, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced that its board of directors approved an increase of $0.02 in the Company's quarterly dividend and declared a quarterly cash dividend on its common stock of $0.21 per share, payable on Oct. 15, 2026, to holders of record on Oct. 1, 2026.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts, such as the timing and amounts of dividends, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking statements speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, a decision by the board of directors to change the dividend rate in the future; the legal, regulatory and administrative developments that occur at the federal, state and local levels; general conditions in the economy and capital markets, including any instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will report results for its second quarter ended June 30, 2026, after the market closes on Wednesday, Aug. 5, 2026. The Company will host an investor conference call at 10 a.m. ET on Thursday, Aug. 6, 2026, to discuss its results.
The conference call may be accessed by dialing 833-354-6854 and providing the conference ID EHCQ226. International callers should dial 785-838-9343 and provide the same conference ID. Please call approximately 10 minutes before the start of the call to ensure you are connected.
A live webcast of the conference call and an online replay of the conference call can be found on the Company's investor website at investor.encompasshealth.com.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.91; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.
Key Takeaways EHC's growth story now hinges on expanding capacity efficiently to capture rising patient referrals.EHC opened a 49-bed hospital and added 44 beds in Q1 2026, with more expansions planned this year.EHC lifted 2026 adjusted EPS guidance after Q1 revenues rose 9% and adjusted EBITDA increased 11.2%. Encompass Health Corporation (EHC - Free Report) has reached an interesting point in its growth story. Demand is no longer the primary metric to watch. Supported by an aging U.S. population, the need for inpatient rehabilitation services continues to grow. Now the key question hinges on scale: Can EHC expand capacity fast enough to meet that demand?
Many of its hospitals are currently operating at high occupancy levels. To address this, management has changed its strategy. Instead of waiting for facilities to reach near-full capacity, it is now launching expansion projects earlier. This proactive approach brings new beds online before capacity becomes a constraint, helping the company capture more patient referrals.
We are already seeing this plan in action. In the first quarter of 2026, EHC opened a new 49-bed hospital in South Carolina and added 44 beds to existing locations. By the end of the year, it plans to open eight more hospitals and add about 175 beds. EHC has 11 additional hospitals in its development pipeline and plans to introduce a smaller hospital design in 2027 to better serve crowded, fast-growing markets.
EHC's expansion strategy is beginning to translate into stronger financial performance. First-quarter 2026 revenues rose 9% and adjusted EBITDA increased 11.2%, prompting management to raise its 2026 adjusted EPS guidance to $5.89-$6.11 from $5.81-$6.10. The investment thesis now depends less on demand and more on execution. Successfully bringing new capacity online while maintaining operational efficiency could support sustained earnings growth over the long run.
How Are EHC's Peers Positioned?Encompass Health is not alone in expanding capacity to meet rising healthcare demand. Medical sector peers like Select Medical Holdings Corporation (SEM - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) are also investing in new facilities and hospital expansion to support long-term growth.
Select Medical is also expanding its inpatient rehabilitation footprint through new hospitals and joint ventures with health systems. Select Medical continues to strengthen its rehabilitation network to meet rising demand for post-acute care.
HCA Healthcare is also expanding its hospital network through new facilities and capacity additions to meet rising healthcare demand. HCA Healthcare continues to invest in its acute-care footprint, reinforcing capacity expansion as a key long-term growth strategy.
EHC’s Price Performance, Valuation & EstimatesShares of Encompass Health have lost 4.5% year to date against the industry’s 14.3%. growth.
Image Source: Zacks Investment Research
From a valuation standpoint, EHC trades at a forward price-to-earnings ratio of 16.33X compared with the industry average of 18.08X. Encompass Health carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EHC’s 2026 earnings is pegged at $5.97 per share, implying a 9.54% increase from the year-ago period’s level.
Image Source: Zacks Investment Research
Encompass Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.
Should you invest in a kidney care giant or a growing rehabilitation leader? Choosing between DaVita (DVA 0.18%) and Encompass Health (EHC 2.25%) requires weighing steady patient volumes against higher growth rates.
DaVita focuses exclusively on kidney health, primarily providing life-saving dialysis services. Encompass Health operates a national network of inpatient rehabilitation hospitals for patients recovering from serious injuries or illnesses. Both companies depend heavily on government reimbursement, making them stable but sensitive to policy shifts.
The case for DaVitaDaVita provides essential dialysis services to patients with chronic kidney failure and end-stage renal disease. The company operates a massive network of 3,242 outpatient centers, with a heavy concentration in the United States. Revenue is highly concentrated in government-based programs, which account for roughly 68% of total U.S. dialysis patient service revenue. Customer concentration like this adds a layer of risk to the business, as the company depends on Medicare and Medicare Advantage for a majority of its income.
In FY 2025, revenue reached nearly $13.6 billion, up approximately 6.5% from the previous year. The company reported net income of roughly $746.8 million, resulting in a net margin of close to 5.5%. While the top line continued to expand, net income decreased from approximately $936.3 million recorded in the prior fiscal year. This trend highlights the impact of rising costs on the bottom line for healthcare stocks in the care facility space.
As of its December 2025 balance sheet, the debt-to-equity ratio was -23.1x, which means total liabilities exceed shareholder equity. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, stands at approximately 1.3x. Free cash flow for the year was nearly $1.3 billion, calculated by subtracting capital expenditures from cash flow from operations. This level of cash generation provides the company with capital to manage its high debt load and reinvest in its dialysis center infrastructure.
The case for Encompass HealthEncompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States. As of the end of 2025, it operated 173 hospitals across 39 states and Puerto Rico, serving patients who require intensive therapy. The company derives a substantial portion of its net operating revenue from the Medicare program, which accounted for approximately 65.4% of total revenues in 2025. This heavy reliance on a single government payor means that changes in federal healthcare policy can significantly impact its financial performance.
During FY 2025, the company generated revenue of approximately $5.9 billion, a growth rate of roughly 10.5% over the prior year. Net income reached close to $566.2 million, yielding a healthy net margin of nearly 9.5%. This represents a steady improvement in profitability compared to FY 2024, when the net margin was approximately 8.5%. The consistent growth in both revenue and net income suggests that the company is successfully expanding its hospital footprint and capturing demand for post-acute care.
As of the December 2025 balance sheet, the debt-to-equity ratio was roughly 1.1x. This metric compares total debt to shareholder equity to show how a company finances its assets. The current ratio was approximately 1.1x, suggesting a tight but functional balance between current assets and liabilities. Free cash flow reached nearly $439.2 million for the year. This cash allows Encompass Health to fund its ongoing hospital expansion projects and maintain its specialized medical equipment without relying solely on external financing.
Risk profile comparisonDaVita faces significant risks related to its dependence on government reimbursement rates and commercial insurance contracts. Profitability is highly sensitive to patient mix, as commercial payors typically pay higher rates than government programs. The company also deals with intense competition for nephrologists to serve as medical directors. Furthermore, a 2025 cybersecurity incident disrupted operations and billing cycles, highlighting the vulnerability of its digital infrastructure. Ongoing labor shortages for skilled clinical personnel also continue to put upward pressure on operating expenses.
Encompass Health is primarily exposed to Medicare reimbursement volatility, including potential sequestration-related payment reductions. The company must also strictly comply with the "60% Rule," which requires that a majority of patients have specific medical diagnoses to qualify for higher rehabilitation rates. Failure to meet this rule could result in the company being reclassified as an acute-care hospital, leading to significantly lower payments. Encompass Health also faces competition from local acute-care hospitals that may expand their post-acute services to retain patient volume.
Valuation comparisonDaVita currently offers a lower entry point based on earnings and sales, while Encompass Health trades at a premium that reflects its higher growth and margins.
MetricDaVitaEncompass HealthSector BenchmarkForward P/E13.1x17.3x27.1xP/S ratio0.9x1.7xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
These two companies address different needs and services in the healthcare industry, and although they have both rewarded their investors in recent quarters, they offer different risk-and-reward profiles. So, which is the better investment for 2026?
DaVita has benefited from increased market share as its rival, Fresenius, closes several dialysis clinics. It also offers Integrated Kidney Care, along with dialysis, which has become profitable faster than expected. It relies on Medicare reimbursement for a large portion of its revenue, and that presents a significant risk. The company's stock has been priced at a high valuation recently, reflecting its recent performance.
Encompass Health focuses on inpatient rehabilitation hospitals. After a strong first quarter this year, it raised its guidance. It is expanding rapidly and plans to open eight new locations with nearly 600 beds this year. It also relies on Medicare Advantage for a portion of its revenue, but its sensible expansion strategy provides a more predictable opportunity for long-term growth.
Although the demand for kidney care and dialysis is expected to remain steady, so is post-surgical rehabilitation. Encompass Health’s combination of strong execution, expansion, and steady financial performance makes it my choice in this pairing. It appears to offer the most compelling opportunity for attractive returns without excessive risk.
The May Jobs report told a familiar story for investors in healthcare stocks. The sector added 35,200 positions last month, led by ambulatory health services at 25,700 and hospitals at 6,000. What makes this number meaningful is the consistency behind it. Healthcare has averaged roughly 38,000 new jobs per month over the past year, a pace that signals sustained demand for services, not a seasonal blip.
That demand has a direct translation to revenue for the right companies. Ambulatory services are growing because patients are being treated outside hospital walls more often. That benefits outpatient clinics, rehabilitation centers, and home care settings. Hospital hiring reflects a steadily rising inpatient census and procedure volume.
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It’s another reminder that when it comes to macroeconomic data, the real story is almost always in the details. Follow where the jobs are being created, and you find the revenue growth. These three names sit at the intersection of where that growth is actually occurring.
UnitedHealth Group: Leveraging Growth in Healthcare UtilizationUnitedHealth Group Today
UNH
UnitedHealth Group
$407.77 -0.75 (-0.18%)
As of 10:32 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$234.60▼
$415.98Dividend Yield2.17%
P/E Ratio30.80
Price Target$407.17
More ambulatory visits and more managed care utilization equal more Optum touchpoints. That's the direct equation for UnitedHealth Group as healthcare employment, and—by extension—insured patient volume, continues to expand.
UnitedHealth Group NYSE: UNH sits at the center of the U.S. healthcare system as both its largest private insurer and one of its largest care delivery platforms. Rising demand for healthcare services flows through the business from multiple directions.
The operational narrative at UNH right now is a turnaround, and the healthcare jobs data provides a secular tailwind. That turnaround showed up in the company’s Q1 2026 results, which marked a period of stabilization after a difficult stretch. Revenue reached $111.7 billion, up 2% year-over-year, with UnitedHealthcare generating $86.3 billion and Optum contributing the remainder.
The medical benefit ratio improved to 83.9% from 84.8% a year ago, reflecting better cost management and reserve development. It’s further evidence that the medical cost pressures that plagued the managed care sector are beginning to normalize. To support that idea, management raised its full-year 2026 adjusted earnings per share (EPS) guidance to above $18.25 per share.
Optum Health, which runs value-based care practices and home health operations, including the Amedisys platform it acquired in 2025, directly benefits as the ambulatory workforce expands. More clinicians in the field means more capacity to serve more patients under value-based contracts, where utilization efficiency drives margins.
At 22x forward earnings, UNH is still trading at a slight premium to its historic average, but the valuation is getting better. Several analysts have raised their consensus price target well above the consensus price target of $407.17.
HCA Healthcare: A Direct Play on Rising Hospital DemandWhen hospitals add jobs, they're adding capacity, which gets filled by patients. HCA Healthcare NYSE: HCA, the largest hospital operator in the United States, is about as direct a connection between healthcare employment trends and revenue as it gets. HCA's network currently spans 189 hospitals and approximately 2,600 ambulatory sites, giving it direct exposure to both inpatient and ambulatory demand.
HCA Healthcare Today
HCA
HCA Healthcare
$389.45 +2.27 (+0.59%)
As of 10:32 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$330.00▼
$556.52Dividend Yield0.80%
P/E Ratio13.39
Price Target$506.14
The company’s Q1 2026 earnings report confirmed the volume picture remains intact. Revenue reached $19.1 billion, up 4.3% year-over-year. Same-facility admissions grew 0.9%, and same-facility equivalent admissions, which include outpatient procedures, increased 1.3%. Revenue per equivalent admission rose 3.1%, driven by a favorable payer mix and negotiated commercial rate increases. Operating cash flow strengthened to $2 billion, a 22% jump from the prior-year quarter.
HCA Healthcare continues to invest in capacity, deploying $1.1 billion in capital expenditures during Q1 while simultaneously repurchasing $1.6 billion in shares. Yet, HCA is down over 16% in 2026 and well off its all-time high from February. Analysts have a consensus price target of $506.14, which is a gain of about 30% from its price as of this writing.
Encompass Health (EHC): The Post-Acute Play on the Outpatient ShiftThe 25,700 ambulatory jobs added in May aren't just showing up at urgent care clinics. A significant portion reflects the growing demand for post-acute and rehabilitation care—patients discharged from hospitals who need structured recovery before returning home. That's the core business of Encompass Health NYSE: EHC, the largest owner and operator of inpatient rehabilitation hospitals in the United States.
Encompass Health Today
EHC
Encompass Health
$100.06 -1.41 (-1.39%)
As of 10:31 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$92.77▼
$127.99Dividend Yield0.76%
P/E Ratio16.71
Price Target$143.86
The company’s Q1 2026 earnings report was among the best in the company's recent history. Revenue grew 9% year-over-year to $1.59 billion. Adjusted EBITDA climbed 11.2%, and adjusted EPS surged 16.8%. Management raised full-year 2026 revenue guidance to a range of $6.375 billion to $6.47 billion. The discharge-to-community rate improved 50 basis points to 84.5%, and nurse turnover hit its lowest level since 2012. That's a tangible labor cost benefit in a sector where staffing has been a persistent headwind.
The demand backdrop is structural. The U.S. population continues to age; inpatient rehabilitation services remain undersupplied relative to demand. Plus, the shift away from skilled nursing facilities toward higher-quality rehabilitation settings creates a direct tailwind for EHC's model. The company is actively expanding, opening seven new hospitals in 2026 and adding 100 to 150 beds to existing facilities.
As of June 11, EHC is down about 4% in 2026. However, analysts give the stock a consensus Buy rating with a $143.86 price target that would be a gain of over 40%.
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Encompass Health Corporation (EHC - Free Report) reported first-quarter adjusted earnings per share (EPS) of $1.60, which beat the Zacks Consensus Estimate by 6%. The bottom line increased 16.8% year over year.
Net operating revenues of $1.6 billion improved 9.1% year over year. The top line marginally beat the consensus mark by 1%.
The robust results were primarily driven by strong growth in net patient revenue per discharge and higher adjusted EBITDA, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by elevated operating expenses, particularly higher salaries, benefits, and general administrative costs.
Encompass Health Corporation price-consensus-eps-surprise-chart | Encompass Health Corporation Quote
Q1 OperationsEHC’s net patient revenue per discharge rose 3.7% year over year and beat the Zacks Consensus Estimate by 1.5%. Total discharges grew 4.3% year over year to 67,763, but missed the consensus estimate by 1.4%.
Total operating expenses of $1.3 billion escalated 8.1% year over year due to elevated salaries, benefits, other operating and general & administrative expenses. The figure marginally missed our estimate by 0.3%.
Net income climbed 26.3% year over year to $248.2 million in the first quarter.
Adjusted EBITDA of $348.8 million grew 11.2% year over year and surpassed our estimate of $338.2 million.
In the first quarter, Encompass Health opened a new 49-bed hospital in Irmo, SC, and added 44 beds across its existing hospitals.
Financial Update (as of March 31, 2026)Encompass Health exited the first quarter with cash and cash equivalents of $110.5 million, which rose 53% from the 2025-end level.
Total assets of $7.3 billion increased 3.2% from the 2025-end level.
Long-term debt, net of the current portion, amounted to $2.5 billion, which increased 3.4% from that recorded as of Dec. 31, 2025. The current portion of long-term debt totaled $42.9 million.
Total shareholders’ equity of $3.3 billion improved 2.8% from the 2025-end figure.
EHC generated $313.1 million of net cash from operations in the first quarter, which improved 8.5% from the prior-year figure. Adjusted free cash flow decreased 12.9% to $193.8 million for the period.
Capital Deployment UpdateEncompass Health bought back 0.7 million shares worth $71.6 million in the first quarter of 2026. As of Dec. 31, 2025, the company had a leftover capacity of around $261 million under its buyback authorization. Management paid out a quarterly cash dividend of 19 cents per share.
2026 OutlookNet operating revenues are now expected to be between $6.375 billion and $6.470 billion, up from the earlier projection of $6.365-$6.465 billion. This reflected growth over the 2025 reported figure of $5.94 billion.
Adjusted EBITDA is now expected to range between $1.35 billion and $1.38 billion, up from $1.27 billion in 2025. The prior guidance was $1.34-$1.38 billion for the metric.
Adjusted EPS from continuing operations is projected to be between $5.89 and $6.11, reflecting an increase from $5.45 in 2025. The earlier guidance for the metric was $5.81-$6.10.
Adjusted free cash flow is presently forecasted to be $760-$875 million, down from the earlier guidance of $765-$890 million. Maintenance capex is expected to remain in the range of $225-$240 million.
The company expects to open eight de novo hospitals, adding a total of 389 beds. It plans to add 150 to 200 beds to its existing hospitals. It also expects to open freestanding hospitals, including remote and satellite locations, with more than 30 beds beginning in 2026.
Growth Targets ReaffirmedOver the 2023-2027 period, management aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 every year. It also expects a CAGR of 6-8% in discharges in the same time frame.
Zacks RankEncompass Health currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medical Sector ReleasesHere are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and Tenet Healthcare Corporation (THC - Free Report) .
HCA Healthcare reported first-quarter 2026 adjusted earnings per share of $7.15, slightly below the Zacks Consensus Estimate of $7.17, though up 10.9% year over year. Revenues increased 4.3% to $19.1 billion but narrowly missed the consensus estimate by 0.1%. HCA’s performance was affected by declines in same-facility inpatient and outpatient surgeries, along with elevated operating expenses, partially offset by modest growth in emergency room visits.
Ensign Group reported a first-quarter 2026 adjusted EPS of $1.85, which beat the Zacks Consensus Estimate by 3.4%. The bottom line improved 21.7% year over year. Operating revenues advanced 18.4% year over year to $1.4 billion. The top line marginally missed the consensus mark by 0.07%. ENSG’s strong performance was driven by higher occupancy, patient days and contributions from newly acquired and transitioning facilities, along with growth in rental income. However, these gains were partly offset by increased expenses.
Tenet Healthcare reported first-quarter 2026 adjusted earnings per share of $4.82, which surpassed the Zacks Consensus Estimate by 14.5%. The bottom line increased 10.6% year over year. Net operating revenues advanced 2.8% year over year to $5.37 billion. The top line marginally missed the consensus mark by 0.4%. THC’s quarterly performance was driven by strong same-facility revenue growth, higher adjusted admissions, and solid contributions from acquisitions that supported the Ambulatory Care segment. However, these gains were partially offset by an unfavorable payer mix and increased operating costs, particularly higher supply expenses.
, /PRNewswire/ -- Encompass Health Corp. (NYSE:EHC) today announced that its board of directors has declared a quarterly cash dividend on its common stock of $0.19 per share, payable on July 15, 2026, to holders of record on July 1, 2026.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the timing and amounts of dividends, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking statements speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, a decision by the board of directors to change the dividend rate in the future; the legal, regulatory and administrative developments that occur at the federal, state and local levels; general conditions in the economy and capital markets, including any instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
HASLET, Texas--(BUSINESS WIRE)--Davidson Bogel Real Estate (DB2RE) is pleased to announce the sale of approximately 7 acres of land located at the southwest corner of Haslet Parkway and Harmon Road in Haslet, Texas. Collins Meier, Ryan Turner, David Davidson, Jr., and Edward Bogel represented the seller in the transaction. The buyer, Encompass Health, partnered closely with the land owner and master developer, Terra Manna, to bring the project to fruition. JLL represented the buyer in the trans.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 50–bed inpatient rehabilitation hospital in Post Falls, Idaho.
The hospital will serve patients recovering from debilitating illnesses and injuries, including stroke and other neurological conditions, brain and spinal cord injuries, amputations and complex orthopedic issues. In addition to 24–hour nursing care, the hospital will provide physical, occupational and speech therapies to help patients restore function and improve their quality of life. Care will be delivered by specialized nurses, therapists and physicians.
The hospital will include private patient rooms, a large therapy gym equipped with advanced rehabilitation technology, an activities of daily living suite, an in–house dialysis suite, a dining room, a pharmacy and an outdoor therapy courtyard.
"We're excited to expand Encompass Health's presence in Idaho to serve patients from Post Falls, Coeur d'Alene and surrounding areas," said Kim Steward, president of Encompass Health's West region. "Kootenai County is one of the fastest–growing regions in the state and the nation, and the community is already underserved in inpatient rehabilitation. This hospital will help meet that growing need by bringing high–quality, specialized care closer to home."
The hospital is expected to open in 2028 and will be part of Encompass Health's national network of inpatient rehabilitation hospitals. It will be the Company's second location in Idaho, joining its existing hospital in Boise.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10–K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
Key Takeaways EHC plans to build a new 50-bed inpatient rehab hospital in Post Falls, ID, expected to open in 2028.The facility will treat strokes, spinal injuries, amputations, brain injuries and other complex conditions.EHC targets 6-10 new hospitals yearly through 2027, plus steady bed additions and discharge growth. Encompass Health Corporation (EHC - Free Report) recently unveiled plans to build a new 50-bed inpatient rehabilitation hospital in Post Falls, ID. This freestandingfacility in the Kootenai Countywill offer advanced rehabilitation services for patients recovering from serious medical conditions, including strokes, spinal injuries, amputations, complex orthopedic cases, brain injuries and neurological conditions.
This project marks Encompass Health’s second location in Idaho, aligning with the company’s broader growth strategy in high-demand markets. The facility is likely to open in 2028. It will strengthen the brand’s visibility and reach in a growing but underserved community.
The specific costs of the project have not been disclosed yet. Adding more beds and facilities increases EHC’s service capacity and positions the company to capture a larger share of the inpatient rehabilitation market.
Encompass Health boasts a massive footprint of 175 hospitals in 39 states and Puerto Rico. For 2026, the company plans to open eight new hospitals, adding 389 beds. This year, it also expects to add 150-200 beds to existing hospitals. As of April 30, 2026, it had 18 rehabilitation hospitals under development.
During first-quarter 2026 earnings, the company reaffirmed its plans for the 2023-2027 period, where it aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 each year. It also expects a CAGR of 6-8% in discharges in the same time frame.
Price PerformanceShares of Encompass Health have lost 1.2% in the year-to-date period against the 4.1% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank and Key PicksEncompass Health currently has a Zacks Rank #3 (Hold).
Investors can look at some better-ranked stocks in the broader Medical space, like Tenet Healthcare (THC - Free Report) , Aveanna Healthcare (AVAH - Free Report) and DarioHealth Corp. (DRIO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line suggests 4.7% year-over-year growth. It witnessed six upward estimate revisions over the past 30 days against no movement in the opposite direction. Tenet Healthcare beat earnings estimates in each of the last four quarters, with the average surprise being 20.6%.
The Zacks Consensus Estimate for Aveanna Healthcare’s current-year bottom line is pegged at 62 cents per share, which indicates 3.3% growth from a year ago. During the past 60 days, it witnessed two upward estimate revisions against none in the opposite direction. The consensus mark for Aveanna Healthcare’s current year revenues predicts a 5% year-over-year increase.
The Zacks Consensus Estimate for DarioHealth’s current-year earnings implies 65.9% improvement from the year-ago reported figure. It beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 21%. The consensus mark for DarioHealth’s current-year revenues indicates an 18.7% year-over-year increase.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it has commenced a private offering of $500 million in aggregate principal amount of senior notes maturing in 2034 (the "Notes"), subject to market and other conditions. The Notes will be jointly and severally guaranteed on a senior unsecured basis by all of the Company's existing and future subsidiaries that guarantee borrowings under the Company's credit agreement and other capital markets debt.
The Company intends to use the net proceeds from the offering of the Notes, together with available cash on hand, to redeem at par $400 million in aggregate principal amount of its outstanding 4.500% Senior Notes due 2028, to repay $100 million of the outstanding amounts under the Company's senior secured revolving credit facility and to pay certain related fees and expenses in connection with the foregoing.
The Notes will be offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The offer and any sale of the Notes and the related guarantees have not been and will not be registered under the Securities Act or any state securities laws, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release shall not constitute a notice of redemption with respect to the notes to be redeemed.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts, such as the likelihood, timing and effects of the completion of the private offering of the Notes, are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, Encompass Health's ability to complete the offering of the Notes on the terms described or at all; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant disruption in the capital markets or economy; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced the pricing of a private offering of $500 million in aggregate principal amount of 5.875% senior notes due 2034 (the "Notes") at a price of 100% of the principal amount thereof. The Company will pay interest on the Notes semiannually in arrears on June 1 and Dec. 1 of each year, beginning on Dec. 1, 2026. The Notes will be jointly and severally guaranteed on a senior unsecured basis by all of its existing and future subsidiaries that guarantee borrowings under the Company's credit agreement and other capital markets debt. This offering is expected to close on May 29, 2026, subject to customary closing conditions.
The Company intends to use the net proceeds from this offering, together with available cash on hand, to redeem at par $400 million in aggregate principal amount of its outstanding 4.500% Senior Notes due 2028, to repay $100 million of the outstanding amounts under the Company's senior secured revolving credit facility and to pay certain related fees and expenses in connection with the foregoing.
The Notes have been offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The offer and any sale of the Notes and the related guarantees have not been and will not be registered under the Securities Act or any state securities laws, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release shall not constitute a notice of redemption with respect to the notes to be redeemed.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts, such as the completion of the private offering of the Notes and the use of proceeds from the offering, are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, Encompass Health's ability to complete the offering of the Notes; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant disruption in the capital markets or economy; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205.970.5912
[email protected]
Investor relations contact:
Mark Miller | 205.970.5860
[email protected]
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today issued notice for redemption of $400 million of the outstanding principal balance of its 4.500% senior notes due 2028 (the "2028 Notes"). The redemption price will be 100.0% of par, plus accrued and unpaid interest to the redemption date of June 13, 2026, pursuant to the terms of the 2028 Notes. Since June 13, 2026 is not a business day, the redemption price will be paid on the next business day, June 15, 2026. As a result of this redemption, the Company expects to record an approximate $3.2 million loss on early extinguishment of debt in the second quarter of 2026. As of May 14, 2026, the aggregate principal amount of the 2028 Notes outstanding was $800 million.
The information contained in this press release does not constitute a notice of redemption of the 2028 Notes. Holders of the 2028 Notes should refer to the notice of redemption delivered to the registered holders of the 2028 Notes by Computershare Trust Company, National Association, the trustee with respect to the 2028 Notes.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant market disruption; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.4% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $5.96 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.
Key Takeaways Encompass Health is expanding with new rehab hospitals and added beds to meet rising demand.EHC posted 9.1% revenue growth in Q1 2026 as discharges and patient revenues improved.Rising labor costs and $2.5B in long-term debt may pressure EHC's margins and flexibility. Encompass Health Corporation (EHC - Free Report) has been steadily expanding its inpatient rehabilitation business, driven by growing demand for rehabilitation services. The company continues to strengthen its network through de novo hospitals and additional bed capacity across existing facilities. Shares of EHC have lost 0.4% over the past three months, outperforming the industry, which declined 7.2% during the same period.
Headquartered in Bloomfield, AL, Encompass Health has a market capitalization of nearly $10.58 billion. EHC is currently trading at a forward 12-month P/E of 17.24X, higher than the industry average of 16.59X, but lower than its five-year median of 18.76X. EHC currently holds a Zacks Rank #3 (Hold) and a Value Score of B.
Zacks Estimates for EHCThe Zacks Consensus Estimate for 2026 earnings is pegged at $5.96 per share, suggesting a 9.4% year-over-year increase. Over the past month, estimates have seen five upward revisions against one movement in the opposite direction. The consensus estimate for 2026 revenues is pinned at $6.43 billion, indicating 8.3% year-over-year growth. Management expects 2026 revenues to be in the range of $6.375-$6.470 billion. Encompass beat earnings estimates in each of the trailing four quarters, with the average surprise being 9.8%.
Encompass Health Corporation Price, Consensus and EPS SurpriseEHC’s Key Growth DriversEncompass Health continues to benefit from rising demand for inpatient rehabilitation services, supported by an aging population and growing post-acute care needs. In first-quarter 2026, total discharges increased 4.3% year over year to 67,763, while same-store discharges rose 1.6%.
Capacity expansion remains a key growth driver for EHC. The company has been steadily increasing its footprint through de novo hospitals and bed additions. It opened eight de novo hospitals in 2023, seven in 2024 and eight hospitals along with a 50-bed satellite facility in 2025.
In first-quarter 2026, EHC opened a new 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities. For 2026, management plans to open eight de novos, adding nearly 389 beds, along with 150-200 additional beds at existing hospitals.Net patient revenue per discharge improved 3.7%. The company has also maintained healthy occupancy levels, supporting consistent revenue growth. Revenues grew 11.9% in 2024, 10.5% in 2025 and another 9.1% in the first quarter of 2026 to $1.6 billion.
Despite industrywide cost pressures, EHC continues to deliver healthy profitability. Adjusted EBITDA increased 11.2% year over year to $348.8 million in the first quarter of 2026, while adjusted EPS rose 16.8% to $1.60. The company also maintains a strong trailing 12-month return on invested capital (ROIC) of 10.1%, well above the industry average of 6.7%, reflecting disciplined capital deployment and efficient operations.
The company’s healthy cash-generating ability provides flexibility to support expansion initiatives and shareholder returns. Net cash from operations increased 17.9% in 2024, 17.2% in 2025 and another 8.5% in first-quarter 2026 to $313.1 million. EHC expects adjusted free cash flow between $760 million and $875 million in 2026, positioning it well to fund growth projects, dividends and share repurchases.
Key Risk Factors for EHCLabor expenses remain a major concern for EHC. Salaries and benefits increased 11.6% in 2024, 7.4% in 2025 and another 7.3% in the first quarter of 2026 to $818.1 million. Labor costs accounted for 51.6% of revenues during the first quarter. Continued shortages of nurses, therapists and other healthcare professionals may increase dependence on costly contract labor, pressuring margins.
EHC exited first-quarter 2026 with $110.5 million in cash and cash equivalents and $2.5 billion in long-term debt. Its net debt-to-capital ratio of 41.28% remained above the industry average of 39.01%, which could limit financial flexibility. Regulatory changes, including TEAM implementation and expanded RCD reviews, may increase administrative burden and temporarily affect reimbursement collections.
Key PicksWhile investors can maintain a neutral view on Encompass Health, they can consider some better-ranked stocks in the broader Medical space like Indivior Pharmaceuticals, Inc. (INDV - Free Report) , BrightSpring Health Services, Inc. (BTSG - Free Report) and Hinge Health, Inc. (HNGE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Indivior Pharmaceuticals’ 2026 earnings is pegged at $3.35 per share, indicating a 34% year-over-year improvement. INDV beat earnings estimates in each of the trailing four quarters, with the average surprise being 65.4%. The consensus estimate for 2026 revenues is pinned at $1.3 billion, implying 1.5% year-over-year growth.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.1 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Hinge Health’s 2026 earnings is pegged at $2.37 per share, which has moved up 52 cent over the past 30 days. The consensus estimate for revenues is pegged at $791.8 billion, indicating 34.7% year-over-year growth. HNGE’s bottom line surpassed estimates in each of the trailing four quarters, the average surprise being 179.5%.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. EHC has a Momentum Style Score of B, and shares are up 1.6% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $5.96 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EHC should be on investors' short list.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 36-bed inpatient rehabilitation hospital in Bridgeport, West Virginia. The hospital will be an expanded relocation of Encompass Health's former 19-bed unit within the WVU Medicine United Hospital Center.
"We're thrilled to expand access to inpatient rehabilitation care for patients in Bridgeport and surrounding communities," said Abe Sims, president of Encompass Health's MidAtlantic region. "The need for our services has increased with continued growth in the area, and we look forward to serving more patients closer to home in this new, freestanding hospital."
The hospital will feature all private patient rooms, a state-of-the-art therapy gym equipped with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy and an outdoor therapy courtyard.
The hospital will serve patients recovering from debilitating illnesses and injuries, including stroke and other neurological conditions, brain and spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour nursing care, the hospital will provide physical, occupational and speech therapies to help patients restore function and improve quality of life. Care will be delivered by an interdisciplinary team of specialized nurses, therapists and physicians.
Encompass Health's 19-bed unit within the WVU Medicine United Hospital Center is now closed, but Encompass Health Rehabilitation Hospital of Morgantown has temporarily expanded its capacity to provide continuity of care for patients during construction of the new hospital in Bridgeport.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches or other incidents affecting the proper operation, availability or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended December 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
Key Takeaways Encompass Health plans a 36-bed rehabilitation hospital in Bridgeport, expanding regional capacity.The facility replaces a closed 19-bed unit and supports patients recovering from complex conditions.EHC continues its multi-year growth strategy with new hospitals and bed additions amid rising demand. Encompass Health Corporation (EHC - Free Report) is continuing to expand its rehabilitation network with plans to build a new 36-bed inpatient rehabilitation hospital in Bridgeport, WV. The freestanding facility will provide specialized care for patients recovering from strokes, spinal cord injuries, brain injuries, amputations, neurological disorders and complex orthopedic conditions.
The project represents an expansion and relocation of the former 19-bed rehabilitation unit at WVU Medicine United Hospital Center, which is now closed. Until the new hospital opens, Encompass Health Rehabilitation Hospital of Morgantown has increased its capacity to serve patients in the region.
The Bridgeport facility fits into Encompass Health’s long-term growth strategy of increasing capacity in markets where demand for rehabilitation services remains strong, strengthening its market share. It already operates 175 hospitals across 39 states and Puerto Rico, making it one of the largest providers of inpatient rehabilitation services in the country.
In 2026, the company expects to open eight new hospitals, adding 389 beds to its network. It also plans to increase capacity at existing facilities by 150 to 200 beds during the year. As of March 31, 2026, Encompass Health had 18 rehabilitation hospitals under development.
During first-quarter 2026 earnings, the company reaffirmed its growth plans for the 2023-2027 period, where it expects to inaugurate six to 10 de novo hospitals each year, as well as make bed additions in the range of 80-120 each year. It also projects discharge growth at a compound annual rate of 6-8% in the same time frame.
Price PerformanceShares of Encompass Health have lost 0.7% in the year-to-date period against the 7.3% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank and Key PicksEncompass Health currently has a Zacks Rank #3 (Hold).
Investors can look at some better-ranked stocks in the broader Medical space, like Tenet Healthcare (THC - Free Report) ,The Pennant Group, Inc. (PNTG - Free Report) and Quest Diagnostics Incorporated (DGX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line suggests 5.3% year-over-year growth. It witnessed eight upward estimate revisions over the past 30 days against no movement in the opposite direction. Tenet Healthcare beat earnings estimates in each of the last four quarters, with the average surprise being 20.6%.
The Zacks Consensus Estimate for The Pennant Group’s current-year bottom line is pegged at $1.35 per share, which indicates 14.4% growth from a year ago. During the past 30 days, it witnessed one upward estimate revision against none in the opposite direction. The consensus mark for PNTG’s current year revenues predicts a 23.3% year-over-year increase.
The Zacks Consensus Estimate for Quest Diagnostics’ current-year earnings implies 8.6% improvement from the year-ago reported figure. It beat earnings estimates in each of the last four quarters, with an average surprise of 3.5%. The consensus mark for Quest Diagnostics’ current-year revenues indicates a 7.2% year-over-year increase.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.02; value investors should take notice.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC also boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.
The 40-bed inpatient rehabilitation hospital is a joint venture between Encompass Health and Piedmont.
, /PRNewswire/ -- Encompass Health, the nation's largest owner and operator of inpatient rehabilitation hospitals, and Piedmont, the largest healthcare system in the state of Georgia, today announced the opening of Eastside Rehabilitation Hospital in Loganville, Georgia. The 40-bed inpatient rehabilitation hospital is now accepting patients.
Eastside Rehabilitation Hospital exterior "We're pleased to once again partner with Piedmont to address the growing need for inpatient rehabilitation care in Georgia," said Ronnie Wagley, president of Encompass Health's South Atlantic region. "This new, state-of-the-art hospital provides convenient access for residents in Gwinnett County and surrounding areas, allowing them to recover from serious illness or injury closer to home."
The more than 52,000-square-foot hospital provides essential rehabilitative services that help patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions regain function and independence. Patients receive a minimum of three hours of intensive therapy five days each week, frequent physician visits and 24-hour nursing care.
"We're grateful for our partnership with Encompass Health, and I'd like to thank everyone involved for helping make this bold vision a reality," said Larry Ebert, CEO of Piedmont Eastside Medical Center. "Through this partnership, we're expanding access to our nationally recognized inpatient rehabilitation program for families in Gwinnett and surrounding counties."
Hospital amenities include all private patient rooms, a spacious therapy gym featuring state-of-the-art technologies, an activities of daily living suite, in-house dialysis suite, therapy courtyard, dining room, in-house pharmacy and dayroom areas. An interdisciplinary team of highly specialized nurses, therapists and physicians creates customized treatment plans to meet each patient's unique recovery goals.
The hospital is Encompass Health's ninth hospital in Georgia and eighth joint venture hospital with Piedmont. The joint venture partnership between Encompass Health and Piedmont also includes Rehabilitation Hospital of Newnan, Rehabilitation Hospital of Henry, Rehabilitation Hospital of Phenix City, Rehabilitation Hospital of Columbus, Rehabilitation Hospital of Atlanta, Rehabilitation Hospital of Augusta and Rehabilitation Hospital of Athens.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
About Piedmont
Piedmont is empowering Georgians by changing healthcare. We continue to fuel Georgia's growth through safe, cost-effective, high-quality care close to home through an integrated healthcare system that provides a hassle-free, unified experience. We are a private, not-for-profit organization that for centuries has sought to make a positive difference in every life we touch in the communities we serve. Across our 2,000 physical locations we care for more than 4.5 million patients and serve communities that comprise 85 percent of Georgia's population. This includes 27 hospitals, 122 immediate care locations, 1,875 Piedmont Clinic physician practices and more than 3,900 Piedmont Clinic members. Our patients conveniently engage with Piedmont online, as they scheduled more than 657,000 online appointments and over 239,000 virtual visits. With more than 50,000 care givers we are the largest Georgia-based private employer of Georgians, who all came for the job, but stayed for the people. In 2024 and 2023, Piedmont has earned recognition from Newsweek as one of America's Greatest Workplaces for Diversity and also as one of America's Greatest Workplaces for Women. In 2022, Forbes ranked Piedmont on its list of the Best Large Employers in the United States. Piedmont provided more than $844 million in community impact in Fiscal Year 2025.
For more information, or to book your next appointment, visit piedmont.org.
Encompass Health media contact:
Polly Manuel | 205-970-5912
[email protected]
Piedmont media contact:
Megan Joseph | 678-245-1263
[email protected]
Key Takeaways Encompass Health opened Eastside Rehabilitation Hospital, its eighth joint venture with Piedmont.The 40-bed facility expands specialized rehab services for stroke, injury and orthopedic patients.EHC reported 9.1% revenue growth in Q1 2026 as capacity investments continue to pay off. Encompass Health Corporation (EHC - Free Report) continues to expand its inpatient rehabilitation footprint with the opening of Eastside Rehabilitation Hospital in Loganville, GA. The more than 52,000-square-foot, 40-bed facility, developed through a joint venture with Piedmont Healthcare, expands the company's capacity in eastern Georgia.
The opening marks Encompass Health's ninth inpatient rehabilitation hospital in the state and its eighth joint venture with Piedmont. The hospital will provide specialized rehabilitation services for patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions.
Equipped with advanced rehabilitation technologies and specialized treatment areas, the facility is designed to support patients with complex recovery needs. The partnership with Piedmont Healthcare, one of Georgia's leading health systems, strengthens Encompass Health's referral network and should support patient volumes and occupancy growth while further solidifying the company's presence in the market.
The opening aligns with Encompass Health's broader expansion strategy. The company plans to open six to 10 de novo hospitals and add 80-120 beds annually through 2027 to meet rising demand for inpatient rehabilitation services. Consistent with this objective, Encompass Health opened a 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities during the first quarter of 2026.
These investments are already contributing to growth. In the first quarter of 2026, net operating revenues increased 9.1% year over year to $1.59 billion, while total discharges rose 4.3%. Net patient revenue per discharge improved 3.7%, reflecting favorable pricing trends. Supported by a trailing 12-month return on invested capital of 10.1%, well above the industry average of 6.7%, the latest expansion reinforces Encompass Health's long-term growth strategy and its ability to generate value from ongoing capacity investments.
EHC’s Stock Price PerformanceShares of Encompass Health have gained 3.5% over the past three month, outperforming the industry’s 0.1% decline over the same period.
Image Source: Zacks Investment Research
EHC’s Zacks Rank & Key PicksEHC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are The Pennant Group, Inc. (PNTG - Free Report) , Aveanna Healthcare Holdings Inc. (AVAH - Free Report) and DaVita Inc. (DVA - Free Report) , each carryinga Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Pennant Group’s 2026 earnings is pegged at $1.35 per share, indicating 14.4% year-over-year growth. PNTG beat earnings estimates in each of the trailing four quarters, with the average surprise being 5.1%. The consensus estimate for 2026 revenues is pinned at $1.17 billion, implying 23.3% year-over-year growth.
The Zacks Consensus Estimate for Aveanna Healthcare’s 2026 earnings is pegged at 66 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. AVAH beat earnings estimates in each of the trailing four quarters, with the average surprise being 129.4%. The consensus estimate for 2026 revenues is pinned at $2.56 billion, implying 5% year-over-year growth.
The Zacks Consensus Estimate for DaVita’s 2026 earnings is pegged at $15.07 per share, indicating 39.8% year-over-year growth. DVA beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.4%. The consensus estimate for 2026 revenues is pinned at $14.3 billion, implying 4.8% year-over-year growth.
