Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum 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 166 hospitals across 38 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 Momentum Style Score of B, and has a VGM Score of A. The stock is up 4.3% and up 6.5% over the past one-week and four-week period, respectively, and Encompass Health has gained 26.9% in the last one-year period as well. Additionally, an average of 816,675.81 shares were traded over the last 20 trading sessions.

Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.05 to $4.80 per share. EHC boasts an average earnings surprise of 13.7%.

Investors should take the time to consider EHC for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.

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Encompass Health Corporation (EHC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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