The Ensign Group, Inc. (NASDAQ:ENSG) recently announced that it acquired the real estate and operations of two assisted living facilities in Texas and three assisted living facilities in Wisconsin. These facilities were previously operated by the subsidiaries of Brookdale Senior Living. The acquisition was effective from Jun 16, 2017.
Most of Ensign Group’s historical growth can be attributed to its expertise in acquiring real estate or leasing under-performing and well-performing post-acute care operations. Also, the company applies its core operating insight to improve upon each acquired operation, both clinically and financially.
The stock’s price performance reflects the inorganic growth efforts that helped it outperform the broader industry. The stock has gained 6.4% in last one year, as against the Zacks categorized Medical - Nursing Homes industry’s decline of 1.6%.
The company is actively seeking opportunities to acquire real estate and lease well-performing and struggling skilled nursing, assisted living and other healthcare related businesses throughout the United States.
These facilities had a combined occupancy rate of 80% at the time of acquisition. The latest acquisition brings Ensign Group's portfolio to 222 healthcare facilities, 20 hospice agencies, 18 home health agencies and three home care businesses across 14 states.
Management of Ensign Group believes that these acquisitions will facilitate the expansion of senior housing footprint in Texas as well as strengthen the same in Wisconsin.
Although the company follows a somewhat aggressive inorganic strategy, it continues to remain selective in order to find quality, accretive opportunities in senior housing, skilled nursing, home health, hospice and other post-acute businesses. Ensign Group expects to build on the reputation that Brookdale has already established by improving on comfort and wellness of the residents.
Zacks Rank and Stocks to Consider
Ensign Group presently has a Zacks Rank #3 (Hold). Investors can consider some better-ranked stocks like Align Technology, Inc. (NASDAQ:ALGN) , EDAP TMS S.A. (NASDAQ:EDAP) and Inogen Inc. (NASDAQ:INGN) . All the stocks sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, a medical dental supplies company, topped estimates in each of the last four quarters with an average beat of 59.23%.
Inogen is a medical instruments seller, which delivered positive surprises in each of the last four quarters with an average beat of 82.42%.
EDAP TMS delivered positive surprises in two of the last four quarters with an average beat of 366.67%.
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EDAP TMS S.A. (EDAP): Free Stock Analysis Report
Inogen, Inc (INGN): Free Stock Analysis Report
The Ensign Group, Inc. (ENSG): Free Stock Analysis Report
Align Technology, Inc. (ALGN): Free Stock Analysis Report
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