I also like Ensign Services (ENSG, Financial), which operates nursing homes and rehabilitative care services centers, often by buying underperforming facilities and vastly improving them.
It looked mispriced to me because most of its revenue stream comes primarily from Medicare, so there's ever-present pressure on the business to do things better, faster, and cheaper. I think they've been really good at that, so I see a lot of potential for the business going forward.
From Royce Funds Commentary: An Encouraging Market Turn for a Disciplined Contrarian.
