Encompass Health Corporation (EHC)

In the past six months, Encompass Health's stock has been influenced by several key events, including strong first-quarter 2026 financial performance, leading to raised full-year guidance. The company continued its share repurchase program and declared a quarterly dividend. Encompass Health expanded its capacity by opening a new rehabilitation hospital in Pennsylvania. Barclays lowered its price target on Encompass Health, while maintaining an "Overweight" rating. Over the last 12 months, the stock's price has decreased, though it has seen a year-to-date return and a slight increase in the past month.

Demand for rehabilitation services at Encompass Health can exhibit seasonality, with the healthcare sector often experiencing increased patient volumes during the winter due to factors like the flu season and slip-and-fall incidents. Sports-related injuries can also drive demand during specific times of the year. The medical rehabilitation services market is experiencing rapid growth due to an aging global population and the rising prevalence of chronic diseases and injuries.

Encompass Health Corp. is the largest owner and operator of inpatient rehabilitation hospitals in the United States, providing specialized rehabilitative treatment for patients recovering from serious conditions. The company operates within the Healthcare and Social Assistance sector, focusing on inpatient rehabilitation. In July 2022, Encompass Health spun off its home health and hospice business into Enhabit Inc. to refocus on inpatient rehabilitation services.

Encompass Health has a national footprint across 39 states and Puerto Rico, operating 184 locations as of April 2026. The states with the highest concentration of facilities are Texas, with 29 locations, and Florida, with 26 locations. The company's network includes both wholly-owned hospitals and joint ventures with other health systems.

Encompass Health has maintained a strong brand reputation, being named to Fortune's World's Most Admired Companies list for the sixth consecutive year in February 2026. The company was also included in Forbes' 2026 America's Best Companies list and recognized as one of Becker's Healthcare's Top Places to Work in Healthcare for 2026.

Encompass Health's ownership is predominantly institutional, with institutional investors holding approximately 97.25% of the stock as of May 2026. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc., and Invesco Ltd. Insider holdings are approximately 1.80% to 2.98% of the stock, with Joel C. Gordon being the largest individual shareholder. Retail investors hold approximately 24.65% of the stock.