(EHC) Encompass Health - Ratings and Ratios

Encompass Health Corporation (NYSE:EHC) is a leading provider of post-acute healthcare services, operating a network of inpatient rehabilitation hospitals across the United States and Puerto Rico. The company specializes in rehabilitative care for patients recovering from strokes, brain injuries, spinal cord injuries, hip fractures, and other debilitating conditions. Its services include physical, occupational, and speech therapies, as well as medical and nursing care, designed to help patients achieve functional independence. Encompass Health serves a diverse payer mix, including Medicare, managed care plans, private insurers, and state governments. The company, rebranded from HealthSouth Corporation in 2018, has been a key player in the healthcare industry since its incorporation in 1984. Headquartered in Birmingham, Alabama, Encompass Health is committed to delivering high-quality patient outcomes and operates as one of the largest rehabilitation healthcare providers in the U.S.

From a technical perspective, EHC is currently trading at $100.72, with a 20-day average volume of 969,622 shares. The stock is slightly below its 20-day SMA of $100.80 but remains above its 50-day SMA of $99.58, signaling potential short-term consolidation. The 200-day SMA of $95.52 indicates a longer-term bullish trend. The Average True Range (ATR) of 3.06 reflects moderate volatility, suggesting that price movements are manageable for investors seeking stability.

Fundamentally, Encompass Health exhibits a strong financial profile. With a market capitalization of $10.393 billion, the company operates at a price-to-earnings (P/E) ratio of 22.98, slightly above its forward P/E of 20.12, indicating expectations of future growth. The price-to-book (P/B) ratio of 4.77 highlights a premium valuation relative to book value, while the price-to-sales (P/S) ratio of 1.93 suggests reasonable revenue multiples. The return on equity (RoE) of 16.32% underscores efficient profitability in generating returns from shareholders equity.

3-Month Forecast: Based on the convergence of technical and fundamental data, EHC is expected to maintain its upward trajectory, supported by strong operational performance and favorable industry dynamics. The stock may experience short-term consolidation near the $100 level but is likely to break out above $105 as the 50-day SMA continues to rise. Longer-term, the bullish trend is expected to persist, driven by stable cash flows and the growing demand for post-acute care services.