Encompass Health Corporation (EHC)

Encompass Health's stock price has been impacted by several events in the past six months. The company reported strong Q2 and Q3 2025 results, with increased revenue, adjusted EBITDA, and earnings per share, leading to raised full-year guidance. Encompass Health has actively pursued expansion, opening new hospitals and adding beds to existing facilities. Analyst ratings have been positive, with UBS and Raymond James maintaining 'Buy' or 'Strong Buy' ratings. However, insiders have primarily sold shares in the past three months, which could be viewed cautiously by investors.

While Encompass Health acknowledges quarterly fluctuations in discharge volume growth, specific detailed seasonal patterns are not explicitly provided. The overall demand for Encompass Health's inpatient rehabilitation services is consistently driven by demographic trends, particularly the aging U.S. population, with the 75+ age cohort being the primary user of inpatient rehabilitation facilities. The company's expansion strategy is a direct response to this growing and underserved market demand.

Encompass Health Corp., headquartered in Birmingham, Alabama, is a leading provider of integrated post-acute healthcare services in the United States, operating primarily within the Health Care sector and the Hospital/Nursing Management industry. The company specializes in facility-based patient care through its extensive network of inpatient rehabilitation hospitals, providing specialized rehabilitative treatment and care to patients recovering from various debilitating illnesses and injuries. Encompass Health's services encompass medical, nursing, therapy, and ancillary services, and it also offers the MyEncompass Health Caregiver application for real-time progress tracking.

Encompass Health is the nation's largest owner and operator of inpatient rehabilitation hospitals. As of September 30, 2025, the company owned and operated 170 inpatient rehabilitation hospitals, with 66 of these operating as joint ventures with acute care hospitals. These facilities are located in 39 states and Puerto Rico. Approximately one in three patients in the U.S. receiving inpatient rehabilitative care receive it through an Encompass Health rehabilitation hospital.

Encompass Health has maintained a strong brand reputation in the past year, being named to Fortune's World's Most Admired Companies list for the fifth consecutive year in February 2025. In January 2025, Encompass Health was recognized by Forbes on its inaugural list of the Most Trusted Companies in America, ranking fourth in the Health Care Equipment and Services category. Encompass Health was named America's most awarded leader in inpatient rehabilitation for the sixth consecutive year.

Encompass Health Corporation is a publicly traded entity with its ownership dispersed among various shareholders, primarily large institutional investors, who hold approximately 92-95.7% of the company's shares. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Invesco Ltd. Joel C. Gordon is a significant individual shareholder, owning 1.48 million shares, representing 1.47% of the company.