Zacks Research Analysts Lower Earnings Estimates for EHC

Encompass Health Co. (NYSE:EHC) – Zacks Research lowered their Q4 2025 earnings per share estimates for Encompass Health in a research note issued on Monday, November 11th. Zacks Research analyst Z. Masood now expects that the company will post earnings per share of $1.15 for the quarter, down from their prior estimate of $1.18. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Encompass Health’s Q1 2026 earnings at $1.35 EPS and FY2026 earnings at $5.31 EPS.

A number of other research analysts also recently commented on the company. UBS Group upped their price objective on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Barclays boosted their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Truist Financial reiterated a “buy” rating and set a $116.00 price objective (up from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Stephens reiterated an “overweight” rating and issued a $105.00 target price on shares of Encompass Health in a research report on Tuesday, August 6th. Finally, KeyCorp boosted their target price on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. Nine analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $107.11.

Encompass Health Price Performance

EHC opened at $102.62 on Wednesday. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.88. The company’s 50-day moving average price is $95.90 and its 200 day moving average price is $89.98. Encompass Health has a fifty-two week low of $63.01 and a fifty-two week high of $104.55. The firm has a market cap of $10.34 billion, a price-to-earnings ratio of 24.79, a price-to-earnings-growth ratio of 1.37 and a beta of 0.88.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Monday, October 28th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.09. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.33 billion. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same period last year, the business posted $0.86 earnings per share.

Encompass Health announced that its Board of Directors has approved a stock buyback plan on Wednesday, July 24th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 5.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Encompass Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be issued a $0.17 dividend. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.66%. Encompass Health’s dividend payout ratio is 16.43%.

Institutional Trading of Encompass Health

Institutional investors have recently made changes to their positions in the stock. UMB Bank n.a. lifted its position in Encompass Health by 387.7% in the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after buying an additional 252 shares in the last quarter. V Square Quantitative Management LLC raised its holdings in shares of Encompass Health by 53.0% during the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after acquiring an additional 140 shares in the last quarter. Oakworth Capital Inc. purchased a new stake in shares of Encompass Health during the second quarter worth $40,000. Avior Wealth Management LLC purchased a new position in Encompass Health in the third quarter valued at about $40,000. Finally, Benjamin F. Edwards & Company Inc. increased its position in Encompass Health by 58.9% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after purchasing an additional 198 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.