Here's Why Encompass Health (EHC) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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 158 hospitals across 36 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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - Outpatient and Home Healthcare industry's P/E of 21.3X, shares of Encompass Health are trading at a forward P/E of 21X. EHC also has a PEG Ratio of 1.8, a Price/Cash Flow ratio of 12.4X, and a Price/Sales ratio of 1.4X.
A company's earnings performance is important for value investors as well. For fiscal 2023, three analysts revised their earnings estimate higher in the last 60 days for EHC, while the Zacks Consensus Estimate has increased $0.05 to $3.19 per share. EHC also holds an average earnings surprise of 4.9%.
Investors should take the time to consider EHC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Encompass Health Corporation (EHC) : Free Stock Analysis Report
