Stock Price & Analysis

Based on the provided data and current market conditions, here's my analysis for EHC stock:

Technical Analysis

The stock is showing positive momentum with a current price of $99.40, up 0.78% in the latest trading session. The stock is trading above its 20-day moving average of $97.19, indicating a bullish short-term trend. The RSI at 57.04 suggests moderate upward momentum without being overbought.

Fundamental Strength

Encompass Health demonstrated strong performance in Q4 2024:

• Revenue increased 12.7% to $1.4 billion
• Adjusted EBITDA grew 13.6% to $289.6 million
• Total discharge growth of 7.8%
• Same-store discharge growth of 5.8%

Growth Catalysts

• Expanding capacity with 7 new hospitals and 100 bed additions planned for 2025
• Strong Medicare Advantage growth with discharge increase of 14.7% in Q4
• Favorable demographic trends with growing elderly population
• Strategic expansion in Florida market with 5 new hospitals opening in 2025

Recent Analyst Actions

• KeyBanc raised price target to $120 from $117, maintaining Buy rating
• Barclays maintained Buy rating with $118 price target
• RBC Capital reiterated Buy rating with $110 price target

Recommendation Given the strong fundamentals, consistent execution, and positive analyst sentiment, EHC presents a buying opportunity at current levels. The company's expansion plans and growing Medicare Advantage business provide clear growth catalysts, while its strong cash flow generation supports continued investments in growth.

Based on the provided data and recent market analysis, here is the price prediction for EHC stock in 2025:

EHC stock is expected to reach $117-120 by end of 2025, driven by strong operational momentum, continued Medicare Advantage growth, and successful execution of capacity expansion plans particularly in Florida. The company's Q4 2024 performance showing 12.7% revenue growth and 13.6% EBITDA growth demonstrates sustained business strength. Multiple analysts including Barclays and Truist Financial maintain "Buy" ratings with price targets around $118, suggesting approximately 19% upside potential from current levels.

The S1 support level for EHC Stock is $96.04 ,The R1 resistant level for EHC Stock is $102.77.

As of the end of day on 2025-02-11, the price of EHC Stock was $99.4.

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

The market cap of EHC is $10.0B.

Based on the provided data and recent market activity, here's a comprehensive analysis of whether EHC is overvalued:

Valuation Analysis: EHC's current P/E ratio of 20.71 and EV/EBITDA of 10.74 in Q4 2024 show moderate valuation levels compared to historical averages.

Growth & Performance: The company demonstrated strong Q4 2024 performance with revenue increasing 12.7% and adjusted EBITDA rising 13.6%. Total discharge growth reached 7.8%, indicating robust operational execution.

Analyst Consensus: Recent analyst ratings strongly support the stock's value proposition, with multiple firms raising price targets. Barclays recently increased their target to $118 from $116, suggesting approximately 18.2% upside potential.

Market Position: EHC maintains a strong competitive position with expansion plans, including opening 7 new hospitals and adding 100 beds in 2025. The company's strategic focus on underserved markets, particularly in Florida, suggests continued growth potential.

Based on these factors, EHC is NOT overvalued at current levels, supported by strong fundamentals, growth trajectory, and analyst confidence.

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.

Based on the provided data and recent earnings reports, here's a price prediction for EHC stock in 2030:

EHC stock is projected to reach $165-175 by 2030, driven by strong execution of expansion plans targeting $5.8-5.9B revenue by 2025 and consistent growth in Medicare Advantage patient volumes which grew 14.7% in Q4 2024. The company's aggressive capacity expansion with eight new hospitals planned for 2025 and strong analyst consensus with a price target of $117.67 (19.34% upside from current levels) supports this long-term bullish outlook.

EHC has a total of 22356 employees.