Should I Buy EHC? EHC 2026 Analysis

Should You Buy Encompass Health Corp (EHC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

94.580

1 Day change

-1.17%

52 Week Range

127.990

Analysis Updated At

2026/01/28

Buy now for a beginner, long-term investor: EHC is pulling back into a key support zone (~$95) while fundamentals are growing strongly (2025/Q3 revenue +9.36% YoY, EPS +17.14% YoY). Technicals are bearish but showing signs of selling pressure easing, which makes the current level acceptable for an impatient long-term entry.

Technical Analysis

Price/Trend: Short-, medium-, and long-term moving averages are bearish (SMA_200 > SMA_20 > SMA_5), confirming a broader downtrend. Momentum: MACD histogram is negative (-0.443) but contracting, suggesting downside momentum is weakening (selling pressure may be fading). RSI(6) ~25.5 indicates the stock is near oversold conditions despite the provided 'neutral' label—this often coincides with bounce potential rather than fresh breakdowns. Levels: Current price ~$95.7 sits just above S1 ~$95.03; a break below risks a move toward S2 ~$92.75. Overhead resistance/pivot is ~$98.71; reclaiming it would improve near-term trend. Probabilistic pattern read: Similar-pattern stats lean slightly negative over 1D/1W/1M, so expect choppiness, but the proximity to support makes the risk/reward reasonable for long-term buyers. **Intellectia Proprietary Trading Signals** - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock today.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options sentiment (from provided chain snapshot): Open interest put/call ratio at 1.21 shows more puts than calls outstanding (mildly defensive positioning). However, today’s options volume is extremely low (calls 4, puts 0; put/call volume ratio 0.0), so the session’s flow is not very informative. Implied volatility (30D) ~27.47 vs historical vol ~25.69 suggests modestly elevated option pricing; IV percentile ~58.8 indicates mid-range relative richness rather than extreme fear or complacency.

Technical Summary

Sell

Buy

Positive Catalysts

2) Event catalyst ahead: QDEC 2025 earnings on 2026-02-05 after hours (street EPS est. ~1.29) can re-rate shares if growth persists. 3) Wall Street support: Barclays reiterated Overweight and raised its price target (bullish signal from a major broker).

Neutral/Negative Catalysts

1) Technical trend remains bearish (SMA_200 > SMA_20 > SMA_5) and price is still below the pivot (~$98.7), so rallies may face resistance. 2) Options open-interest positioning is somewhat defensive (OI put/call 1.21). 3) No supportive near-term news flow in the past week; the stock may drift until the next catalyst (earnings). 4) Hedge funds/insiders show neutral activity—no strong 'smart money' confirmation in the provided data.

Financial Performance

Latest provided quarter: 2025/Q3. Revenue grew to $1.4775B (+9.36% YoY), net income rose to $126.2M (+17.40% YoY), and EPS increased to $1.23 (+17.14% YoY). Margins also improved slightly (gross margin ~90.05, +0.38% YoY). Overall, profitability is growing faster than revenue, which is a constructive long-term signal.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend (provided): Barclays (2025-10-30) raised price target to $150 from $141 and maintained an Overweight rating after a modest Q4 beat commentary. Wall Street pros view: Upside case is improving earnings power and continued growth (supports higher targets). Cons view: current chart weakness/downtrend implies timing risk, and without broader analyst/valuation context provided here, the bull case is more fundamentals-driven than multiple-expansion-driven. Influential/political trading check: No recent congress trading data available; hedge fund and insider trends are neutral in the last quarter/month, respectively.

5 Analyst Rating

Wall Street analysts forecast EHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EHC is 143.33 USD with a low forecast of 140 USD and a high forecast of 150 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 95.700

Low

140

Averages

143.33

High

150

Current: 95.700

Low

140

Averages

143.33

High

150

Barclays

Andrew Mok

Overweight

maintain

$141 -> $150

AI Analysis

2025-10-30

Reason

Barclays

Andrew Mok

Price Target

$141 -> $150

AI Analysis

2025-10-30

maintain

Overweight

Reason

Barclays analyst Andrew Mok raised the firm's price target on Encompass Health to $150 from $141 and keeps an Overweight rating on the shares. The company reported a modest Q4 beat, the analyst tells investors in a research note.

KeyBanc

Overweight

maintain

$135 -> $140

2025-09-16

Reason

KeyBanc

Price Target

$135 -> $140

2025-09-16

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Encompass Health to $140 from $135 and keeps an Overweight rating on the shares. The firm recently spent time with Encompass Health's management team at the company's Birmingham headquarters and hosted a group call with investors. KeyBanc believes Encompass Health is well positioned to sustain attractive growth, given IRF supply-demand dynamics and visible market share opportunities. Upside drivers from the first half of the year seem sustainable to us, including the favorable mix of VA patients. Policy backdrop for IRFs remains benign. Leverage and free cash flow may support an accelerated pace of buybacks.

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EHC Should I Buy

EHC Should I Buy

Should You Buy Encompass Health Corp (EHC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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