Core Points - Encompass Health Corp. plans to build a 50-bed freestanding inpatient rehabilitation hospital in Fishers, Indiana, expected to open in 2027 [1][3] - The new facility will cater to patients recovering from various debilitating conditions, including strokes, brain injuries, and complex orthopedic conditions, providing specialized nursing and therapy services [2][3] - The hospital will feature private patient rooms, advanced rehabilitation technologies, and various amenities to enhance patient care and recovery [3] Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 172 hospitals across 39 states and Puerto Rico [4] - The company is recognized for its high-quality rehabilitative care and has received accolades such as being named America's Most Awarded Leader in Inpatient Rehabilitation [4] - Encompass Health aims to expand its presence in Indiana to meet the growing demand for inpatient rehabilitation services [3][4]

Financial Performance - Net operating revenue increased by 94% to $14775 million in Q3 2025 compared to $13510 million in Q3 2024 [8] - Adjusted EBITDA increased by 114% to $3001 million in Q3 2025 compared to $2693 million in Q3 2024 [8] - Adjusted EPS increased by 194% to $123 in Q3 2025 compared to $103 in Q3 2024 [8] - Adjusted free cash flow decreased by 82% to $1742 million in Q3 2025 compared to $1897 million in Q3 2024 [8] - For the first 9 months of 2025 net operating revenue increased by 106% to $43906 million compared to $39682 million for the same period in 2024 [8] - For the first 9 months of 2025 adjusted EBITDA increased by 145% to $9323 million compared to $8141 million for the same period in 2024 [8] - For the first 9 months of 2025 adjusted EPS increased by 224% to $399 compared to $326 for the same period in 2024 [8] - For the first 9 months of 2025 adjusted free cash flow increased by 165% to $5825 million compared to $4998 million for the same period in 2024 [8] Capacity Additions and Development - The company opened three new hospitals in Q3 2025: a 50-bed de novo hospital in Daytona Beach FL a 40-bed de novo hospital in Danbury CT and a 50-bed satellite hospital in Wildwood FL [10] - The company added 39 beds to existing hospitals in Q3 2025 [10] Guidance - The updated 2025 net operating revenue guidance is $5905 million to $5955 million [22] - The updated 2025 adjusted EBITDA guidance is $1235 million to $1255 million [22] - The updated 2025 adjusted earnings per share guidance is $522 to $537 [22]

Core Insights - Encompass Health Corporation reported strong financial results for Q3 2025, with net operating revenue increasing by 9.4% year-over-year to $1,477.5 million, and adjusted earnings per share rising by 19.4% to $1.23 [2][3] - The company has increased its full-year guidance for 2025, projecting net operating revenue between $5,905 million and $5,955 million, and adjusted EBITDA between $1,235 million and $1,255 million [4] Financial Performance - Net operating revenue for Q3 2025 was $1,477.5 million, compared to $1,351.0 million in Q3 2024, reflecting a $126.5 million increase [2] - Income from continuing operations attributable to Encompass Health per diluted share was $1.24, up from $1.07, marking a 15.9% increase [2] - Adjusted EBITDA for Q3 2025 was $300.1 million, an increase of 11.4% from $269.3 million in Q3 2024 [2] Operational Highlights - The company opened three new hospitals and added 39 beds to existing facilities during the quarter, enhancing its capacity to serve patients [3] - Encompass Health was recognized as "America's Most Awarded Leader in Inpatient Rehabilitation" for the sixth consecutive year, underscoring its commitment to high-quality patient care [3] Guidance Update - The updated full-year guidance for 2025 includes net operating revenue of $5,905 million to $5,955 million, adjusted EBITDA of $1,235 million to $1,255 million, and adjusted earnings per share from continuing operations of $5.22 to $5.37 [4]

Market Overview - U.S. equities reached record highs driven by optimism regarding trade negotiations between Washington and Beijing, with the Dow Jones Industrial Average increasing by 337.47 points (0.71%) to close at 47,544.59, the S&P 500 rising by 1.23% to 6,875.16, and the Nasdaq Composite leading the rally with a 1.86% jump to 23,637.46 [1] Interest Coverage Ratio Importance - The interest coverage ratio is crucial for assessing a company's ability to meet its debt obligations, with a higher ratio indicating better financial health [2][5] - This ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into how many times a company can cover its interest payments from earnings [6][7] Company Analysis - Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and Boot Barn Holdings, Inc. (BOOT) are highlighted for their strong interest coverage ratios, indicating robust financial health [4][11] - Stride has a projected EPS growth of 8.8% and a stock price increase of 67.6% over the past year [14] - Ralph Lauren is projected to have a 21.7% EPS growth and a stock price increase of 65.8% over the past year [15] - Encompass Health is expected to see a 19% EPS growth with a stock price rise of 27.2% over the past year [16] - Boot Barn is projected to achieve a 12.9% EPS growth and a stock price increase of 56.2% 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][12] - Stocks with a strong historical EPS growth and substantial trading volume are also recommended for better investment outcomes [10][12]

Core Viewpoint - Encompass Health Corporation is facing scrutiny due to allegations of misleading business information, leading to a potential class action lawsuit by The Rosen Law Firm on behalf of shareholders [1][2][6] Group 1: Legal and Regulatory Issues - The Rosen Law Firm is investigating potential securities claims against Encompass Health following allegations of misleading business information [1][6] - A New York Times article reported serious incidents of patient harm and below-average safety performance at some of Encompass Health's rehab hospitals, resulting in a 10.3% drop in stock price on the day of publication [1] Group 2: Market Performance and Analyst Opinions - UBS upgraded Encompass Health's stock to a "Buy" on October 2, 2025, raising the price target from $140 to $150, indicating confidence in the company's future performance despite recent controversies [3][6] - Encompass Health's current stock price is $123.23, reflecting a slight decrease of 0.32, or -0.259% [4][6] - The stock has shown volatility over the past year, with a high of $127.86 and a low of $87.85 [4] Group 3: Financial Metrics - Encompass Health's market capitalization is approximately $12.41 billion, with a trading volume of 1,017,291 shares on the NYSE, indicating a significant market presence [5][6]

Core Insights - Encompass Health Corporation (EHC) is recognized as one of the best healthcare stocks to buy and hold for five years [1] Company Overview - Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with over 160 facilities across 38 states and Puerto Rico [2] - The company specializes in intensive rehabilitation for patients recovering from various conditions, offering personalized care plans that include physical, occupational, and speech therapies, along with 24-hour nursing and physician oversight [2] Recent Developments - In September 2025, EHC expanded its operations by opening two new hospitals: the Encompass Health Rehabilitation Hospital of Danbury in Connecticut, a 40-bed facility, and a 50-bed satellite hospital in Sumter County, Florida [3] - These expansions are part of EHC's growth strategy, which includes developing new hospitals and satellite locations to meet rising demand due to an aging population and increasing chronic conditions [4] Financial Performance - For the first half of 2025, EHC reported net operating revenue of $2.91 billion, reflecting an 11.3% year-over-year increase [5] - The company provided full-year revenue guidance of $5.88–$5.98 billion, with occupancy rates improving from 72.1% in 2023 to 77.7% in the first half of 2025, indicating stronger utilization and operational momentum [5]

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]

Core Viewpoint - Encompass Health Corp. and BSA Health System have announced a joint venture to establish a 50-bed inpatient rehabilitation hospital in Amarillo, Texas, aimed at enhancing rehabilitation care in the community [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 169 hospitals across 38 states and Puerto Rico, providing high-quality rehabilitative care [5]. - BSA Health System is the largest healthcare employer in the Texas Panhandle, operating a comprehensive healthcare system that includes a flagship 445-bed hospital and various clinics [7]. Hospital Details - The new hospital will focus on patients recovering from serious conditions such as strokes, brain injuries, and complex orthopedic issues, offering 24-hour nursing care and various therapies [2][3]. - Facilities will include private patient rooms, a therapy gym with advanced technologies, an activities of daily living suite, and an in-house dialysis suite [3]. Strategic Importance - The partnership is expected to enhance acute care capacity in Amarillo and improve the level of rehabilitation care available to the community [4]. - The hospital is projected to open in late 2025 and will be part of Encompass Health's ongoing expansion efforts in Texas [4].

Core Viewpoint - Encompass Health Corp. plans to construct a 50-bed freestanding inpatient rehabilitation hospital in Haslet, Texas, aimed at enhancing its presence in the state and providing high-quality rehabilitative care to patients recovering from serious illnesses and injuries [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a network of 169 hospitals across 38 states and Puerto Rico [5]. - The company is recognized for its high-quality, compassionate rehabilitative care, utilizing advanced technology and innovative treatments to maximize patient recovery [5]. - Encompass Health 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 hospital will cater to patients recovering from conditions such as strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions [2]. - It will provide 24-hour nursing care and various therapies, including physical, occupational, and speech therapies, delivered by specialized healthcare professionals [2]. - Facilities will include private patient rooms, a therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy, and a therapy courtyard [3]. Expansion Plans - The construction of the Haslet hospital is expected to begin soon, with an anticipated opening in 2027, as part of Encompass Health's ongoing expansion strategy in Texas [4].