Australia markets closed
  • ALL ORDS

    7,771.80
    +43.30 (+0.56%)
     
  • ASX 200

    7,558.10
    +46.50 (+0.62%)
     
  • AUD/USD

    0.6924
    -0.0157 (-2.22%)
     
  • OIL

    73.23
    -2.65 (-3.49%)
     
  • GOLD

    1,865.90
    -50.40 (-2.63%)
     
  • BTC-AUD

    33,856.19
    -202.38 (-0.59%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • AUD/EUR

    0.6411
    -0.0074 (-1.14%)
     
  • AUD/NZD

    1.0935
    +0.0005 (+0.05%)
     
  • NZX 50

    12,197.15
    +44.99 (+0.37%)
     
  • NASDAQ

    12,573.36
    -229.78 (-1.79%)
     
  • FTSE

    7,901.80
    +81.64 (+1.04%)
     
  • Dow Jones

    33,926.01
    -127.93 (-0.38%)
     
  • DAX

    15,476.43
    -32.76 (-0.21%)
     
  • Hang Seng

    21,660.47
    -297.89 (-1.36%)
     
  • NIKKEI 225

    27,509.46
    +107.41 (+0.39%)
     

Encompass Health (EHC) Proposes 50-Bed Hospital in Florida

Encompass Health Corporation EHC recently announced plans to construct an inpatient rehabilitation hospital in Daytona Beach, FL. The hospital will house 50 beds and comprise advanced rehabilitation technologies and equipment.

The latest update reflects EHC’s endeavor to expand rehabilitative care across the Atlantic coast of Florida. This, in turn, is likely to aid patients suffering debilitating illnesses and injuries in the Daytona Beach area. A well-versed medical team comprising highly specialized nurses, therapists and physicians will enable Encompass Health to seamlessly serve the region’s residents.

Encompass Health’s one of the most longstanding endeavors is pretty evident from its recent move of footprint expansion throughout Florida. Presently, EHC has 19 inpatient rehabilitation hospitals across the state. The 19th hospital of Florida in St. Petersburg was inaugurated in September 2022.

EHC further plans to penetrate Florida with seven more hospitals, likely to be built in the next few years.

Encompass Health seems to be on a spree to unveil plans to build hospitals across different U.S. states and subsequently, inaugurate the same within a reasonable timeline. Through these hospitals, the ulterior motive of EHC remains to provide specialized rehabilitative care to patients in close proximity to their homes and delve into the underserved parts of the nation grappling with insufficient access to quality care.

Strong demand for high-quality rehabilitation care requires patients to return to their normal daily activities. This provides an impetus to Encompass Health to ramp up its expansion plans.

Additionally, a swift geographical expansion strategy continues to bolster EHC’s nationwide reach and contributes to revenues of its sole operating segment, Inpatient Rehabilitation. Management anticipates net operating revenues within $4,320-$4,350 million for 2022.

Encompass Health’s current count of inpatient rehabilitation hospitals stands at 153, stretching across 36 states and Puerto Rico.

Shares of Encompass Health have lost 12.4% in a year compared with the industry’s decline of 30.8%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Encompass Health currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Medical space are Medpace Holdings, Inc. MEDP, Merck & Co., Inc. MRK and ShockWave Medical, Inc. SWAV. While Medpace flaunts a Zacks Rank #1 (Strong Buy), Merck and ShockWave Medical carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace’s earnings surpassed estimates in each of the last four quarters, the average beat being 22.04%. The Zacks Consensus Estimate for MEDP’s 2022 earnings suggests an improvement of 44.9%, while the same for revenues indicates growth of 27.1% from the respective year-ago reported figures. The consensus mark for MEDP’s 2022 earnings has moved 13.1% north in the past 30 days.

The bottom line of Merck beat estimates in each of the last four quarters, the average surprise being 16.07%. The Zacks Consensus Estimate for MRK’s 2022 earnings suggests an improvement of 22.6%, while the same for revenues implies growth of 17.9% from the respective year-ago reported figures. The consensus mark for MRK’s 2022 earnings has moved 1.1% north in the past 30 days.

ShockWave Medical’s earnings outpaced estimates in each of the trailing four quarters, the average being 146.10%. The Zacks Consensus Estimate for SWAV’s 2022 earnings is pegged at $2.88 per share. The year-ago reported figure was a loss of 26 cents. The consensus mark for SWAV’s 2022 earnings has moved 12.1% north in the past 30 days.

Shares of Medpace, Merck and ShockWave Medical have gained 3%, 28.7% and 29.1%, respectively, in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Merck & Co., Inc. (MRK) : Free Stock Analysis Report

Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report

Encompass Health Corporation (EHC) : Free Stock Analysis Report

ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research