Encompass Health Corp (EHC) Stock Analysis
Verdict: HOLD
Resilient demand for inpatient rehab drives significant earnings beats, but heavy insider selling at $107 suggests a near-term ceiling.
Investment score: 64/100
Analysis as of
Is Encompass Health Corp stock worth reviewing? The TradeMates thesis
Hold for stable operations and earnings reliability, but avoid new entries until price stabilizes above the $100 support level.
7-factor investment score
- Valuation: 60/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 90/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Encompass Health Corp opportunities and risks
What speaks for EHC
- Aggressive Capacity Expansion
What speaks against EHC
- Insider Divestment Signal
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EHC | 16.5x | 1.7x | 8.7x | 58.8% | 10.0% | 4.6% |
| HCA | 12.9x | 1.1x | 8.6x | 34.9% | 8.9% | 9.2% |
| THC | 8.9x | 0.7x | 5.2x | 42.8% | 7.9% | 22.3% |
| ENSG | 23.7x | 1.7x | 17.6x | 13.9% | 6.9% | 4.7% |
| UHS | 5.9x | 0.5x | 5.1x | 71.3% | 8.6% | 9.8% |
| PACS | 23.4x | 1.1x | 20.3x | 19.2% | 4.5% | 4.1% |
| Peer median | 12.9x | 1.1x | 8.6x | 34.9% | 7.9% | 9.2% |
Frequently asked questions about Encompass Health Corp (EHC)
Is EHC stock a good investment?
The TradeMates model rates Encompass Health Corp as HOLD with an investment score of 64/100. Hold for stable operations and earnings reliability, but avoid new entries until price stabilizes above the $100 support level. This is algorithmic model output, not personal investment advice.
Is EHC stock a buy?
The TradeMates model verdict for EHC is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.