Core Insights - Encompass Health has opened its first rehabilitation hospital in Connecticut, named Encompass Health Rehabilitation Hospital of Danbury, which is a significant expansion for the company in the Northeast region [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a total of 170 hospitals across 39 states and Puerto Rico [5]. - The company is recognized for providing high-quality rehabilitative care and has received accolades such as being ranked among Fortune's World's Most Admired Companies and Forbes' Most Trusted Companies in America [5]. Hospital Features - The new Danbury hospital has 40 beds and spans 50,500 square feet, offering essential rehabilitation services for patients recovering from various serious conditions [2]. - Patients will receive a minimum of three hours of intensive therapy five days a week, along with 24-hour nursing care and frequent physician visits [2]. - The facility includes private patient rooms, a therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, and recreational areas [3].

Core Insights - The U.S. stock market reacted positively to the Federal Reserve's decision to lower its benchmark interest rate by 0.25 percentage points to a range of 4-4.25%, aiming to stimulate growth while managing inflation [1][11] - The Dow Jones Industrial Average increased by 124.10 points (0.27%) to 46,142.42, the S&P 500 rose by 31.61 points (0.48%) to 6,631.96, and the Nasdaq Composite gained 209.40 points (0.94%) to 22,470.72 [2] Interest Coverage Ratio - Companies with strong interest coverage ratios are expected to benefit from lower borrowing costs, as these ratios indicate a firm's ability to meet interest obligations comfortably [3][6] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, and a ratio below 1 suggests potential default risk [5][8] - Companies highlighted for their strong interest coverage ratios include Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and The Progressive Corporation (PGR) [4][11] Company Performance and Projections - Stride, Inc. is projected to see sales and EPS growth of 11% and 5.9% respectively, with a stock price increase of 65.7% over the past year [14] - Ralph Lauren Corporation anticipates sales and EPS growth of 6% and 19.8% respectively, with a stock price increase of 69.4% over the past year [15] - Encompass Health Corporation expects sales and EPS growth of 10.2% and 18.3% respectively, with a stock price increase of 35.3% over the past year [16] - The Progressive Corporation projects sales and EPS growth of 16.4% and 26.8% respectively, although its stock price has declined by 6.7% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][13] - Stocks that meet these criteria are likely to outperform in various market conditions, with a focus on those with strong historical EPS growth and substantial trading volume [10][12]

Core Insights - Encompass Health Corporation (EHC) has opened a new 50-bed inpatient rehabilitation hospital in Central Florida, specifically in The Villages, to cater to the healthcare needs of a rapidly growing retirement community [1][4] Group 1: Facility Features - The new hospital is equipped to support recovery from serious medical issues such as strokes, spinal cord injuries, brain injuries, amputations, and complex orthopedic conditions, providing at least three hours of therapy five days a week [2] - It includes an in-house pharmacy, a therapy gym with advanced technologies, an in-house dialysis suite, and outdoor therapy areas for realistic skill practice [3] Group 2: Strategic Growth Plans - EHC aims to enhance its network in Florida and is part of a broader growth plan that includes opening seven new hospitals and adding 100-120 beds to existing facilities by 2025 [4] Group 3: Financial Performance - EHC's occupancy rates have improved from 72.1% in 2023 to 74.6% in 2024, with an average of 77.7% in the first half of 2025 [5] - The company's net operating revenues increased by 11.3% year-over-year to $2.91 billion in the first half of 2025, with projections for 2025 revenues between $5.88 billion and $5.98 billion [5][8] Group 4: Stock Performance - Year-to-date, EHC shares have increased by 35.7%, outperforming the industry growth of 10.4% [6]

Core Insights - Encompass Health has opened a new 50-bed inpatient rehabilitation hospital in The Villages, Florida, expanding its network of rehabilitation services [2][3] - The facility aims to provide essential rehabilitation services for patients recovering from various conditions, including strokes and spinal cord injuries, with a focus on personalized treatment plans [3][4] Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with 169 hospitals across 38 states and Puerto Rico [6] - The company is recognized for its high-quality rehabilitative care and has received accolades such as being ranked among Fortune's World's Most Admired Companies and Forbes' Most Trusted Companies in America [6] Facility Features - The new hospital includes 50 private patient rooms, a therapy gym with advanced rehabilitation technologies, and various amenities designed to enhance patient recovery [4] - Patients will receive a minimum of three hours of intensive therapy five days a week, along with 24-hour nursing care and frequent physician visits [3][4]

Core Insights - Encompass Health Corporation (EHC) demonstrates that strategic expansion and operational discipline can yield significant results, driven by an aging population and increased demand for inpatient rehabilitation [1] Group 1: Company Performance - Encompass Health is expanding its hospital footprint and increasing bed capacity to accommodate rising patient volumes, with occupancy rates projected to rise from 72.1% in 2023 to 77.7% in the first half of 2025 [2][10] - Patient discharges have shown consistent growth, increasing by 8.7% in 2023, 8.3% in 2024, and 6.8% in the first half of 2025 [2][10] - Revenue per visit has surged by 27%, 40.8%, and 68% over the same periods, contributing to lower double-digit growth in net operating revenues [3] Group 2: Operational Efficiency - Investments in technology, improved staffing strategies, and stringent cost controls have led to a rise in adjusted net margin from 7.7% in 2023 to 9.7% in the first half of 2025 [4][10] - The company is well-positioned to maintain growth momentum, with the Zacks Consensus Estimate indicating an 18.3% year-over-year increase in earnings for 2025 [5] Group 3: Earnings Estimates - The Zacks Consensus Estimate for the current quarter (September 2025) is $1.20, with an expected year-over-year growth of 16.5% [6] - For the next quarter (December 2025), the estimate is $1.29, reflecting a 10.26% growth [6] - The current year estimate for 2025 stands at $5.24, with an 18.28% increase anticipated compared to the previous year [6] Group 4: Industry Comparison - Peers such as Universal Health Services, Inc. (UHS) and Tenet Healthcare Corporation (THC) are also experiencing revenue growth, with UHS revenues increasing by 6.6% in 2023 and 10.8% in 2024 [7][8] - Tenet Healthcare's revenues rose by 7.2% in 2023 and 0.6% in 2024, with a projected 2.4% increase in 2025 [8] Group 5: Stock Performance and Valuation - Encompass Health's shares have increased by 36.4% year-to-date, outperforming the industry growth of 10.1% [9] - The company trades at a forward price-to-earnings ratio of 22.55X, above the industry average of 19.59X, and holds a Value Score of B [12]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims for investors of Encompass Health Corporation over possible violations of federal securities laws, particularly regarding alleged misrepresentations or omissions by the company and its executives [1] Group 1: Company Background - Encompass Health accounts for approximately one in seven rehabilitation facilities nationally, owning 34 of the 41 inpatient rehab facilities rated by Medicare as having statistically significantly worse rates of potentially preventable readmissions for discharged patients [3] - The company also owns 28 of the 87 rehab facilities that had worse rates of potentially preventable readmissions to general hospitals during patient stays, with 65 of these being for-profit [3] Group 2: Market Reaction - Following the publication of the New York Times article detailing the company's performance issues, the stock price of Encompass Health fell by more than 10% [3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Investigation and Allegations - The investigation is prompted by an article published by The New York Times, which reported serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [3] - Following the publication of the article, Encompass Health's stock price dropped by 10.3% on July 15, 2025 [3] Group 2: Class Action Details - Investors who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2] - Interested investors can join the class action by submitting a form or contacting the Rosen Law Firm directly [2] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [4] - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]

Core Viewpoint - Encompass Health has shown strong performance in its recent earnings report, with significant growth in earnings and revenues, leading to an optimistic outlook for the company moving forward [3][10][11]. Financial Performance - Encompass Health reported Q2 2025 adjusted EPS of $1.40, exceeding estimates by 16.7% and reflecting a 26.1% year-over-year increase [3][4]. - Net operating revenues for Q2 2025 rose 12% year-over-year to $1.5 billion, surpassing consensus estimates by 2.3% [3][4]. - Net income increased by 26.2% year-over-year to $184.9 million, while adjusted EBITDA improved 17.4% year-over-year to $318.6 million, exceeding estimates [6][8]. Operational Highlights - The company added 26 beds to existing hospitals and opened a new de novo hospital during the quarter [4][6]. - Net patient revenue per discharge grew 4.2% year-over-year to $21.7 billion, with total discharges improving by 7.2% year-over-year to 65,237 [5][6]. Financial Position - As of June 30, 2025, Encompass Health had cash and cash equivalents of $99.1 million, up from $85.4 million at the end of 2024 [7]. - Total assets increased by 3.8% to $6.8 billion, while long-term debt decreased by 1.6% to $2.3 billion [7][8]. Capital Deployment - The company repurchased shares worth $24.7 million in Q2 2025 and has approximately $433 million remaining under its buyback authorization [9]. - A quarterly cash dividend of 17 cents per share was paid, which was increased to 19 cents per share in July [9]. Future Outlook - Encompass Health raised its 2025 revenue forecast to between $5.88 billion and $5.98 billion, indicating a 10.4% increase from 2024 [10]. - Adjusted EPS for 2025 is now expected to be between $5.12 and $5.34, suggesting an 18.1% growth from the previous year [11]. - The company aims to open seven de novo hospitals and add 340 beds in 2025, with a long-term growth target of 6-8% CAGR in discharges from 2023 to 2027 [12][13]. Market Position - Encompass Health is positioned favorably within the Zacks Medical - Outpatient and Home Healthcare industry, with a Zacks Rank 2 (Buy) indicating expected above-average returns in the coming months [16][17].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Legal Action and Investor Rights - Shareholders of Encompass Health may be entitled to compensation through a class action without any out-of-pocket fees, as the Rosen Law Firm prepares to seek recovery of investor losses [2] - Investors can join the prospective class action by submitting a form or contacting the law firm directly [2] Group 2: Company Performance and Market Reaction - A New York Times article highlighted serious incidents of patient harm and below-average performance on key safety measures at Encompass Health, leading to a 10.3% drop in the company's stock price on July 15, 2025 [3] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field, including being ranked No. 1 for securities class action settlements in 2017 [4] - The firm has recovered hundreds of millions of dollars for investors, with over $438 million secured in 2019 alone [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Investigation and Allegations - The investigation is prompted by an article from The New York Times highlighting serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [3] - Following the publication of the article, Encompass Health's stock price dropped by 10.3% on July 15, 2025 [3] Group 2: Class Action Details - Investors who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm has been ranked in the top 4 for securities class action settlements since 2013 and recovered hundreds of millions of dollars for investors, including over $438 million in 2019 [4]