Zacks Research Predicts Weaker Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC) – Research analysts at Zacks Research lowered their Q4 2025 earnings per share (EPS) estimates for Encompass Health in a note issued to investors on Wednesday, January 8th. Zacks Research analyst Z. Masood now anticipates that the company will post earnings of $1.14 per share for the quarter, down from their previous forecast of $1.15. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Encompass Health’s Q2 2026 earnings at $1.40 EPS.

EHC has been the topic of a number of other research reports. Royal Bank of Canada increased their target price on Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a report on Wednesday, October 30th. KeyCorp raised their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. Barclays upped their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a report on Tuesday, October 29th. UBS Group lifted their price target on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Finally, Truist Financial restated a “buy” rating and issued a $116.00 price objective (up from $108.00) on shares of Encompass Health in a research note on Wednesday, October 30th. Nine investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Encompass Health has a consensus rating of “Buy” and an average target price of $107.11.

Encompass Health Price Performance

NYSE EHC opened at $91.08 on Friday. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.04. Encompass Health has a 1-year low of $67.94 and a 1-year high of $104.55. The stock has a market capitalization of $9.18 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 1.30 and a beta of 0.89. The business’s fifty day moving average price is $98.23 and its 200-day moving average price is $93.65.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Monday, October 28th. The company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. Encompass Health had a net margin of 8.10% and a return on equity of 17.60%. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same period in the previous year, the business posted $0.86 earnings per share. The business’s revenue for the quarter was up 11.9% on a year-over-year basis.

Encompass Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.75%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s dividend payout ratio (DPR) is 16.43%.

Institutional Trading of Encompass Health

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. CIBC Asset Management Inc grew its holdings in Encompass Health by 3.5% during the 3rd quarter. CIBC Asset Management Inc now owns 2,957 shares of the company’s stock valued at $286,000 after buying an additional 100 shares in the last quarter. Commonwealth Equity Services LLC grew its stake in Encompass Health by 1.3% during the second quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock valued at $845,000 after acquiring an additional 123 shares in the last quarter. V Square Quantitative Management LLC increased its holdings in Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after acquiring an additional 140 shares during the last quarter. Verdence Capital Advisors LLC lifted its stake in Encompass Health by 4.6% in the 3rd quarter. Verdence Capital Advisors LLC now owns 3,670 shares of the company’s stock worth $355,000 after purchasing an additional 160 shares in the last quarter. Finally, Mount Yale Investment Advisors LLC boosted its holdings in shares of Encompass Health by 6.6% during the 2nd quarter. Mount Yale Investment Advisors LLC now owns 2,749 shares of the company’s stock valued at $236,000 after purchasing an additional 170 shares during the last quarter. Institutional investors own 97.25% of the company’s stock.

Encompass Health Company Profile

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.