Encompass Health (EHC): Assessing Valuation After Strong Q3 Results and Upgraded 2025 Outlook

Simply Wall St.11-07

Encompass Health (EHC) just issued an earnings update that stands out, not only for a solid third quarter but also for revising its 2025 earnings guidance upward. Management’s move suggests a brighter...

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Management’s move suggests a brighter...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-ehc/encompass-health/news/encompass-health-ehc-assessing-valuation-after-strong-q3-res\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Encompass Health (EHC): Assessing Valuation After Strong Q3 Results and Upgraded 2025 Outlook</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEncompass Health (EHC): Assessing Valuation After Strong Q3 Results and Upgraded 2025 Outlook\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-07 20:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nyse-ehc/encompass-health/news/encompass-health-ehc-assessing-valuation-after-strong-q3-res><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Encompass Health (EHC) just issued an earnings update that stands out, not only for a solid third quarter but also for revising its 2025 earnings guidance upward. Management’s move suggests a brighter...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-ehc/encompass-health/news/encompass-health-ehc-assessing-valuation-after-strong-q3-res\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EHC","symbol_name":"Encompass Health Corporation","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nyse-ehc/encompass-health/news/encompass-health-ehc-assessing-valuation-after-strong-q3-res","article_id":"2581883645","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6033000-choice2-main-header/1585186569462"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/healthcare/nyse-ehc/encompass-health/news/encompass-health-ehc-assessing-valuation-after-strong-q3-res","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581883645","pubTimestamp":1762519271,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Encompass Health (EHC) just issued an earnings update that stands out, not only for a solid third quarter but also for revising its 2025 earnings guidance upward. Management’s move suggests a brighter business outlook ahead.\nSee our latest analysis for Encompass Health.\nAfter posting upbeat results and raising 2025 guidance, Encompass Health’s share price has cooled a little recently, down 8.1% over the past month. However, it has still built real momentum for the year with a year-to-date...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"EHC":"Encompass Health Corporation"},"translate_title":"Encompass Health(EHC)：在强劲的第三季度业绩和升级的2025年展望后评估估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EHC":1.5},"content_text":"Encompass Health (EHC) just issued an earnings update that stands out, not only for a solid third quarter but also for revising its 2025 earnings guidance upward. Management’s move suggests a brighter business outlook ahead. See our latest analysis for Encompass Health. After posting upbeat results and raising 2025 guidance, Encompass Health’s share price has cooled a little recently, down 8.1% over the past month. However, it has still built real momentum for the year with a year-to-date share price return of 25.3%. Looking at the longer term, a 3-year total shareholder return of 106% highlights the significant value that has accrued for investors. The buyback activity in recent months is another strong indication that management sees more potential ahead. If you’re interested in opportunities beyond the big names, now could be the perfect moment to broaden your search and discover fast growing stocks with high insider ownership With strong earnings, a robust track record, and management’s confidence on display, the real question is whether Encompass Health’s recent momentum signals an undervalued opportunity for investors or if the market is already pricing in its future growth. AdvertisementMost Popular Narrative: 17.3% Undervalued With Encompass Health closing at $115.07, the most widely referenced narrative puts fair value noticeably higher, suggesting material upside from today’s price. This perspective captures bullish momentum while signaling that the consensus leans toward optimism based on strong underlying trends.  The surge in the 65-plus population and persistent undersupply of inpatient rehabilitation beds are driving high and still-unmet demand for Encompass Health's core services. Ongoing hospital openings and bed expansions position the company to capture significant incremental patient volume, supporting higher revenue growth for years to come.  Read the complete narrative. Want to uncover the formula powering this valuation call? A confident combination of growth levers, profit drivers, and one pivotal future assumption set this narrative apart. The results hinge on projections the market hasn't fully digested, and only the full story reveals what’s behind the strong price estimate. Result: Fair Value of $139.08 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent labor shortages and potential regulatory changes could disrupt Encompass Health’s growth story. These factors pose real risks to the optimistic outlook. Find out about the key risks to this Encompass Health narrative.  Build Your Own Encompass Health Narrative If you have a different perspective or want to dig into the numbers yourself, you can easily craft your own take in just a few minutes. Go ahead and Do it your way. A great starting point for your Encompass Health research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? Smart investors keep moving ahead of the market. Don’t wait for the next big thing to pass you by. Seize your edge by searching fresh opportunities tailored to your interests.  Capture real income potential as you scan these 17 dividend stocks with yields > 3% offering robust yields above 3% for reliable cash flow. Uncover high-growth potential in the rapidly evolving field of artificial intelligence with these 25 AI penny stocks offering unique exposure. Tap into the future of finance and blockchain by investigating these 82 cryptocurrency and blockchain stocks set to reshape digital markets.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Encompass Health might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2581883645","isCrawlerRequest":true}