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EHCEncompass Health CorporationHold5.7·$104.14+3.00%
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Encompass Health Corporation (EHC) Stock Analysis

Range Bound setup

HoldVALUE-TRAP 1/5Moderate Confidence

Healthcare · Medical Care Facilities

Hold if already holding. Not a fresh buy at $104.14, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.2%/30d (confirmed downtrend).

Encompass Health is the nation's largest inpatient rehabilitation hospital operator with 173 hospitals in 39 states and Puerto Rico, generating $5.94 billion in revenue in 2025, with concentrations in Florida and Texas. Revenue is derived primarily from Medicaid (46.6%) and... Read more

$104.14+17.4% A.UpsideScore 5.7/10#8 of 27 Medical Care Facilities
QualityF-score7 / 9FCF yield2.83%
IncomeYield0.75%(5y avg 1.09%)Payout12.67%sustainable
Stop $98.08Target $122.23(analyst − 13%)A.R:R 3.0:1
Analyst target$140.50+34.9%12 analysts
$122.23our TP
$104.14price
$140.50mean
$152

Hold if already holding. Not a fresh buy at $104.14, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.2%/30d (confirmed downtrend). Chart setup: RSI 49 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.

Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 56d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Aug 4, 202656d to earnings· next earnings call

Thesis

Rewards
Sector modifier (Healthcare): +0.5
Strong earnings beat streak (4/4)
Attractive valuation
Risks
Negative momentum
Below 200-MA, MA slope -1.2%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)17.3
P/E (Fwd)15.5
Mkt Cap$10.0B
EV/EBITDA9.5
Profit Mgn10.0%
ROE25.2%
Rev Growth9.0%
Beta0.59
Dividend0.75%
Rating analysts17

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C1.56bearish
IV57%elevated
Max Pain$155+48.8% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicFlorida and Texas
    10-K Item 1: 'We operate hospitals in 39 states and Puerto Rico, with concentrations in Florida and Texas.'

Material Events(8-K, last 90d)

  • 2026-03-10Item 1.01LOW
    Encompass Health entered the 2026 Credit Agreement on March 9, 2026: $1B revolving facility maturing March 9, 2031, replacing the 2022 Credit Agreement. Terms substantially similar with extended maturity, lower undrawn fee, and relaxed investment/debt covenants.
    SEC filing →
  • 2026-03-10Item 1.02MEDIUM
    Encompass Health terminated its Sixth Amended and Restated Credit Agreement (the 2022 Credit Agreement) with Barclays Bank PLC as administrative agent on March 9, 2026, upon entry into the new 2026 Credit Agreement.
    SEC filing →
  • 2026-02-20Item 5.02LOW
    Encompass Health Board appointed Cain A. Hayes as director effective January 30, 2026. On February 19, 2026 he was assigned to the Compensation and Human Capital Committee and Compliance and Quality of Care Committee.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Obv
1.0
Ma Position
1.0
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA, MA slope -1.2%/30d — confirmed downtrend
GatesMomentum 1.3<4.5Death cross (50MA < 200MA)Executive change: officer departure/appointmentA.R:R 3.0 ≥ 1.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 56d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
49 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $99.78Resistance $109.89

Price Targets

$98
$122
A.Upside+17.4%
A.R:R3.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! momentum at 1.3 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-04 (56d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is EHC stock a buy right now?

Hold if already holding. Not a fresh buy at $104.14, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.2%/30d (confirmed downtrend). Chart setup: RSI 49 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $122.23 (+17.4%), stop $98.08 (−6.2%), A.R:R 3.0:1. Score 5.7/10, moderate confidence.

What is the EHC stock price target?

Take-profit target: $122.23 (+17.4% upside). Target $122.23 (+17.4%), stop $98.08 (−6.2%), A.R:R 3.0:1. Stop-loss: $98.08.

What are the risks of investing in EHC?

Negative momentum; Below 200-MA, MA slope -1.2%/30d (confirmed downtrend).

Is EHC overvalued or undervalued?

Encompass Health Corporation trades at a P/E of 17.3 (forward 15.5). TrendMatrix value score: 8.1/10. Verdict: Hold.

What do analysts say about EHC?

17 analysts cover EHC with a consensus score of 4.4/5. Average price target: $141.

What does Encompass Health Corporation do?Encompass Health is the nation's largest inpatient rehabilitation hospital operator with 173 hospitals in 39 states and...

Encompass Health is the nation's largest inpatient rehabilitation hospital operator with 173 hospitals in 39 states and Puerto Rico, generating $5.94 billion in revenue in 2025, with concentrations in Florida and Texas. Revenue is derived primarily from Medicaid (46.6%) and Medicare (24.7%) government programs for patients recovering from strokes, fractures and neurological conditions.

Related stocks: ASTH (Astrana Health Inc.) · ARDT (Ardent Health, Inc.) · AVAH (Aveanna Healthcare Holdings Inc) · MD (Pediatrix Medical Group, Inc.) · CON (Concentra Group Holdings Parent)
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