Why You Should Add Encompass Health to Your Portfolio Now

Encompass Health Corporation EHC is aided by growing patient volumes, frequent expansion initiatives and a strong financial position.EHC’s Zacks Rank & Upbeat Price PerformanceEncompass Health currently carries a Zacks Rank #2 (Buy).The stock has gained 16.6% in the past year compared with the industry’s 7.2% growth.Image Source: Zacks Investment ResearchEHC’s Favorable Style ScoreEHC carries an impressive Value Score of A. Value Score helps find stocks that are undervalued. Back-tested results have shown so far that stocks with a favorable Value Score in combination with a solid Zacks Rank are the best investment bets.Encompass Health’s Robust Growth ProspectsThe Zacks Consensus Estimate for Encompass Health’s 2025 earnings is pegged at $5.30 per share, indicating a year-over-year improvement of 19.6%. The consensus mark for revenues is pegged at $5.9 billion, implying a year-over-year increase of 10.4%.The consensus estimate for 2026 earnings is pegged at $5.81 per share, indicating an increase of 9.6% from the 2025 estimate. The consensus estimate for revenues is pegged at $6.5 billion, implying 8.8% growth from the 2025 estimate.EHC’s Northbound Estimate RevisionThe Zacks Consensus Estimate for 2025 earnings has been revised upward 0.2% in the past 60 days.Encompass Health’s Impressive Earnings Surprise HistoryEHC’s bottom line outpaced estimates in each of the trailing four quarters, the average surprise being 12.47%.EHC’s Key Business TailwindsEncompass Health has exhibited solid revenue growth, largely fueled by an expanding patient base at its inpatient rehabilitation hospitals. For the first nine months of 2025, the company recorded an 10.6% increase in revenues compared with the same period in the prior year. This strong performance is driven by rising demand for specialized rehabilitative care that helps individuals recovering from chronic illnesses and injuries return to daily life. Such sustained demand is expected to continue supporting the momentum of the Inpatient Rehabilitation segment.The company sees considerable growth potential in this segment, supported by a series of expansion initiatives. Encompass Health frequently launches new inpatient rehabilitation hospitals, either independently or in collaboration with prominent healthcare partners, across various U.S. communities. Each new facility enhances the company’s service capacity and broadens its nationwide footprint.As of now, Encompass Health operates 173 hospitals spanning 39 states and Puerto Rico. The latest addition to its network was the Rehabilitation Hospital of Lake Worth, which opened this December. In both 2026 and 2027, Encompass Health plans to add 150-200 beds to existing facilities. The company’s ability to execute its growth strategy is supported by a strong financial foundation. As of Sept. 30, 2025, cash and cash equivalents totaled $48.7 million. Encompass Health generated $829.6 million in operating cash flows during the first nine months of 2025, representing an 14.6% increase year over year.Other Stocks to ConsiderSome other top-ranked stocks in the Medical space are ANI Pharmaceuticals, Inc. ANIP, Collegium Pharmaceutical, Inc. COLL and Pediatrix Medical Group, Inc. MD, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.ANI Pharmaceuticals’ earnings surpassed estimates in each of the last four quarters, the average surprise being 21.24%. The Zacks Consensus Estimate for ANIP’s 2025 earnings indicates a rise of 45.4% while the consensus mark for revenues implies an improvement of 41.6% from the respective year-ago actuals. The consensus mark for ANIP’s 2025 earnings has moved 0.3% north in the past 30 days. Collegium Pharmaceutical’s earnings beat estimates in each of the trailing four quarters, the average surprise being 10.63%. The Zacks Consensus Estimate for COLL’s 2025 earnings indicates a rise of 17.1% while the consensus mark for revenues implies an improvement of 24.2% from the respective year-ago actuals. The consensus mark for COLL’s 2025 earnings has moved 6.6% north in the past 60 days.The bottom line of Pediatrix Medical outpaced estimates in each of the trailing four quarters, the average surprise being 35.42%. The Zacks Consensus Estimate for MD’s 2025 earnings indicates a rise of 37.1% from the year-ago actual.  The consensus mark for MD’s 2025 earnings has moved 16.3% north in the past 60 days. Shares of ANI Pharmaceuticals, Collegium Pharmaceutical and Pediatrix Medical have gained 42.4%, 61.9% and 64.6%, respectively, in the past year. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report Collegium Pharmaceutical, Inc. (COLL): Free Stock Analysis Report Encompass Health Corporation (EHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks