Analyst Expectations For Encompass Health's Future

Encompass Health (NYSE:EHC) has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	2	2	0	0	0
Last 30D	1	0	0	0	0
1M Ago	1	0	0	0	0
2M Ago	0	0	0	0	0
3M Ago	0	2	0	0	0

In the assessment of 12-month price targets, analysts unveil insights for Encompass Health, presenting an average target of $137.5, a high estimate of $140.00, and a low estimate of $135.00. Surpassing the previous average price target of $130.50, the current average has increased by 5.36%.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Encompass Health by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
David Macdonald	Truist Securities	Raises	Buy	$140.00	$135.00
Andrew Mok	UBS	Raises	Buy	$140.00	$130.00
Raj Kumar	Stephens & Co.	Maintains	Overweight	$135.00	$135.00
Paul Knight	Keybanc	Raises	Overweight	$135.00	$122.00

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Encompass Health. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Encompass Health compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Encompass Health's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Encompass Health's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Encompass Health analyst ratings.

About Encompass Health

Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas.

Key Indicators: Encompass Health's Financial Health

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3M period, Encompass Health showcased positive performance, achieving a revenue growth rate of 12.03% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Encompass Health's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.75% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.4%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Encompass Health's ROA excels beyond industry benchmarks, reaching 2.12%. This signifies efficient management of assets and strong financial health.

Debt Management: Encompass Health's debt-to-equity ratio is below the industry average. With a ratio of 1.18, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.