Zacks Research Issues Pessimistic Estimate for EHC Earnings

Encompass Health Co. (NYSE:EHC) – Zacks Research decreased their Q4 2025 earnings estimates for Encompass Health in a research note issued to investors on Monday, November 11th. Zacks Research analyst Z. Masood now anticipates that the company will earn $1.15 per share for the quarter, down from their previous forecast of $1.18. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Encompass Health’s Q1 2026 earnings at $1.35 EPS and FY2026 earnings at $5.31 EPS.

A number of other brokerages have also recently weighed in on EHC. KeyCorp lifted their price target on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 29th. Royal Bank of Canada increased their target price on Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Stephens reiterated an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a report on Tuesday, August 6th. UBS Group raised their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, September 25th. Finally, Barclays increased their target price on Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $107.11.

Encompass Health Stock Performance

Shares of EHC stock opened at $101.19 on Wednesday. The stock has a market cap of $10.19 billion, a PE ratio of 24.44, a price-to-earnings-growth ratio of 1.36 and a beta of 0.88. The stock has a 50-day moving average of $96.08 and a 200-day moving average of $90.07. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.04. Encompass Health has a one year low of $63.59 and a one year high of $104.55.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Monday, October 28th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.09. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm’s revenue was up 11.9% on a year-over-year basis. During the same period last year, the company earned $0.86 EPS.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds have recently bought and sold shares of EHC. UMB Bank n.a. raised its holdings in Encompass Health by 387.7% in the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock valued at $31,000 after acquiring an additional 252 shares in the last quarter. V Square Quantitative Management LLC lifted its holdings in shares of Encompass Health by 53.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after acquiring an additional 140 shares during the period. Avior Wealth Management LLC acquired a new stake in shares of Encompass Health during the 3rd quarter worth approximately $40,000. Oakworth Capital Inc. acquired a new position in Encompass Health during the second quarter valued at approximately $40,000. Finally, Benjamin F. Edwards & Company Inc. lifted its stake in Encompass Health by 58.9% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after purchasing an additional 198 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

Encompass Health declared that its Board of Directors has initiated a stock buyback plan on Wednesday, July 24th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Encompass Health Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 0.67%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s payout ratio is presently 16.43%.

Encompass Health Company Profile

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.