Encompass Health (EHC) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Encompass Health (EHC)
Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. With a national footprint that includes 161 hospitals across 37 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Encompass Health are trading at a forward earnings multiple of 19.4X, as well as a PEG Ratio of 1.4, a Price/Cash Flow ratio of 11.8X, and a Price/Sales ratio of 1.6X.
Many value investors pay close attention to a company's earnings as well. For EHC, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $3.96 per share for 2024. Per share EHC boasts an average earnings surprise of 20.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EHC to their portfolios.
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Encompass Health Corporation (EHC) : Free Stock Analysis Report
