In 2024, the U.S. healthcare sector delivered a mixed performance. Healthcare stocks lagged behind the broader market as investors leaned toward high-growth technology stocks, moving away from more defensive industries. This shift, however, has made healthcare stocks valuations more appealing, creating potential opportunities for investors. With growing demand for healthcare services, the sector’s prospects for 2025 appear promising.Certain areas within the healthcare industry are showing resilience. Employ ...

The healthcare sector has benefited from higher volumes, improved occupancy and several expansion initiatives in 2024. A significant uptick in elective surgeries and non-urgent procedures led to a volume rise. Advancements in technology, focus on consumer-centric healthcare models and improving health equity have benefited companies in the healthcare space. However, workforce shortages and margin pressures, coupled with regulatory uncertainty, continue to weigh on the companies' prospects.What’s Brewing in ...

BIRMINGHAM, Ala. and BANGOR, Maine, Dec. 18, 2024 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced preliminary plans to build a freestanding, 50-bed inpatient rehabilitation hospital to be located at 1017 Union Street in Bangor, Maine. The hospital will serve patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour nursing care ...

Shares of Encompass Health Corporation (EHC) have gained 59.9% in the past year compared with the industry’s 27.4% growth. The Medical sector and the S&P 500 composite index have returned 6.4% and 32.4%, respectively, in the same time frame. With a market capitalization of $10.4 billion, the average volume of shares traded in the last three months was 0.6 million.Improved patient volumes, an extensive healthcare facility network and strong financial health continue to propel Encompass Health's growth.The le ...

Core Viewpoint - Encompass Health reported strong third-quarter earnings, with adjusted EPS beating estimates and significant year-over-year growth in revenues and income, indicating positive operational performance and growth potential in the healthcare sector [2][5][19]. Financial Performance - Adjusted EPS for Q3 was $1.03, exceeding the Zacks Consensus Estimate by 9.6% and reflecting a 19.8% increase year over year [2]. - Net operating revenues reached $1.4 billion, marking an 11.6% year-over-year improvement and surpassing consensus estimates by 1.7% [2]. - Net and comprehensive income rose 29.7% year over year to $147.1 million [5]. - Adjusted EBITDA grew 13.4% year over year to $269.3 million, exceeding estimates [6]. Operational Highlights - Total discharges increased by 8.8% year over year to 62.7 million, outperforming growth estimates [4]. - Net patient revenue per discharge rose 2.5% year over year, although it fell short of the 3.5% growth estimate [4]. - Total operating expenses were $1.14 billion, up 11.1% year over year, primarily due to increased salaries and benefits [4]. Financial Position - As of September 30, 2024, cash and cash equivalents stood at $147.8 million, more than doubling from the end of 2023 [7]. - Total assets increased by 5.8% to $6.5 billion, while long-term debt decreased by 12.8% to $2.7 billion [8]. - Total shareholders' equity improved by 18.4% to $2.7 billion [9]. Capital Deployment - The company repurchased shares worth $23.6 million in the first nine months of 2024, with a remaining buyback capacity of approximately $498 million [10]. - A quarterly cash dividend of 17 cents per share was paid [11]. 2024 Outlook - Net operating revenues are projected to be between $5.325 billion and $5.375 billion, reflecting an 11.4% increase from 2023 [13]. - Adjusted EBITDA is expected to range from $1.07 billion to $1.09 billion, indicating an 11.2% growth from the previous year [13]. - Adjusted EPS is anticipated to be between $4.19 and $4.33, representing a 17% rise from 2023 [14]. - The company plans to open six de novo hospitals and add approximately 110 beds to existing facilities in 2024 [15]. Growth Strategy - Encompass Health aims to inaugurate six to ten de novo hospitals annually and add 80-120 beds each year from 2023 to 2027, targeting a CAGR of 6-8% in discharges during this period [16]. Market Position - Encompass Health holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [19].

Core Insights - The article compares two stocks in the Medical - Outpatient and Home Healthcare sector: Encompass Health (EHC) and Chemed (CHE), evaluating which stock offers better value for investors [1]. Valuation Metrics - EHC has a forward P/E ratio of 23.64, while CHE has a forward P/E of 24.73 [5]. - EHC's PEG ratio is 1.34, indicating a more favorable valuation compared to CHE's PEG ratio of 2.25 [5]. - EHC's P/B ratio is 3.82, significantly lower than CHE's P/B of 6.95, suggesting EHC is more undervalued relative to its book value [6]. Investment Ratings - EHC currently holds a Zacks Rank of 2 (Buy), while CHE has a Zacks Rank of 4 (Sell), indicating a more positive analyst outlook for EHC [3]. - Based on various valuation metrics, EHC has a Value grade of A, whereas CHE has a Value grade of C, further supporting the conclusion that EHC is the more attractive investment option [7].

A Shared Vision Encompass Health and BLOX began working together in the early 2000s with a shared vision to build higher quality and more cost-efficient hospitals. Initially, BLOX manufactured bathroom pods off-site in an assembly line format at their facility in Bessemer, Alabama for installation at new Encompass Health hospitals. Since that time, both companies have grown rapidly, and BLOX has progressed from producing bathrooms to headwall modules and patient rooms, to a fully prefabricated hospital. BLO ...

Investors interested in Medical - Outpatient and Home Healthcare stocks are likely familiar with Encompass Health (EHC) and Astrana Health, Inc. (ASTH) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts ...

Company Overview - Encompass Health Corporation is a provider of integrated healthcare services, operating a network of 162 inpatient rehabilitation hospitals across 37 states and Puerto Rico [10] - The company focuses on delivering high-quality, cost-effective, integrated care, which is increasingly important in the context of coordinated care and integrated delivery payment models [10] Investment Ratings - Encompass Health is rated 2 (Buy) on the Zacks Rank, indicating a positive outlook for the stock [11] - The company has a VGM Score of A, reflecting strong performance across value, growth, and momentum metrics [11] Financial Metrics - Encompass Health has a Value Style Score of A, supported by a forward P/E ratio of 23.49, making it attractive to value investors [11] - The Zacks Consensus Estimate for fiscal 2024 earnings per share has increased by $0.09 to $4.27, with eight analysts revising their earnings estimates upwards in the last 60 days [11] - The company has demonstrated an average earnings surprise of 13.6%, indicating strong performance relative to expectations [11] Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Encompass Health is positioned as a compelling option for investors [12]

BIRMINGHAM, Ala. and WESLEY CHAPEL, Fla., Nov. 4, 2024 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced preliminary plans to build a freestanding, 50-bed inpatient rehabilitation hospital in the master planned community of Wiregrass Ranch in Wesley Chapel, Florida.The hospital will serve patients recovering from debilitating illnesses and injuries, including strokes and other neurological disorders, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions. In add ...