Zacks Research Issues Optimistic Outlook for EHC Earnings

Encompass Health Co. (NYSE:EHC) – Equities researchers at Zacks Research increased their Q4 2025 EPS estimates for Encompass Health in a research report issued on Wednesday, May 7th. Zacks Research analyst R. Sipani now forecasts that the company will earn $1.25 per share for the quarter, up from their previous forecast of $1.20. 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 $1.32 EPS, Q3 2026 earnings at $1.19 EPS, Q4 2026 earnings at $1.38 EPS, Q1 2027 earnings at $1.39 EPS and FY2027 earnings at $5.60 EPS.

A number of other equities research analysts have also issued reports on the stock. KeyCorp lifted their target price on shares of Encompass Health from $120.00 to $122.00 and gave the company an “overweight” rating in a research note on Friday, April 25th. UBS Group boosted their target price on shares of Encompass Health from $117.00 to $130.00 and gave the stock a “buy” rating in a research report on Monday, April 28th. Truist Financial restated a “buy” rating and set a $135.00 price target (up previously from $116.00) on shares of Encompass Health in a report on Monday, April 28th. Royal Bank of Canada increased their target price on shares of Encompass Health from $110.00 to $125.00 and gave the stock an “outperform” rating in a research report on Monday, April 28th. Finally, William Blair reissued an “outperform” rating on shares of Encompass Health in a report on Friday, February 7th. One investment analyst has rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and an average target price of $120.86.

Encompass Health Stock Performance

Shares of EHC stock opened at $116.45 on Friday. The stock’s fifty day simple moving average is $103.44 and its 200-day simple moving average is $99.93. The company has a market capitalization of $11.74 billion, a price-to-earnings ratio of 26.11, a P/E/G ratio of 2.31 and a beta of 0.91. The company has a current ratio of 1.05, a quick ratio of 1.04 and a debt-to-equity ratio of 0.84. Encompass Health has a 1-year low of $82.74 and a 1-year high of $118.27.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.19 by $0.18. The firm had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Encompass Health had a return on equity of 17.56% and a net margin of 8.48%. Encompass Health’s revenue was up 10.6% on a year-over-year basis. During the same quarter last year, the business posted $1.12 EPS.

Hedge Funds Weigh In On Encompass Health

A number of large investors have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. acquired a new position in shares of Encompass Health during the fourth quarter valued at $152,953,000. Norges Bank acquired a new stake in Encompass Health during the 4th quarter worth $100,637,000. Raymond James Financial Inc. bought a new stake in shares of Encompass Health during the 4th quarter valued at $77,944,000. Jennison Associates LLC acquired a new position in shares of Encompass Health in the 4th quarter valued at $52,094,000. Finally, Farallon Capital Management LLC boosted its position in shares of Encompass Health by 15,266.7% in the 4th quarter. Farallon Capital Management LLC now owns 461,000 shares of the company’s stock worth $42,573,000 after purchasing an additional 458,000 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Encompass Health

In related news, CAO Andrew L. Price sold 5,042 shares of the stock in a transaction that occurred on Thursday, February 13th. The stock was sold at an average price of $98.29, for a total transaction of $495,578.18. Following the sale, the chief accounting officer now directly owns 69,164 shares in the company, valued at $6,798,129.56. This represents a 6.79 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John Patrick Darby sold 10,000 shares of Encompass Health stock in a transaction on Tuesday, April 29th. The shares were sold at an average price of $114.79, for a total value of $1,147,900.00. Following the completion of the transaction, the executive vice president now owns 79,710 shares of the company’s stock, valued at approximately $9,149,910.90. The trade was a 11.15 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 19,321 shares of company stock valued at $2,142,452 in the last 90 days. 2.00% of the stock is owned by corporate insiders.

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, July 1st. This represents a $0.68 annualized dividend and a dividend yield of 0.58%. Encompass Health’s dividend payout ratio (DPR) is presently 14.05%.

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.