Encompass Health Corporation (EHC) Stock Analysis
Falling Knife setup
Healthcare · Medical Care Facilities
Wait for pullback to $99.54. Weak momentum; also below 200-day MA (death cross) — blocks BUY_NOW at $100.04. Engine's entry $99.54 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.
Encompass Health is the largest U.S. inpatient rehabilitation hospital operator by patients, revenues, and facility count, operating 173 hospitals in 39 states and Puerto Rico with concentrations in Florida and Texas. 2025 revenues were $5.94B; 92% of patients are admitted via... Read more
Wait for pullback to $99.54. Weak momentum; also below 200-day MA (death cross) — blocks BUY_NOW at $100.04. Engine's entry $99.54 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Earnings in 0 days. Wait until post-earnings. Score 5.7/10, moderate confidence.
Passes 4/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 0d<=7d. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicTexas or Florida10-K Item 1A: 'particularly in areas such as Texas or Florida where we have a concentration of hospitals and other coastal areas susceptible to tropical storms and in western states susceptible to wildfires'
Material Events(8-K, last 90d)
- 2026-03-10Item 1.02MEDIUMEncompass Health terminated its Sixth Amended and Restated Credit Agreement (2022 Credit Agreement, Barclays as agent) on March 9, 2026, paying off all outstanding amounts. Replaced by 2026 Credit Agreement maturing March 2031 with $1B revolving facility on substantially similar terms.SEC filing →
- 2026-02-20Item 5.02LOWCain Hayes (elected to Encompass Health Board January 30, 2026) appointed to Compensation and Human Capital Committee and Compliance and Quality of Care Committee effective February 19, 2026. Routine committee assignment amendment to prior 8-K.SEC filing →
- 2026-02-02Item 5.02LOWCain Hayes elected to Encompass Health Board of Directors on January 30, 2026. Board determined him independent under NYSE standards. No committee assignment made yet. No arrangement or related party interest cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $99.54. Weak momentum; also below 200-day MA (death cross) — blocks BUY_NOW at $100.04. Engine's entry $99.54 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Earnings in 0 days. Wait until post-earnings. Target $124.17 (+24.1%), stop $94.82 (−5.5%), Setup A.R:R 5.7:1. Score 5.7/10, moderate confidence.
Take-profit target: $124.17 (+27.2% upside). Target $124.17 (+24.1%), stop $94.82 (−5.5%), Setup A.R:R 5.7:1. Stop-loss: $94.82.
Encompass Health Corporation trades at a P/E of 18.5 (forward 15.8). TrendMatrix value score: 7.7/10. Verdict: Buy (Wait for Entry).
16 analysts cover EHC with a consensus score of 4.4/5. Average price target: $143.
What does Encompass Health Corporation do?Encompass Health is the largest U.S. inpatient rehabilitation hospital operator by patients, revenues, and facility...
Encompass Health is the largest U.S. inpatient rehabilitation hospital operator by patients, revenues, and facility count, operating 173 hospitals in 39 states and Puerto Rico with concentrations in Florida and Texas. 2025 revenues were $5.94B; 92% of patients are admitted via physician referrals from acute-care hospitals following strokes, hip fractures, and neurological conditions.