Company Overview - Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States [3] Investigation Details - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Encompass Health, focusing on whether the company and its executives made false or misleading statements or failed to disclose material information to investors [1] - The investigation is open to information from investors who may have suffered losses related to Encompass Health [2] Recent Revelations - A New York Times article published on July 15, 2025, reported that Encompass Health accounts for about one in seven rehab 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 [4] - The article also noted that Encompass Health owned 28 of the 87 rehab facilities, with 65 being for-profit, that had worse rates of potentially preventable readmissions to general hospitals during patient stays [4] - Following the publication of this article, Encompass Health's stock price fell by more than 10% [4]

Core Insights - Encompass Health Corporation (EHC) has opened a new 50-bed inpatient rehabilitation hospital in Daytona Beach, FL, marking its 169th hospital nationwide and 23rd in Florida, demonstrating the company's commitment to expanding access to rehabilitation care [1][8] Group 1: Hospital Features and Services - The Daytona Beach hospital provides specialized rehabilitation services for patients recovering from strokes, brain injuries, amputations, and orthopedic challenges, featuring private patient rooms, a therapy courtyard, an in-house dialysis suite, and dedicated areas for various therapies [2][8] - This facility represents a shift towards decentralized, patient-centered care in post-acute medicine, expected to enhance recovery outcomes and alleviate pressure on general hospitals in the area [3] Group 2: Growth Strategy - The new hospital is part of EHC's broader 2025 growth plan, which includes opening seven new hospitals this year and adding 100-120 beds to existing facilities, thereby strengthening its national presence [4] - EHC has announced plans to construct a freestanding inpatient rehabilitation hospital in North Las Vegas, NV, expected to begin operations by 2028 [4] Group 3: Market Performance - Year-to-date, EHC shares have increased by 16.2%, contrasting with a 1.5% decline in the industry [5]

Company Overview - Encompass Health Corp. is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a national footprint of 168 hospitals across 38 states and Puerto Rico [3] - The company provides high-quality rehabilitative care for patients recovering from major injuries or illnesses, utilizing advanced technology and innovative treatments to maximize recovery [3] - Encompass Health has received recognition as one of Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [3] Upcoming Financial Reporting - Encompass Health will report its second-quarter results for the period ended June 30, 2025, after market close on August 4, 2025 [1] - An investor conference call is scheduled for 10 a.m. ET on August 5, 2025, to discuss the financial results [1] Conference Call Access - The conference call can be accessed by dialing 800-343-4849 for domestic callers and 203-518-9848 for international callers, using the conference ID EHCQ225 [2] - Participants are advised to call approximately 10 minutes before the start of the call to ensure connection [2] - A live webcast and an online replay of the conference call will be available on the company's investor website [2]

Core Insights - The Zacks Medical - Outpatient and Home Healthcare industry is experiencing a significant shift towards digital healthcare, driven by rising demand for telemedicine and AI-powered services, particularly due to an aging global population and increasing healthcare costs [1][4][9]. Industry Overview - The industry includes companies providing outpatient care and home healthcare services, utilizing advanced medical technologies for diagnosis and treatment. The sector has shown steady growth post-pandemic, supported by innovation and the shift towards value-based care models [3][6]. - The global home healthcare market was valued at $390.24 billion in 2023, with an expected CAGR of approximately 7.9% from 2024 to 2030 [1]. Major Trends - **Aging Population**: The growing elderly population is a primary driver for home healthcare services, increasing the demand for chronic disease management and rehabilitation [4]. - **Cost Effectiveness**: Outpatient clinics offer cost-effective care, supported by financial incentives from health plans and government programs [5]. - **AI Integration**: AI is enhancing healthcare delivery, with outpatient companies utilizing automated systems for better patient outcomes and efficiency [7]. - **Technological Advancements**: Virtual assistants and chatbots are becoming integral in patient care, aiding in appointment scheduling and medication compliance [8]. Challenges - **Staffing Shortages**: The U.S. healthcare sector faces significant staffing shortages, particularly among home health aides, exacerbated by high burnout rates [10]. - **Tariff Impact**: New U.S. tariffs have increased costs for imported medical supplies, straining home healthcare providers and leading to operational challenges [11]. Market Performance - The industry has outperformed its sector but underperformed compared to the S&P 500, gaining 6.8% over the past year versus the S&P 500's 12.1% gain [14]. - The industry is currently trading at a forward P/E of 19.8X, lower than the S&P 500's 22.3X [18]. Notable Companies - **Quest Diagnostics**: Expected revenue growth of 9.2% for 2025, with a strong return on equity (ROE) of 15.1% [22][23]. - **Encompass Health**: Anticipated revenue growth of 9.5% for 2025, with an ROE of 17.6% [25][26]. - **The Pennant Group**: Projected revenue growth of 23.3% for 2025, with an ROE of 10.7% [29][30]. - **DaVita**: Expected revenue growth of 5.2% for 2025, with a notably high ROE of 176.1% [33][34].

Company Overview - Encompass Health (EHC) is currently outperforming the Medical sector, gaining approximately 30.7% year-to-date, while the sector has lost an average of 4.2% [4] - The company holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Industry Performance - Encompass Health is part of the Medical - Outpatient and Home Healthcare industry, which consists of 17 individual stocks and is currently ranked 37 in the Zacks Industry Rank [6] - The average gain for stocks in this industry is 4.8% year-to-date, highlighting EHC's superior performance within its specific industry [6] Comparative Analysis - Another stock in the Medical sector that has shown strong performance is EUROFINS SCIENT (ERFSF), which is up 32.7% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Medical Services industry, to which EUROFINS SCIENT belongs, is ranked 67 and has experienced a decline of 0.6% year-to-date, contrasting with EHC's performance [6]

Core Points - Encompass Health Corp. plans to build a 50-bed freestanding inpatient rehabilitation hospital in North Las Vegas, Nevada, expected to open by 2028 [1][4] - The hospital will cater to patients recovering from various debilitating conditions, providing specialized nursing care and therapies [2][4] - The facility will include private patient rooms, advanced rehabilitation technologies, and various amenities to enhance patient care [3][4] Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 168 hospitals across 38 states and Puerto Rico [5] - The company is recognized for its high-quality rehabilitative care and has received accolades from Fortune and Forbes for its workplace environment and trustworthiness [5]

Group 1 - Encompass Health (EHC) is a strong performer in the Medical sector, with a year-to-date return of approximately 30.3%, significantly outperforming the sector average loss of 3.5% [4] - The Zacks Rank for Encompass Health is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with earnings estimates having increased by 4.4% in the past quarter [3][4] - The Medical sector consists of 998 individual stocks and currently holds a Zacks Sector Rank of 6, reflecting the average performance of stocks within this sector [2] Group 2 - Encompass Health operates within the Medical - Outpatient and Home Healthcare industry, which includes 17 stocks and has a Zacks Industry Rank of 39, with an average gain of 4.9% this year [6] - Another notable stock in the Medical sector is Elanco Animal Health Incorporated (ELAN), which has achieved a 15% increase year-to-date and has a Zacks Rank of 2 (Buy) [5][6] - Both Encompass Health and Elanco Animal Health are highlighted as stocks to watch for continued solid performance in the Medical sector [7]

Core Viewpoint - Encompass Health Corporation (EHC) is well-positioned for growth by providing high-quality, cost-effective integrated care, achieving a 28.8% increase year-to-date, significantly outperforming the industry average of 2.7% [1] Company Overview - Encompass Health has a market capitalization of $12 billion and operates as an integrated healthcare services company based in Birmingham, AL, with a network of 166 inpatient rehabilitation hospitals across 38 states and Puerto Rico [2] - The company's forward P/E ratio stands at 22.78X, higher than the industry average of 19.62X, reflecting growing investor confidence [2] Financial Performance and Estimates - The Zacks Consensus Estimate for EHC's 2025 earnings is $5.01 per share, indicating a 13.1% year-over-year increase, with eight upward estimate revisions in the past two months [4] - Revenue estimates for 2025 are pegged at $5.9 billion, suggesting a 9.5% year-over-year rise, with the company beating earnings estimates in the past four quarters with an average surprise of 12.3% [4] Growth Drivers - Revenue growth is driven by increased discharges and pricing, with total discharges rising 6.3% year-over-year in Q1 2025 and net patient revenue per discharge growing 3.9% year-over-year, surpassing estimates by 1.6% [5] - The company plans to continue investing in its clinical team and expand its hospital network, including seven new facilities with 340 beds and a 50-bed freestanding satellite hospital in 2025 [6] Financial Stability - EHC's financial stability is supported by a strong liquidity position, holding $95.8 million in cash and cash equivalents as of March 31, 2025, a 12.2% increase from the end of 2024 [7] - Operating cash flows increased by 17.9% year-over-year in 2024 and 20.9% in Q1 2025 [7] - The trailing 12-month return on invested capital is 9.7%, exceeding the industry average of 5.8% [8] Revenue and EPS Guidance - The company has increased its net operating revenue forecast to a range of $5.85 billion to $5.925 billion [8] - Adjusted EPS guidance has been raised to between $4.85 and $5.10 [10]

Group 1: Encompass Health (EHC) - Encompass Health is a provider of integrated healthcare services with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4.4% over the last 60 days [1] - The company has a PEG ratio of 2.42, which is lower than the industry average of 2.53, and possesses a Growth Score of A [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, maintaining and deepening shipping channels [2] - The Zacks Consensus Estimate for its current year earnings has increased by 34.8% over the last 60 days [2] - The company has a PEG ratio of 0.98, significantly lower than the industry average of 1.57, and possesses a Growth Score of A [2] Group 3: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions to various business sizes [3] - The Zacks Consensus Estimate for its current year earnings has increased by 18.4% over the last 60 days [3] - The company has a PEG ratio of 0.38, which is much lower than the industry average of 3.86, and possesses a Growth Score of B [3]

Core Insights - Encompass Health Corporation (EHC) has inaugurated the Rehabilitation Hospital of Fort Myers in partnership with Lee Health, marking a significant expansion in Florida's healthcare landscape [1][5] - The new facility is equipped with 60 beds and offers advanced rehabilitation services, including tailored therapies for patients recovering from various conditions [3][4] - EHC's overall strategy includes increasing its facility count, which has reached 168 hospitals, contributing to a projected revenue growth of 9.6% in 2025 [7] Group 1: Facility and Services - The Rehabilitation Hospital of Fort Myers features modern amenities such as a therapy gym, dialysis unit, and private patient rooms, aimed at enhancing patient recovery [3] - Patients will receive at least three hours of intensive therapy five days a week, along with 24-hour nursing support, which is expected to improve health outcomes in the region [4] Group 2: Strategic Partnerships and Expansion - The partnership with Lee Health is part of EHC's strategy to strengthen its presence in Florida, with the Fort Myers hospital being its 22nd facility in the state [5] - EHC has plans for further expansion, including a new 50-bed rehabilitation hospital in Apollo Beach, FL [5] Group 3: Financial Performance - EHC reported a 10.6% year-over-year revenue increase in Q1 2025, with management estimating operating revenues between $5.85 billion and $5.925 billion for the year [7] - The company's share price has increased by 42.6% over the past year, significantly outperforming the industry average of 5.7% [8]