- Encompass Health Corporation (EHC, Financial) reports robust Q1 2025 earnings, showcasing significant revenue and profit growth.
- Wall Street analysts project a potential upside for EHC stock, making it a compelling investment opportunity.
- GuruFocus analysis suggests caution, indicating the stock may be overvalued relative to its estimated fair value.
Encompass Health Corporation (EHC) recently announced commendable financial results for the first quarter of 2025, with revenue climbing by an impressive 10.6% to reach $1.46 billion. The adjusted EBITDA marked an even more substantial increase of 14.9%, totaling $313.6 million. Looking ahead, the company is set on an expansion trajectory with plans to introduce new hospitals, forecasting an annual revenue for 2025 in the range of $5.85 billion to $5.925 billion.
Wall Street Analysts Forecast
According to projections from 11 Wall Street analysts, the average one-year price target for Encompass Health Corp (EHC, Financial) is $123.09. This target features a high prediction of $140.00 and a low of $110.00. The average estimate suggests a potential upside of 8.57% from the current trading price of $113.37. Investors seeking more detailed forecast data are encouraged to visit the Encompass Health Corp (EHC) Forecast page.
In terms of brokerage recommendations, Encompass Health Corp (EHC, Financial) receives an "Outperform" rating, with an average score of 1.6 based on insights from 12 brokerage firms. The recommendation scale employed ranges from 1 (Strong Buy) to 5 (Sell), indicating positive sentiment toward the stock.
Despite the optimistic forecasts from analysts, GuruFocus provides a more cautious perspective. The estimated GF Value for Encompass Health Corp (EHC, Financial) in one year is projected at $85.57, which points to a potential downside of 24.52% from the current price of $113.37. The GF Value represents GuruFocus' fair value estimation, derived from historical trading multiples, past business growth, and projections of future business performance. For additional details, investors should refer to the Encompass Health Corp (EHC) Summary page.
