Zacks Research Has Optimistic Outlook of EHC Q1 Earnings

Encompass Health Corporation (NYSE:EHC) – Investment analysts at Zacks Research raised their Q1 2026 EPS estimates for Encompass Health in a report released on Thursday, February 19th. Zacks Research analyst Team now expects that the company will earn $1.52 per share for the quarter, up from their prior estimate of $1.44. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.80 per share. Zacks Research also issued estimates for Encompass Health’s Q2 2026 earnings at $1.49 EPS, Q3 2026 earnings at $1.40 EPS, Q4 2026 earnings at $1.62 EPS, FY2026 earnings at $6.03 EPS, Q1 2027 earnings at $1.57 EPS, Q2 2027 earnings at $1.62 EPS, Q3 2027 earnings at $1.49 EPS, Q4 2027 earnings at $1.65 EPS, FY2027 earnings at $6.32 EPS and FY2028 earnings at $7.13 EPS.

Other equities analysts have also recently issued research reports about the company. Barclays raised their price target on Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a report on Friday, February 6th. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday, January 18th. Finally, Raymond James Financial raised Encompass Health to a “strong-buy” rating in a research note on Friday, October 31st. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, Encompass Health presently has an average rating of “Buy” and a consensus target price of $143.29.

Encompass Health Trading Down 1.8%

Shares of EHC stock opened at $107.16 on Friday. 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 stock has a market capitalization of $10.78 billion, a price-to-earnings ratio of 19.34, a price-to-earnings-growth ratio of 2.08 and a beta of 0.73. Encompass Health has a 12-month low of $92.53 and a 12-month high of $127.99. The stock’s 50-day moving average price is $103.98 and its 200-day moving average price is $114.49.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.29 by $0.17. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The company had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the previous year, the firm posted $1.17 EPS. Encompass Health’s revenue for the quarter was up 9.9% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Wednesday, April 1st. Encompass Health’s payout ratio is 13.72%.

Insider Activity

In other news, CEO Mark J. Tarr sold 150,000 shares of the stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the completion of the sale, the chief executive officer owned 377,070 shares in the company, valued at approximately $42,096,094.80. This represents a 28.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Large investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD raised its position in shares of Encompass Health by 24.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock valued at $510,047,000 after purchasing an additional 948,202 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after buying an additional 3,793,358 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Encompass Health by 21.7% during the fourth quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock worth $359,271,000 after buying an additional 603,472 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in shares of Encompass Health by 27.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock valued at $289,008,000 after buying an additional 581,812 shares during the last quarter. Finally, Alliancebernstein L.P. increased its position in shares of Encompass Health by 23.4% in the 3rd quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company’s stock valued at $319,567,000 after acquiring an additional 476,564 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

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.