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What 5 Analyst Ratings Have To Say About Encompass Health

Benzinga·10/02/2025 12:02:07
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Analysts' ratings for Encompass Health (NYSE:EHC) over the last quarter vary from bullish to bearish, as provided by 5 analysts.

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 4 1 0 0 0
Last 30D 1 0 0 0 0
1M Ago 1 1 0 0 0
2M Ago 2 0 0 0 0
3M Ago 0 0 0 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $146.0, with a high estimate of $160.00 and a low estimate of $140.00. This upward trend is apparent, with the current average reflecting a 6.57% increase from the previous average price target of $137.00.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Encompass Health. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
A.J. Rice UBS Raises Buy $150.00 $140.00
Matthew Gillmor Keybanc Raises Overweight $140.00 $135.00
Kevin Fischbeck B of A Securities Raises Buy $160.00 $145.00
David Macdonald Truist Securities Raises Buy $140.00 $135.00
Andrew Mok UBS Raises Buy $140.00 $130.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Encompass Health. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Encompass Health compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Encompass Health's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Encompass Health analyst ratings.

Get to Know Encompass Health Better

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.

A Deep Dive into Encompass Health's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining Encompass Health's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.03% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 9.75%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Encompass Health's ROE stands out, surpassing industry averages. With an impressive ROE of 6.4%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Encompass Health's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.12% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Encompass Health's debt-to-equity ratio is below the industry average at 1.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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