Stock Of The Day: Top Growth And Defensive Stock Near Buy Point

2026-03-27 18:35:20

			Ensign Group

				Ensign Group

			ENSG

$ 201.60

IBD Stock Analysis

										*   Early entry at 206.30, or on a break above the 21-day exponential moving avg.
										*   Relative Strength line is moving to new highs.

IBD Composite Rating

97/99

Industry Group Ranking

34/197

Emerging Pattern

				Pullback

Pullback

				A stock may pull back after a breakout, often to the 50-day line. A rebound from the first or second visit to the 50-day can be a buying opportunity, especially for existing holders to add some shares.

Not real-time data. All data shown was captured at 2:07PM EDT on 03/27/2026.

Ensign Group (ENSG) is Friday’s IBD Stock Of The Day as the provider of skilled nursing, senior living and rehabilitative services shows relative strength in a tough market. Shares of the San Juan Capistrano, Calif., company rose off a key support level, putting the growth stock in striking distance of an early entry opportunity.

Ensign is in an economically defensive health care industry group that’s resistant to downturns, yet the stock is a recent addition to the IBD 50 flagship list of leading growth stocks.

Skilled-Nursing Growth Stock

Ensign operates 378 skilled nursing and senior living facilities in 17 states, pursuing an aggressive acquisition strategy. It also has an in-house real estate investment trust for managing its properties.

Its $11.7 billion market capitalization is by far the biggest in IBD’s Medical-Long-Term Care industry group. There are multiple avenues for growth. Raising occupancy above 83% of capacity provides “enough organic growth potential to sustain our consistent earnings and revenue growth, even if we stopped acquiring,” CEO Barry Port said on a Feb. 5 earnings call.

That reflects confidence that Ensign can raise occupancy toward the mid-90% level achieved by some of its more mature operations. Serving higher-acuity patients requiring skilled-nursing care is another growth driver, with an 8.5% increase in skilled days on a same-facility basis in Q4. Demographics are driving that trend.

“When we look at the overall picture of the supply of beds and then this wave of patients coming, it’s just an enormous tailwind for us,” Chad Keetch, chief investment officer, told an Oppenheimer health care conference on March 20.

Ensign takes pride in its “relentless, patient-focused culture that drives our front-line partners to deliver the highest-quality clinical outcomes,” according to Port. Being the provider of choice helps bolster its acquisition opportunities. He says Ensign’s clinical excellence is supported by 5-Star quality ratings from the Center for Medicare and Medicaid Services.

Analysts expect 14.4% growth in earnings per share to $7.52 in 2026, according to FactSet. Revenue is seen growing 14.5% to $5.792 billion. That’s right in line with Ensign’s outlook, which doesn’t factor in acquisitions.

ENSG Stock

Ensign’s shares rose 0.9% to 201.94 on Friday afternoon, bucking the market’s 1.25% drubbing. Ensign has found support amid a test of its 50-day and 10-week moving averages.

There are a couple of possible entry points. A move past this week’s high of 206.30, which would also mark a break above the 21-day exponential average, would offer an early entry opportunity. Also, Ensign has formed a flat base with a 218 buy point.

Ensign’s relative strength line, the blue line in IBD charts that tracks a stock’s progress vs. the S&P 500, is hitting a new high. ENSG has a 97 IBD Composite Rating, which is No. 1 in its industry group, according to IBD Stock Checkup.

Be sure to read IBD’s The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

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