Why Encompass Health (EHC) is a Top Value Stock for the Long-Term
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.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
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 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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 17.9X for the current fiscal year compared to the Medical - Outpatient and Home Healthcare industry's P/E of 18.4X. Additionally, EHC has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 11.6X. Value investors should also note EHC's Price/Sales ratio of 1.3X.
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 $0.08 to $3.50 per share for 2023. Per share EHC boasts an average earnings surprise of 17.3%.
EHC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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
