Stock of the Day

December 29, 2021

Encompass Health (EHC)

$112.24
-$0.25 (-0.2%)
Market Cap: $11.16B

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. The company was incorporated in 1984 and is based in Birmingham, Alabama.

Today's Trend

Encompass Health Corporation (NYSE: EHC) is getting mixed analyst attention after Zacks Research updated multiple earnings forecasts. The stock has been slightly lower as investors weigh a few downward revisions for near-term quarters against stronger outlooks for later years.

  • Zacks Research raised its FY2027 EPS estimate for Encompass Health to $6.35 from $6.32, and also nudged FY2028 EPS higher to $7.16 from $7.13, signaling expectations for continued longer-term earnings growth.
  • The firm also increased its Q1 2027 EPS estimate to $1.63 from $1.57 and Q1 2028 EPS to $1.80 from $1.73, which may support confidence in future operating performance.
  • Zacks Research left several other estimates unchanged, including FY2026 EPS at $5.96 and the company’s broader earnings profile, while the consensus full-year estimate remains $5.97 per share.
  • The analyst firm lowered near-term estimates for Q2 2026 to $1.46 from $1.49, Q3 2026 to $1.36 from $1.40, and Q4 2026 to $1.55 from $1.62, suggesting some caution around the next few quarters.
  • Additional cuts were made to Q2 2027 EPS to $1.60 from $1.62 and Q4 2027 EPS to $1.64 from $1.65, reinforcing a mildly softer near-term earnings view.

Overall, the stock’s move appears tied to the balance between stronger long-term EPS expectations and slightly weaker short-term forecasts from Zacks Research.

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