Stock in Focus: Encompass Health Corporation (EHC)

Company Profile:

Encompass Health offers both facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that includes 133 hospitals, 245 home health locations, and 82 hospice locations in 37 states and Puerto Rico, the Company is committed to delivering high-quality, cost-effective, integrated care across the healthcare continuum. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.

Recent News:

The company will report results for its fourth quarter ended Dec. 31, 2019, after the market closes on Feb. 6, 2020. The Company will host an investor conference call at 9 a.m. ET on Feb. 7, 2020, to discuss its results.

On Jan. 8, 2020, Encompass Health Corp. and San Angelo, Texas-based Shannon Health announced plans to form a joint venture for a new, 40-bed, freestanding inpatient rehabilitation hospital in San Angelo, Texas.

The company posted revenues of $1.16 billion and earnings of $0.93 per share for the quarter ended September 2019, surpassing the Zacks Consensus Estimate.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EHC’s strengths can be seen in its better growth, strong profitability and robust efficiency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 60.76 with positive bias. We rate Encompass Health Corporation (EHC) a STRONG BUY.