Zacks Investment Research·5d ago
Here's Why Encompass Health (EHC) is a Strong Growth StockThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Encompass Health is executing a successful pure-play inpatient rehabilitation strategy, evidenced by accelerating revenue growth (9.6% YoY in Q2 2026) and operating margin expansion from 15.5% in Q3 2024 to 19.0% in Q1 2026. The company's robust cash conversio...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 9.6% YoY in Q2 2026, with operating margin expanding from 15.5% in Q3 2024 to 19.0% in Q1 2026, reflecting strong operating leverage.
The intrinsic value for Encompass Health Corp is estimated at $111.33, suggesting the stock is undervalued by 11% based on the Base Case analysis.
Encompass Health reported a 7.15% rise in premarket trading following its first-quarter 2026 earnings, indicating strong financial performance.
The company confirmed a quarterly cash dividend of $0.19 per share, demonstrating its commitment to returning value to shareholders.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | $1.55+4.7% vs $1.48 | $1.6B+1.7% vs $1.6B |
Q2 2026 Apr 30, 2026 | $1.60+6.0% vs $1.51 | $1.6B+1.2% vs $1.6B |
Q1 2026 Feb 5, 2026 | $1.46+13.2% vs $1.29 | $1.5B+0.3% vs $1.5B |
Q4 2025 Oct 29, 2025 | $1.23+3.4% vs $1.19 | $1.5B-0.2% vs $1.5B |
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
BIRMINGHAM, Ala. and EAGLEVILLE, Pa.
Engineers Gate Manager LP lowered its holdings in Encompass Health Corporation (NYSE: EHC) by 38.5% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 26,953 shares of the company's stock after selling 16,849 shares during the quarter. Engineers Gate Manager
Benchmark EHC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Encompass Health Corporation (EHC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $122.21 | $12.12B | 22.06 | 10.46% | 9.54% | 18.49% | 0.57% | |
| $82.65 | $1.26B | 58.20 | 16.33% | 0.32% | 0.29% | — | |
| $16.51 | $2.05B | 13.99 | 5.12% | 2.42% | 6.55% | — | |
| $175.46 | $10.23B | 30.04 | 18.72% | 6.9% | 16.51% | — | |
| $28.51 | $2.65B | -2.34 | 5.04% | -33.44% | -46.01% | — | |
| $181.39 | $10.98B | 7.85 | 9.71% | 8.42% | 20.37% | — |
Encompass Health Corporation (EHC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Encompass Health Corporation (EHC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 13, 2026·SEC
Aug 5, 2026·SEC
Jun 1, 2026·SEC
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Encompass Health Corporation (EHC) stock FAQ — growth, dividends, profitability & financials explained
Encompass Health Corporation (EHC) reported $6.21B in revenue for fiscal year 2025. This represents a 134% increase from $2.65B in 1996.
Encompass Health Corporation (EHC) grew revenue by 10.5% over the past year. This is steady growth.
Yes, Encompass Health Corporation (EHC) is profitable, generating $621.0M in net income for fiscal year 2025 (9.5% net margin).
Yes, Encompass Health Corporation (EHC) pays a dividend with a yield of 0.57%. This makes it attractive for income-focused investors.
Encompass Health Corporation (EHC) has a return on equity (ROE) of 18.5%. This is reasonable for most industries.
Encompass Health Corporation (EHC) generated $413.4M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
