and financial improvements at The Reserve facility after its 2023 acquisition. Acquisition activity remains a key growth driver: Ensign added 20 operations during and after the quarter, including 19 in Texas, bringing its 2025-and-later total to 71 acquisitions. The company spent more than $460 million on growth in the first half and ended the quarter with over $850 million in available liquidity, including cash and credit capacity. The Ensign Group (NASDAQ:ENSG) raised its 2026 earnings and revenue outlook after reporting second-quarter gains in revenue, earnings and occupancy, while highlighting continued acquisition activity and clinical quality measures across its skilled nursing portfolio. For the second quarter, the company reported GAAP diluted earnings per share of $1.68, up 16.7% from a year earlier. Adjusted diluted earnings per share increased 20.8% to $1.92. Consolidated GAAP revenue and adjusted revenue each rose 17.3% to $1.4 billion, while GAAP net income increased 18.2% to $99.7 million. Adjusted net income grew 22.5% to $114.3 million. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Chief Executive Officer Barry Port said the company increased its full-year 2026 diluted earnings guidance to $7.75 to $7.85 per share, from prior guidance of $7.48 to $7.62 per share. Ensign also raised its annual revenue forecast to between $5.87 billion and $5.92 billion, compared with its earlier outlook of $5.81 billion to $5.86 billion. Port said the midpoint of the revised earnings outlook would represent growth of 18.7% over 2025 and 41.8% over 2024. CFO Suzanne Snapper said the guidance incorporates acquisitions completed and expected to close during the third quarter, as well as management’s expectations for reimbursement rates. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Snapper said the company ended June with $262.3 million in cash and cash equivalents and generated $272.1 million in operating cash flow. Ensign spent more than $460 million during the first half of 2026 on its growth strategy, while its lease-adjusted net debt-to-EBITDA ratio stood at 2 times. The company had more than $592 million available under its credit line, giving it more than $850 million of available liquidity when combined with cash on hand. The company paid a quarterly cash dividend of 6.5 cents per common share and said it has raised its annual dividend for 23 consecutive years. → Innovative ETF Strategies That Are Paying Off This Summer Port said same-store occupancy was 84.1% in the second quarter, while transitioning facilities had occupancy of 84.7%. Combined same-store and transitioning-facility revenue increased 10.7% year over year, while days increased 6.7%. Managed care revenue rose 6.1% for same-store operations and 16.2% for transitioning operations. Skilled-mix days increased 6.2% and 9.4%, respectively, from the second quarter of 2025. The company said more than 80% of its skilled nursing operations had four- or five-star CMS quality-measure ratings at quarter-end. Port said Ensign’s same-store facilities recorded quality-measure ratings 23% above averages in the states where it operates. He also said Cycle 1 inspection results were 18% better than state averages and 26% better than county averages. According to Port, Ensign’s rehospitalization rates and long-stay emergency department visit rates were better than national averages by 15% and 24%, respectively. The company said it had no CMS Special Focus Facilities among its affiliated operations. During the question-and-answer session, President and COO Spencer Burton said CMS methodology changes to five-star ratings are expected to affect the company, but preliminary analysis suggests the impact could be less severe than industry expectations. Burton said improvements in other rating areas may offset some changes, and the net effect on Ensign’s overall five-star ratings “is actually looking to not be that much.” Burton highlighted The Reserve, a 135-bed skilled nursing operation in the Charleston, South Carolina, area that Ensign acquired in 2023 while it was under state conservatorship and designated as a CMS Special Focus Facility. Prior to the transition, the facility had received a Cycle 1 survey score of 500 points, which Burton said was more than 900% worse than the South Carolina average. The operation had low occupancy, staffing shortages, contract labor use and limited ability to accept admissions. Burton said The Reserve exited the Special Focus Facility program six months after the acquisition and has since recorded three consecutive deficiency-free health inspections. It now has a five-star CMS overall rating and five-star quality-measure rating, according to the company. The facility reached 100% occupancy during the second quarter and averaged 92% occupancy for the period, compared with 83% in the prior-year quarter. Skilled days rose 39%, managed care revenue increased 69%, total revenue rose 18% and EBIT increased 97% from a year earlier, Burton said. Chief Investment Officer Chad Keetch said Ensign added 20 operations during and after the quarter, all including real estate assets. The purchases brought the number of operations acquired during 2025 and since to 71. The latest additions included 19 operations in Texas and one in Iowa, adding 2,392 skilled nursing beds, 100 senior living beds and 55 independent living beds. Keetch said recently acquired operations now account for 18% of the company’s portfolio. He described the Texas properties as newly constructed, high-quality facilities in growing metropolitan markets, but said they generally have below-average occupancy for their geographies and face clinical and operational challenges. The facilities are not currently accretive, Port said, and may take time to generate expected returns. Keetch said the company reviewed more than 350 acquisition opportunities within its markets so far this year and completed 25 transactions. He said leadership planning remains a central consideration in acquisition decisions, with Ensign sometimes retaining existing administrators and other times installing experienced leaders or graduates of its administrator-in-training program. Standard Bearer Healthcare REIT added 23 assets during and after the quarter, including two senior living communities in Wisconsin and a memory-care facility in California that will be operated by third parties under triple-net leases. The REIT owned 177 properties at quarter-end, including 140 leased to Ensign-affiliated operators and 38 leased to third-party operators. Standard Bearer generated $44.1 million in rental revenue during the quarter, including $37.8 million from Ensign-affiliated operations, and reported $24.7 million in funds from operations. Its EBITDA-to-rent coverage ratio was 2.4 times at quarter-end. The Ensign Group, Inc is a diversified provider of post-acute healthcare services in the United States, operating a network of skilled nursing, assisted living, independent living, home health and hospice care centers. The company's model emphasizes integrated care by employing multidisciplinary teams—including nursing staff, therapists and physicians—to deliver personalized rehabilitation and long-term care services for seniors and other patients recovering from injury, illness or surgery. Through its owned and managed centers, The Ensign Group offers a broad spectrum of rehabilitation services such as physical, occupational and speech therapy. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "The Ensign Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Ensign Group (ENSG) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this provider of nursing and rehabilitative care services would post earnings of $1.79 per share when it actually produced earnings of $1.85, delivering a surprise of +3.35%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Ensign Group, which belongs to the Zacks Medical - Nursing Homes industry, posted revenues of $1.44 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $1.23 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ensign Group shares have lost about 0.7% since the beginning of the year versus the S&P 500's gain of 8.3%. While Ensign Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ensign Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.89 on $1.47 billion in revenues for the coming quarter and $7.53 on $5.82 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Nursing Homes is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Medical sector, Fresenius SE & Co. (FSNUY), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +4.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Fresenius SE & Co.'s revenues are expected to be $6.85 billion, up 8.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report Fresenius SE & Co. (FSNUY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ensign Group (ENSG) reported $1.44 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 17.3%. EPS of $1.92 for the same period compares to $1.59 a year ago. The reported revenue represents a surprise of +0.63% over the Zacks Consensus Estimate of $1.43 billion. With the consensus EPS estimate being $1.80, the EPS surprise was +6.67%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Ensign Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Skilled Nursing Average Daily Revenue Rates - Medicare: $822.24 million versus $820.32 million estimated by two analysts on average. Skilled Nursing Average Daily Revenue Rates - Managed care: $609.07 million compared to the $603.73 million average estimate based on two analysts. Skilled Nursing Average Daily Revenue Rates - Private and other payors: $326.2 million versus $329.44 million estimated by two analysts on average. Skilled Nursing Average Daily Revenue Rates - Medicaid: $313.78 million versus the two-analyst average estimate of $312.16 million. Skilled Nursing Average Daily Revenue Rates - Other Skilled: $655.51 million versus $674.8 million estimated by two analysts on average. Total Revenue- Skilled Services: $1.38 billion compared to the $1.38 billion average estimate based on two analysts. The reported number represents a change of +17.6% year over year. View all Key Company Metrics for Ensign Group here>>> Shares of Ensign Group have returned +6.1% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Healthcare services company The Ensign Group (NASDAQ:ENSG). fell short of the market’s revenue expectations in Q2 CY2026, but sales rose 10.7% year on year to $1.44 billion. On the other hand, the company’s full-year revenue guidance of $5.90 billion at the midpoint came in 0.9% above analysts’ estimates. Its GAAP profit of $1.68 per share was 2.2% below analysts’ consensus estimates. Is now the time to buy The Ensign Group? Find out in our full research report. Revenue: $1.44 billion vs analyst estimates of $1.56 billion (10.7% year-on-year growth, 7.9% miss) EPS (GAAP): $1.68 vs analyst expectations of $1.72 (2.2% miss) Adjusted EBITDA: $181.1 million vs analyst estimates of $171.4 million (12.6% margin, 5.7% beat) The company lifted its revenue guidance for the full year to $5.90 billion at the midpoint from $5.84 billion, a 1% increase EPS (GAAP) guidance for the full year is $7.80 at the midpoint, beating analyst estimates by 10.2% Operating Margin: 8.5%, in line with the same quarter last year Sales Volumes fell 76% year on year (-59% in the same quarter last year) Market Capitalization: $10.03 billion "This quarter's results are another reflection of that enduring connection between the commitment of our local leaders to delivering high-quality care in their communities and our financial performance. We believe exceptional outcomes ultimately create their own form of accountability, because residents, families, referral partners, regulators, and payers all independently validate whether an operation is truly delivering value,” said Barry Port, Chief Executive Officer of The Ensign Group. 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. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, The Ensign Group’s sales grew at an impressive 17.7% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. The Ensign Group’s annualized revenue growth of 19.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can dig further into the company’s revenue dynamics by analyzing its number of units sold, which reached 447,826 in the latest quarter. Over the last two years, The Ensign Group’s units sold averaged 18.5% year-on-year declines. Because this number is lower than its revenue growth, we can see the company benefited from price increases. This quarter, The Ensign Group’s revenue grew by 10.7% year on year to $1.44 billion but fell short of Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 16.9% over the next 12 months, a slight deceleration versus the last two years. Despite the slowdown, this projection is healthy and suggests the market is baking in success for its products and services. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. The Ensign Group was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 9.8% was weak for a healthcare business. Looking at the trend in its profitability, The Ensign Group’s adjusted operating margin decreased by 1.1 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. The Ensign Group’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. This quarter, The Ensign Group generated an adjusted operating margin profit margin of 9.6%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. The Ensign Group’s EPS grew at a spectacular 13.9% compounded annual growth rate over the last five years. However, this performance was lower than its 17.7% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of The Ensign Group’s earnings can give us a better understanding of its performance. As we mentioned earlier, The Ensign Group’s adjusted operating margin was flat this quarter but declined by 1.1 percentage points over the last five years. Its share count also grew by 4.4%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, The Ensign Group reported EPS of $1.68, up from $1.44 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects The Ensign Group’s full-year EPS to grow 17.3% from $6.39 to $7.49. We were impressed by how significantly The Ensign Group blew past analysts’ full-year EPS guidance expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street’s estimates. On the other hand, its revenue missed and its EPS fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock traded up 4.3% to $180.39 immediately after reporting. So should you invest in The Ensign Group right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.