Zacks Research Predicts Weaker Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC) – Stock analysts at Zacks Research dropped their Q4 2025 earnings per share (EPS) estimates for Encompass Health in a research report issued on Monday, November 11th. Zacks Research analyst Z. Masood now anticipates 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.

Other equities research analysts have also recently issued research reports about the company. Royal Bank of Canada increased their target price on Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a report on Wednesday, October 30th. UBS Group boosted their target price on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research note on Wednesday, September 25th. Barclays raised their price target on shares of Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. KeyCorp upped their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Finally, Truist Financial reaffirmed a “buy” rating and issued a $116.00 target price (up from $108.00) on shares of Encompass Health in a research note on Wednesday, October 30th. Nine analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $107.11.

Encompass Health Trading Down 0.6 %

Shares of EHC stock opened at $102.62 on Wednesday. The stock has a market cap of $10.34 billion, a P/E ratio of 24.79, a P/E/G ratio of 1.37 and a beta of 0.88. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.88. Encompass Health has a fifty-two week low of $63.01 and a fifty-two week high of $104.55. The business has a fifty day simple moving average of $95.90 and a 200-day simple moving average of $89.98.

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

Institutional Inflows and Outflows

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

Encompass Health declared that its Board of Directors has approved a share repurchase plan on Wednesday, July 24th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually a sign 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. Investors of record on Thursday, January 2nd will be issued a dividend of $0.17 per share. The ex-dividend date is Thursday, January 2nd. This represents a $0.68 annualized dividend and a dividend yield of 0.66%. Encompass Health’s payout ratio is 16.43%.

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.