EHC

Upcoming Dividend Payments: Cardinal Health, Agilent Technologies, and Encompass Health will trade ex-dividend on April 1, 2025, with respective quarterly dividends of $0.5056, $0.248, and $0.17, leading to expected price adjustments in their stock values.

Dividend Yield Insights: Current estimated annual yields are 1.48% for Cardinal Health, 0.83% for Agilent Technologies, and 0.67% for Encompass Health, indicating the importance of historical dividend stability for future expectations.

Aging Population Impact: Mizuho reports that the aging population will significantly increase consumer spending, particularly among those aged 75 and older, with projections showing spending could rise from $900 billion now to $2.2 trillion by 2035, benefiting companies in healthcare, home improvement, and food delivery sectors.

Top Stock Picks: Analysts have identified several stocks poised to benefit from this demographic shift, including Encompass Health for rehabilitation services, Glaukos for glaucoma treatments, Home Depot for home improvements, Welltower and Ventas for senior housing, DoorDash for food delivery, and Simply Good Foods for nutrition products targeting older consumers.

Put Contract Analysis: The $95.00 put contract for EHC offers a premium of 55 cents, allowing investors to potentially buy shares at a lower cost basis of $94.45, with a 68% chance of the contract expiring worthless, yielding a 0.58% return on cash commitment.

Call Contract Strategy: The $100.00 call contract has a bid of $4.00, providing a potential total return of 5.21% if exercised, while also presenting a 48% chance of expiring worthless, which could yield a 4.05% additional return if the investor retains their shares.

New Rehabilitation Hospital Opening: Encompass Health and Piedmont have opened the Rehabilitation Hospital of Athens, a 40-bed facility aimed at helping patients recover from various conditions including strokes and spinal cord injuries, providing intensive therapy and specialized care.

Partnership Expansion: This hospital is part of a joint venture that includes multiple rehabilitation hospitals across Georgia and Alabama, with plans for further expansion in Loganville, Georgia, emphasizing quality care close to home.

Encompass Health Conference Participation: Encompass Health Corp. will participate in the Barclays Global Healthcare Conference from March 11-13, 2025, with a live webcast of their presentation scheduled for March 11 at 8:30 a.m. ET.

Company Overview: Encompass Health is the largest operator of inpatient rehabilitation hospitals in the U.S., with 166 facilities across 38 states and Puerto Rico, recognized for its high-quality rehabilitative care and ranked among Fortune's Most Admired Companies.

Analyst Ratings and Price Targets: David S Macdonald from Truist Financial maintains a Buy rating on Encompass Health (EHC) with a price target of $116.00, while the overall analyst consensus suggests a Strong Buy with an average price target of $117.80, indicating potential upside.

Financial Performance and Insider Activity: Encompass Health reported strong quarterly earnings with revenues of $1.35 billion and a net profit of $108.2 million, but insider sentiment has turned negative as more insiders have sold shares recently.

Analyst Ratings on Healthcare Stocks: Analysts from Leerink Partners have expressed bullish sentiments on Equillium, Zoetis, and Encompass Health, with all three companies receiving Buy ratings and positive price targets indicating potential upside.

Performance of Analysts: The analysts covering these stocks have varying success rates and average returns, with notable mentions including Thomas Smith for Equillium, Daniel Clark for Zoetis, and Whit Mayo for Encompass Health, all contributing to a generally optimistic outlook in the healthcare sector.

Earnings Performance: Encompass Health Corp reported strong fourth-quarter 2024 earnings with a 12.7% revenue increase and significant growth in adjusted EBITDA, EPS, and free cash flow, while also highlighting challenges in access to inpatient rehabilitation services for Medicare beneficiaries.

Expansion Plans and Market Dynamics: The company is actively expanding its capacity by opening new hospitals and increasing bed counts, particularly in Florida, while addressing misconceptions about rehabilitation services and focusing on improving patient outcomes and operational efficiencies amidst rising healthcare costs.

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Market Performance: Wall Street experienced a decline due to rising inflation fears and trade tariff announcements, with major indices like the S&P 500 and Nasdaq 100 dropping by 0.6% and 0.9%, respectively.

Stock Movements: Uber's stock surged by 9.5% following a significant investment announcement, while other companies like Amazon and Illumina saw declines of 3.78% and 8.29%, respectively.

Financial Performance: Encompass Health Corporation reported a strong Q4 2024, with revenue up 12.7% to $1.4 billion, adjusted EBITDA rising 13.6%, and adjusted EPS increasing by 23.2%. The company plans to expand capacity significantly in 2025, adding eight new facilities and 340 beds.

Outlook and Challenges: While the outlook for 2025 remains positive with expected revenue between $5.8 billion and $5.9 billion, management expressed concerns over elevated group medical costs and pre-opening expenses related to new hospitals, which could impact profitability.

Analyst Ratings: David S Macdonald from Truist Financial maintains a Buy rating on Encompass Health (EHC), with an analyst consensus of Strong Buy and a price target of $117.67, indicating a potential upside of 19.34% from current levels.

Company Performance: Encompass Health reported strong Q4 financial results, with adjusted EPS of $1.17 surpassing the consensus of $1.02, and forecasts FY25 adjusted EPS between $4.67 and $4.96, aligning closely with the consensus estimate of $4.77.

Barclays Price Target Update: Barclays has increased its price target on Encompass Health (EHC) to $118 from $116, maintaining an Overweight rating following the company's strong Q4 report that aligns with market expectations.

Financial Performance Highlights: Encompass Health reported a Q4 adjusted EPS of $1.17, exceeding consensus estimates, and provided FY25 adjusted EPS guidance between $4.67 and $4.96, indicating robust operational momentum.

Earnings Performance: Encompass Health (EHC) reported quarterly earnings of $1.17 per share, exceeding estimates and showing a year-over-year increase from $0.95. The company also achieved revenues of $1.41 billion, surpassing expectations and marking a significant rise from the previous year's $1.25 billion.

Future Outlook: Despite recent strong performance, the earnings outlook for Encompass Health is currently unfavorable, resulting in a Zacks Rank #4 (Sell). Investors are advised to monitor upcoming earnings estimate revisions as they could influence stock performance moving forward.

Market Overview: Wall Street experienced a mixed session with the S&P 500 and Nasdaq 100 rising slightly, while the Dow Jones fell. Financial stocks led gains following the Fed's announcement on bank stress tests, with notable increases in shares of major banks and companies like Eli Lilly and Philip Morris.

Commodities and Bitcoin: Oil prices fluctuated amid geopolitical speculation, while gold prices dropped after reaching record highs. Bitcoin remained stable just below $97,000 as investors await a key jobs report.

Financial Performance: Encompass Health Corporation reported a 12.7% increase in net operating revenue for Q4 2024, reaching $1.405 billion, driven by a 7.8% growth in discharges and a 4.2% rise in net patient revenue per discharge. Adjusted EBITDA also rose by 13.6% to $289.6 million.

2025 Guidance: The company provided guidance for 2025, projecting net operating revenue between $5.8 billion and $5.9 billion, with adjusted EBITDA expected to be between $1.16 billion and $1.20 billion, indicating continued optimism about its growth trajectory.

Encompass Health Recognition: Encompass Health Corp. has been named one of Fortune's World's Most Admired Companies for 2025, marking the fifth consecutive year it has received this honor, reflecting its commitment to exceptional patient care and trust-building with stakeholders.

Company Overview: As the largest owner and operator of inpatient rehabilitation hospitals in the U.S., Encompass Health operates 166 hospitals across 38 states and Puerto Rico, focusing on high-quality rehabilitative care using advanced technology and innovative treatments.

Encompass Health Recognition: Encompass Health Corp. has been named to Fortune's World's Most Admired Companies list for 2025, marking five consecutive years of recognition for its exceptional patient care and corporate reputation.

Company Overview: As the largest operator of inpatient rehabilitation hospitals in the U.S., Encompass Health operates 166 hospitals across 38 states and Puerto Rico, focusing on high-quality rehabilitative care and innovative treatments for patients recovering from major injuries or illnesses.

Lobbying Disclosure: ENCOMPASS HEALTH CORPORATION disclosed $410,000 in lobbying expenditures for Q3 2024, focusing on Medicare-related regulatory proposals and standards for inpatient rehabilitation hospitals.

Insider Trading Activity: In the past six months, EHC insiders have made two stock sales with no purchases, while institutional investors showed mixed activity, with 210 adding shares and 238 reducing their positions.

Lobbying Disclosure: Encompass Health Corporation disclosed $10,000 in lobbying expenditures for Q4 2024, focusing on various healthcare legislative issues including Medicare and rehabilitation services.

Insider Trading Activity: In the past six months, EHC insiders have sold stock twice without any purchases, while institutional investors showed mixed activity with 210 adding shares and 239 reducing their positions.