Ensign's Boat Rises in a Sinking Tide

| About: The Ensign (ENSG)
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In today's market it's getting harder to find rising stocks. But while screening with Barchart I noticed the Ensign Group (NASDAQ:ENSG), which has hit 14 new highs and is up 11.35% in a month while the Value Line Index has lost 6.76%. The company is smack in the middle of the long term care and assisted living field and should have good long term possibilities.

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The Ensign Group, through its subsidiaries, provides nursing and rehabilitative care services in California, Arizona, Texas, Washington, Utah, Colorado and Idaho. The company offers nursing and assisted living services; physical, occupational, and speech therapies; home health and hospice services; and other rehabilitative and health are services for long-term residents and short-stay rehabilitation patients. As of June 1, 2011, it operated 87 health care facilities. The company was founded in 1999 and is based in Mission Viejo, California. (Yahoo Finance)

Factors to Consider

Barchart Technical Indicators:

  • 80% Barchart technical buy indicators
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 14 new highs and up 11.35% in the last month
  • Relative Strength Index is 69.06% and rising
  • Trades around 31.48 with a 50 day moving average of 30.08

Fundamental Factors

  • Wall Street brokerage analysts have discovered this stock and posted three strong buy, one buy and a hold recommendation for clients.
  • Sales are projected to increase by 16.60% this year and another 4.40% next year.
  • Earnings estimates are for an increase of 18.10% this year, 5.80% next year and 13.33% annually for the next five years.

General Investor Sentiment

  • As measured on Motley Fool, 97% of the 377 readers posting opinions were positive.
  • CAPS members voted 270 to 9 that the stock would beat the market.
  • The more experienced All Stars also were positive 97 to 1.

Summary: Investors in the Ensign Group have seen a 197.03% total return over the last three years. Both Wall Street and the individual investor think this is one stock that will beat the market and analysts predict annual double digit earnings growth over the next five years. You have a decision in this sinking market to sit on the sidelines or keep investing. If you're still in the market, this looks like a good choice.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.