Yahoo Finance Encompass Health (EHC) Soars 11.0%: Is Further Upside Left in the Stock?
Encompass Health (EHC) shares ended the last trading session 11% higher at $60.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.
The Centers for Medicare and Medicaid Services’ (“CMS”) suggestion to bring about a 3% rise in inpatient rehabilitation-facility payment rates in fiscal 2024 might have driven the stock higher. The reason can be attributed to the extensive count of 156 rehabilitation hospitals that Encompass Health operates across 37 states and Puerto Rico.
The stock price also witnessed an increase probably due to the Barclays’ analyst move of increasing the target price of the stock.
This rehabilitation hospital operator is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of -27.8%. Revenues are expected to be $1.15 billion, down 14% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Encompass Health, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on EHC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Encompass Health is part of the Zacks Medical - Outpatient and Home Healthcare industry. U.S. Physical Therapy (USPH), another stock in the same industry, closed the last trading session 0.4% lower at $97.68. USPH has returned 2.4% in the past month.
For U.S. Physical Therapy , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of -20% from what the company reported a year ago. U.S. Physical Therapy currently has a Zacks Rank of #4 (Sell).
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
Encompass Health Corporation (EHC) : Free Stock Analysis Report
U.S. Physical Therapy, Inc. (USPH) : Free Stock Analysis Report
