Cracking The Code: Understanding Analyst Reviews For Encompass Health

Encompass Health EHC has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $86.2, a high estimate of $95.00, and a low estimate of $82.00. This current average has increased by 8.43% from the previous average price target of $79.50.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Encompass Health is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Encompass Health. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Encompass Health compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Encompass Health's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Encompass Health's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Encompass Health analyst ratings.

Unveiling the Story Behind Encompass Health

Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas.

Financial Milestones: Encompass Health's Journey

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Encompass Health's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 9.63%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.83%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Encompass Health's ROE stands out, surpassing industry averages. With an impressive ROE of 5.31%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Encompass Health's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.41% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Encompass Health's debt-to-equity ratio is below the industry average. With a ratio of 1.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.