• Ensign Group (ENSG) is showing strong technical momentum, setting a new 52-week high on Aug. 20.
• The stock has a Trend Seeker “Buy” signal intact.
• Shares are up more than 26% in the year to date.
• The stock is trading above key moving averages and has a 100% “Buy” opinion from Barchart’s technical indicators.

Today’s Featured Stock

Valued at $9.6 billion, The Ensign Group (ENSG) provides healthcare services in the post-acute care continuum. It also operates urgent cares and mobile x-ray businesses in the U.S.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ENSG checks those boxes. Since the Trend Seeker signaled a buy on Aug. 1, the stock gained 10.06%.

ENSG Price vs. Daily Moving Averages:

Barchart Technical Indicators for Ensign

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Ensign shares hit a new 52-week high on Aug. 20, touching $167.93 in morning trading.

• Ensign has a Weighted Alpha of +22.54.
• ENSG has an 100% “Buy” opinion from Barchart.
• The stock gained 16.72% over the past year.
• ENSG has its Trend Seeker “Buy” signal intact.
• Ensign is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 17 new highs and gained 22.62% in the last month.
• Relative Strength Index (RSI) is at 73.77%.
• There’s a technical support level around $165.06.

Don’t Forget the Fundamentals

• $9.6 billion market capitalization.
• 30.16 trailing price-earnings ratio.
• 0.15% dividend yield.
• Revenue is projected to grow 17.62% this year and another 10.94% next year.
• Earnings are estimated to increase 16.63% this year and an additional 12% next year.

Analyst and Investor Sentiment on Ensign

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish on ENSG, and so is CFRA’s MarketScope Advisor.

• The Wall Street analysts tracked by Barchart have issued 4 “Strong Buy,” 1 “Moderate Buy,” and 1“Hold” opinion on the stock.
• Their price targets are between $156-$195.
• Value Line gives the stock its above average rating.
• CFRA’s MarketScope Advisor gives the stock a “Strong Buy” rating.
• Morningstar thinks the stock is 13% overvalued.
• 950 individual investors on Motley Fool think the stock will beat the market while 144 think it won’t.
• 4,620 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Ensign

Ensign currently has momentum and is hitting new highs.

I caution that ENSG is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.