Encompass Health (EHC) has demonstrated strong financial performance, with revenues of $1.35 billion and a net profit of $108.2 million in its latest quarterly report. The company has shown consistent growth in discharge volumes and revenue per discharge, driven by its focus on inpatient rehabilitation services. However, insider sentiment has turned negative, with increased selling activity among corporate insiders.

Analyst Sentiment:

Analysts maintain a Strong Buy consensus on EHC, with an average price target of $117.80, indicating a potential upside of approximately 20% from current levels. Recent ratings from firms like Truist Financial and Barclays reinforce this positive outlook, citing strong operational performance and growth prospects.

Valuation Metrics:

EHC's valuation metrics suggest the stock is reasonably priced relative to its growth prospects. The company's forward P/E ratio is in line with industry averages, and its strong free cash flow generation supports its expansion plans.

Technical Analysis:

The stock has been trading in a bullish trend, with support levels around $95 and resistance near $104. Recent price action suggests continued upward momentum, supported by positive earnings and analyst sentiment.

Conclusion:

Based on strong analyst consensus, solid financial performance, and positive technical indicators, buying EHC stock is recommended. The company's expansion strategy and favorable industry dynamics further support this outlook.

What is price prediction 2025 for EHC Stock?

Price Prediction for EHC Stock in 2025

Encompass Health (EHC) is expected to reach a price target of $116 by the end of 2025. This prediction is supported by strong financial performance, including a 12.7% revenue increase and a 13.6% rise in adjusted EBITDA. The company's expansion into new markets, particularly in Florida, and its focus on serving Medicare beneficiaries position it for continued growth. Analysts maintain a Strong Buy consensus with an average price target of $117.80, indicating a potential 18% upside.

What is surpport and resistant level for EHC Stock?

The S1 support level for EHC Stock is $93.86 ,The R1 resistant level for EHC Stock is $100.17.

What is the current price of EHC Stock?

As of the end of day on 2025-03-17, the price of EHC Stock was $95.89.

What is the target price of EHC Stock?

The target price for EHC Stock according to analyst rating is 117.00, with the highest price target at 125.00 and the lowest at 110.00. Analysts have a Strong Buy rating on EHC Stock overall.

What is the market cap of Encompass Health Corp?

The market cap of EHC is $9.7B.

Is Encompass Health Corp (EHC) overvalued?

Analysis and Insights

EHC appears overvalued based on high valuation multiples and insider selling.

Valuation Metrics: EHC's P/E ratio of 22.76 (Q3 2024) and EV/EBITDA of 11.6 (Q3 2024) are elevated compared to industry averages, suggesting potential overvaluation.
Insider Sentiment: Increased insider selling activity indicates negative sentiment among company insiders, which may signal overvaluation concerns.
Financial Performance: While EHC reported strong Q4 2024 earnings with revenue growth of 12.7% and net profit of $108.2 million, the stock's high multiples may not fully justify its current price.
Technical Indicators: The stock's neutral RSI of 50 and its position near key moving averages suggest limited upside potential in the near term.
Analyst Sentiment: Despite a Strong Buy consensus and a $117.80 average price target, the stock's high valuation and insider selling activity raise caution flags.

What is Encompass Health Corp (EHC)'s business?

Encompass Health Corporation is an owner and operator of inpatient rehabilitation hospitals in the United States. The Company provides specialized rehabilitative treatment on an inpatient basis. It operates hospitals in 37 states and Puerto Rico, with concentrations in Florida and Texas. It operates 161 inpatient rehabilitation hospitals. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver comprehensive patient care services. The Company provides care to patients who suffer from cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures and a variety of debilitating neurological conditions. Its hospitals also treat patients with or recovering from the COVID-19 virus. Its hospitals have settings for treating the debilitating effects of the COVID-19 virus, such as significant muscle weakness, cognitive impairments, shortness of breath with activity and malnutrition.

What is price prediction 2030 for EHC Stock?

Encompass Health (EHC) stock is predicted to reach $140 by 2030, driven by strong revenue growth and capacity expansion. The company's Q4 2024 results showed a 12.7% revenue increase and a 23.2% rise in adjusted EPS, with plans to add new hospitals and beds. Analysts maintain a Buy rating with a $118 price target, indicating confidence in its growth potential.