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EHC·Encompass Health Corporation

$126.54
+2.21 (+1.78%)
After Hours
High
$126.72
Open
$124.88
Market Cap
12.33B
52W High
$127.99
Low
$124.70
P. Close
$126.54
P/E
19.85
52W Low
$92.77
Fwd P/E
18.62
DailyIQ Est.
$150.00
Inst. Ownership
47.1%
Short Interest
3.52%
Days to Cover
3.5
Div. Yield
0.62%
Next Ex-Div
~Jan 1
Technical Score (1D)
86
BULLISH
News Sentiment
53
MIXED
On Oct 13, Encompass Health (EHC) was reported to have advanced 15.7% over the past six months, a rise that mirrored the S&P 500’s 13.5% gain. The same day, the company’s free cash flow margin was noted to have increased by 3.4 percentage points over five years, indicating stronger financial flexibility. EHC was described as operating 161 specialized inpatient rehabilitation facilities across 37 states and Puerto Rico, serving patients recovering from strokes, hip fractures, and other conditions. The upward price movement was attributed to market confidence in the company’s operational performance and cash generation. No material guidance changes or adverse events were reported.
LOW TARGET
$140 +10.5%
1 analysts
MEAN TARGET
$148 +16.9%
8 analysts
HIGH TARGET
$155 +22.3%
11 analysts
PRICE RANGE
$140.00 - $155.00
SB / B / H / S / SS
7/10/1/1/1
DAILYIQ EST.
$150.00 (+18.4%)
Bought (1Y)
0 shares
$0
Sold (1Y)
210,992 shares
$26.4M
Darby John PatrickEVP, Gen Counsel & Secretary
Option Exercise4,858 shares2026-08-31
Darby John PatrickEVP, Gen Counsel & Secretary
Sell4,858 shares2026-08-31
Darby John PatrickEVP, Gen Counsel & Secretary
Option Exercise4,858 shares2026-08-31
Price Andrew LChief Accounting Officer
Sell5,211 shares2026-08-31
Darby John PatrickEVP, Gen Counsel & Secretary
Sell8,906 shares2026-08-10
74/ 100
Bullish
Overall: Bullish
✓Revenue growing year over year
✓Positive net margin
✓Positive operating cash flow
Net Margin
9.5%
Revenue CAGR
7.2%
Current Ratio
1.08x
Debt / Equity
1.00x
Return on Equity
23.2%

EPS

EstBeatMiss
$1.17$1.22$1.27$1.33$1.38Q3'25Q3'26
QtrEstActual+/−
Q3'26$1.36 - -
Q3'25$1.19$1.23+3.2%

Revenue

EstBeatMiss
$1.5B$1.5B$1.5B$1.6B$1.6BQ3'25Q3'26
QtrEstActual+/−
Q3'26$1.6B - -
Q3'25 - $1.5B -

Market Data

EHC Stock Snapshot

BULLISH86/100
$126.72+$0.18 (0.1%)
Market cap
12.33B
P/E ratio
19.9
Day range
$124.70 – $126.72
News sentiment
53/100 · Neutral
Analyst target
$148.17 (+16.9%)
Consensus
Buy · 20 analysts
52-week range+36.6% off low · -1.0% from high
$92.77$127.99
Price $126.72 DailyIQ Est. $150.00

Encompass Health Corporation screens well technically, with price sitting near its 52-week high. Earnings and guidance carry more weight than macro data at this capitalisation.

Reverse DCF

What growth is priced into EHC?

RICH

At today's price, Encompass Health Corporation needs to grow free cash flow about 12.1% a year for the next 10 years to justify its valuation at a 7.11% cost of capital. Over its actual history it has compounded free cash flow at 1.0% a year, so the market is asking for 11.1 percentage points above its own delivered rate. On that basis EHC looks priced above what its own growth record supports.

Implied FCF growth
12.1%
Historical FCF CAGR
1.0%
Growth gap
+11.1 pts
Verdict
RICH
Discount rate (WACC)
7.11%
Beta
0.50

Behaviour On Record

What EHC's own history says about today's numbers

Realized volatility (21d)
36.1% 88th pct
Below its peak
-0.5%
vs 200-day average
+16.3%
Up days (1y)
47%

Encompass Health Corporation is currently running 36.1% annualised volatility over the last 21 sessions. Measured against EHC's own 13 years of daily returns rather than a market-wide average, that is the 88th percentile — elevated for this stock, against a typical reading of 23.7%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

EHC is at its running peak. Across 12 full years on file its median worst-drawdown-in-a-year was -17.5%, with the deepest at -39.5% in 2020 — so highs have historically been given back before they were extended.

Price sits +16.3% from its 200-day moving average. Against every other day in its history, that gap ranks at the 85th percentile — a wider gap than this stock usually carries. Over the past year EHC closed higher on 47% of sessions, and it is currently 1 session into a rising streak.

On October specifically: over 14 years of records, EHC finished the month higher 6 of 14 times, with a median return of -1.0% and an average of -1.1%. Its strongest month historically has been April at +6.7% on average, its weakest December at -2.2%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: EHC has opened more than 2% away from the prior close in 113 of 3,268 sessions (3.5% of the time), with the largest gaps running +10.9% and -17.1%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

All figures computed from 3,269 daily closes between 2013-10-15 and 2026-10-14, split-adjusted, recomputed daily. Percentiles are against EHC's own 13-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of EHC's sector?

Encompass Health Corporation sits in the Health Care sector, currently ranked 2nd of 12 GICS sectors by relative-strength rotation score (leading).

Sector rank
#2 of 12
Sector state
Leading
Sector rotation score
82

Options Market

What is the options market pricing for EHC?

CallsPuts

For Encompass Health Corporation's nearest expiry (2026-10-16, 2 days out), open interest is call-heavy, a bullish tilt (put/call ratio of 0.12), with at-the-money implied volatility around 83.1%. The options market is pricing roughly a ±6.9% move by that expiry — a range of about $105.32–$120.84.

Put/call ratio (2026-10-16)
0.12
ATM implied volatility
83.1%
Total open interest
1,703
Expected move by 2026-10-16
±6.9% ($105.32–$120.84)

Analyst Rating Changes

Are analysts turning bullish or bearish on EHC?

TD Cowen most recently reiterated its rating on Encompass Health Corporation to Buy on Aug 10, 2026 with a price target of $140 (from $125). Over the last 90 days, coverage has run 0 upgrades against 0 downgrades, a net mixed lean.

Latest action
TD Cowen — Buy
90-day upgrades
0
90-day downgrades
0
Net rating momentum
0
DateFirmActionRatingPrice target
Aug 10, 2026TD CowenMaintainedBuy$125 → $140
Aug 7, 2026UBSMaintainedBuy$150 → $155
Aug 7, 2026Truist SecuritiesMaintainedBuy$140 → $150
Aug 6, 2026BarclaysMaintainedOverweight$140 → $144
May 28, 2026TD CowenInitiatedBuy$125
May 5, 2026BarclaysMaintainedOverweight$153 → $140
Feb 6, 2026BarclaysMaintainedOverweight$150 → $153
Oct 30, 2025BarclaysMaintainedOverweight$141 → $150
Oct 2, 2025UBSMaintainedBuy$140 → $150
Sep 16, 2025KeybancMaintainedOverweight$135 → $140
Sep 10, 2025B of A SecuritiesMaintainedBuy$145 → $160
Aug 14, 2025Truist SecuritiesMaintainedBuy$135 → $140

ETF holders

ETFs holding EHC

News Sentiment Analysis

Sentiment gathered from recent headlines

53/100
Strong NegativeNeutralStrong Positive
MIXED

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles
What did this article say?
Encompass Health (EHC) advanced 15.7% to $124.41 over the past six months, tracking the S&P 500’s 13.5% gain. The company’s free cash flow margin grew by 3.4 percentage points over five years, signaling stronger financial flexibility. With 161 specialized facilities across 37 states and Puerto Rico, EHC continues to serve patients recovering from strokes, hip fractures, and other conditions. The upward price movement reflects market confidence in the company’s operational performance and cash generation. No material guidance changes or adverse events were reported.
What did this article say?
Encompass Health (EHC) conducted its second‑quarter 2026 earnings conference call on October 13. The company released a full transcript detailing financial results, operational highlights, and management commentary. Executives discussed revenue trends, cost controls, and future guidance within the context of the healthcare services market. The call provided investors with a comprehensive view of EHC’s performance and strategic priorities for the remainder of the year.
What did this article say?
Encompass Health Corporation opened a 50‑bed inpatient rehabilitation hospital in Bangor, Maine, marking its first wholly owned facility in the state. The new center offers comprehensive therapy services for stroke, brain injury, spinal cord injury, amputation, and complex orthopedic patients, including 24‑hour nursing care and an in‑house dialysis unit. The expansion aligns with EHC’s strategy to add capacity in high‑demand markets and is expected to alleviate acute‑care hospital strain in the region. The opening supports the company’s strong discharge growth and capacity expansion plans for the second quarter of 2026.
What did this article say?
Encompass Health (EHC) opened its 50-bed Encompass Health Rehabilitation Hospital of Bangor in Bangor, Maine, accepting patients for inpatient rehabilitation services. The facility provides physical, occupational, and speech therapy for individuals recovering from strokes, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions. The expansion enhances EHC’s service footprint in the region and supports its strategy to grow outpatient and inpatient rehabilitation capacity.
What did this article say?
Encompass Health announced the opening of a 50-bed inpatient rehabilitation hospital in Bangor, Maine, on October 6, 2026. The facility, covering over 54,000 square feet, offers intensive therapy and 24‑hour nursing care for patients recovering from strokes, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions. The expansion is positioned to increase access to high‑quality rehabilitation services in the Northeast and address a regional demand for specialized care. The new hospital is expected to enhance EHC’s service footprint and support its growth strategy in the rehabilitation market.
What did this article say?
Encompass Health (EHC) delivered an average annual return of 16.1% over the past five years, outperforming the broader market by 4.12% on an annualized basis. The company’s market capitalization remains robust, reflecting investor confidence in its performance. This historical outperformance signals a solid track record but does not indicate a recent catalyst or significant change in outlook.
What did this article say?
Encompass Health Corp. announced that it will report its third‑quarter 2026 results after the market close on Wednesday, Oct. 28, 2026. The company will hold an investor conference call the following day at 10 a.m. ET, with dial‑in and webcast options available. The announcement provides the standard schedule for earnings disclosure and does not indicate any change to guidance or performance expectations.
What did this article say?
Encompass Health (NYSE:EHC) has outperformed the broader market over the past 15 years, achieving an annualized return of 16.76%. The company’s performance has outpaced the market by 3.42% per year. Its market capitalization currently stands at a substantial level, reflecting investor confidence. The data underscores EHC’s consistent growth and resilience in the healthcare services sector. This historical performance highlights the company’s ability to generate attractive returns for shareholders.
What did this article say?
Encompass Health Corp. opened a 50‑bed inpatient rehabilitation hospital in Lower Providence, Pennsylvania, as part of a new small‑format expansion strategy. The company also announced plans for a small‑format facility in Conroe and a 60‑bed replacement in The Woodlands, Texas, to upgrade and extend care for patients recovering from major illnesses and injuries. The new model links satellite sites to existing hospitals, aiming to increase capacity while bringing specialized, technology‑supported rehabilitation closer to patients in growing communities. This development supports the company’s capacity‑led growth narrative and may enhance its competitive positioning in the rehabilitation market.
What did this article say?
Encompass Health Corp. expanded its inpatient rehabilitation footprint with new projects in Texas and a recently opened facility in Pennsylvania. The company’s share price rose 22.37% over the past 90 days and 16.08% year‑to‑date, reflecting investor interest in the expansion. Despite the share price gains, the 1‑year total shareholder return fell 1.85%, while the 5‑year return reached 120.26%. The expansion suggests that EHC may be undervalued by up to 20% relative to its growth prospects.

Technical Analysis

Real-time indicators across multiple timeframes

86
BULLISH
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Institutional & Hedge Fund Ownership
25 tracked managers · $4.69B combined position · 12 adding, 13 trimming, 0 unchanged (latest 13F filings)
ManagerTrendShares Held% of Co.Position ValueFiled
Vanguard Group Inc▼ Sell10,130,02910.22%$1.08B2026-01-29
BlackRock, Inc.▼ Sell10,484,38510.57%$1.06B2026-08-07
Wellington Management Group LLP▼ Sell3,278,7393.31%$331.41M2026-08-14
Citadel Advisors LLC▲ Buy2,563,1042.58%$259.08M2026-09-02
AllianceBernstein L.P.▼ Sell2,471,7512.49%$239.09M2026-08-14
Two Sigma Investments, LP▲ Buy2,267,6682.29%$229.22M2026-08-14
Geode Capital Management, LLC▼ Sell1,890,7431.91%$191.16M2026-08-12
Goldman Sachs Group Inc▼ Sell1,550,7971.56%$156.75M2026-08-14
Invesco Ltd.▼ Sell1,161,1081.17%$117.36M2026-08-14
Norges Bank▼ Sell1,154,8641.16%$116.73M2026-08-12
William Blair Investment Management, LLC▲ Buy1,151,0851.16%$116.35M2026-08-12
Morgan Stanley▲ Buy1,146,8731.16%$115.93M2026-08-13
JPMorgan Chase & Co▼ Sell1,133,5611.14%$114.84M2026-08-12
Northern Trust Corp▲ Buy970,6840.98%$98.12M2026-08-13
Capital Research Global Investors▲ Buy872,5400.88%$88.20M2026-08-12
Millennium Management LLC▲ Buy805,7170.81%$81.44M2026-08-14
Bank of America Corp▼ Sell788,0900.79%$79.66M2026-08-14
AQR Capital Management LLC▲ Buy561,8880.57%$56.58M2026-08-14
D. E. Shaw & Co., Inc.▼ Sell384,5950.39%$38.87M2026-08-14
Balyasny Asset Management L.P.▲ Buy296,9390.30%$30.01M2026-08-14
Gotham Asset Management, LLC▲ Buy260,8980.26%$26.37M2026-08-14
Wells Fargo & Company▲ Buy197,7600.20%$19.99M2026-08-14
Renaissance Technologies LLC▼ Sell174,5000.18%$17.64M2026-08-13
FMR LLC (Fidelity)▼ Sell152,7830.15%$15.44M2026-08-13
Davidson Kempner Capital Management LP▲ Buy151,2670.15%$15.29M2026-08-14
Q2 2026 flow:3.61M sh bought ($365.14M)4.04M sh sold ($407.97M)net -429.7K sh (−$42.83M)
Congressional Trading Activity
2 disclosed trades · ~$16.0K est. traded value · 1 buys, 1 sells
MemberChamberStateTypeAmountTradedFiled
Lisa McClainHouseMI09▼ Sell$1K - $15K2025-10-312025-11-21
Lisa McClainHouseMI09▲ Buy$1K - $15K2025-10-302025-11-21