Encompass Health Corporation (NYSE:EHC) Given Average Rating of “Buy” by Brokerages

Shares of Encompass Health Corporation (NYSE:EHC) have been assigned an average recommendation of “Buy” from the ten analysts that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold rating, seven have assigned a buy rating and two have given a strong buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $143.2857.

Several analysts have recently issued reports on EHC shares. Raymond James Financial raised shares of Encompass Health to a “strong-buy” rating in a research report on Friday, October 31st. Barclays boosted their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a report on Friday. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Finally, Zacks Research lowered Encompass Health from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently bought and sold shares of EHC. EverSource Wealth Advisors LLC lifted its stake in Encompass Health by 10.8% in the 4th quarter. EverSource Wealth Advisors LLC now owns 5,172 shares of the company’s stock worth $549,000 after purchasing an additional 505 shares in the last quarter. Global Retirement Partners LLC raised its position in shares of Encompass Health by 2,468.6% in the fourth quarter. Global Retirement Partners LLC now owns 11,533 shares of the company’s stock worth $1,224,000 after buying an additional 11,084 shares in the last quarter. Covestor Ltd boosted its stake in Encompass Health by 24.4% during the fourth quarter. Covestor Ltd now owns 540 shares of the company’s stock valued at $57,000 after buying an additional 106 shares during the period. GSA Capital Partners LLP grew its position in Encompass Health by 87.0% during the fourth quarter. GSA Capital Partners LLP now owns 14,353 shares of the company’s stock worth $1,523,000 after buying an additional 6,676 shares in the last quarter. Finally, Handelsbanken Fonder AB increased its stake in Encompass Health by 22.2% in the 4th quarter. Handelsbanken Fonder AB now owns 29,753 shares of the company’s stock worth $3,158,000 after acquiring an additional 5,400 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Key Headlines Impacting Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Q4 EPS beat — Encompass reported adjusted EPS of $1.46 vs. consensus $1.29, a clear beat that was the primary catalyst for the rally. Earnings Beat Article
• Positive Sentiment: Revenue growth and profitability — Revenue was $1.54B, up ~9.9% year-over-year; net margin (~9.33%) and ROE (~17.8%) show healthy operating leverage in the quarter. Those metrics reinforce the quality of the beat. PR News Release
• Positive Sentiment: FY2026 guidance issued — Management guided FY2026 EPS to $5.810–$6.100 and revenue to $6.4–$6.5B, broadly in line with Street expectations and giving investors a clear framework for 2026. That helped limit post-earnings uncertainty. Guidance Article
• Neutral Sentiment: Revenue met, not exceeded, estimates — while revenue grew y/y, the $1.54B figure was essentially in line with consensus, so the surprise was driven mainly by margin/earnings rather than top-line upside. Metrics vs Estimates
• Neutral Sentiment: Investor materials and call available — management provided a slide deck and held the conference call (transcript available) for additional color on volumes, payor mix and margin outlook; useful for modeling but no new headline surprises. Earnings Call Transcript
• Negative Sentiment: Guidance conservatism at the low end — the EPS guidance lower bound (5.810) is marginally below the consensus cited in some coverage (5.820); some traders may view the range as conservative, so watch guidance execution and quarterly cadence. Guidance Detail

Encompass Health Trading Up 6.0%

NYSE:EHC opened at $105.55 on Wednesday. Encompass Health has a 12 month low of $92.53 and a 12 month high of $127.99. The company has a current ratio of 1.08, a quick ratio of 1.14 and a debt-to-equity ratio of 0.76. The firm’s 50 day moving average is $104.26 and its 200 day moving average is $114.49. The stock has a market capitalization of $10.62 billion, a PE ratio of 19.05, a price-to-earnings-growth ratio of 1.66 and a beta of 0.73.

Encompass Health (NYSE:EHC) last released its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The business’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same period last year, the business posted $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Sell-side analysts expect that Encompass Health will post 4.8 earnings per share for the current year.

About Encompass Health

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.