Encompass Health (EHC) is a Top-Ranked Growth Stock: Should You Buy?

Zacks
20 Dec 2024

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 This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

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 162 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 is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of B and VGM Score of A. Earnings are expected to grow 17.6% year-over-year for the current fiscal year, with sales growth of 11.2%.

Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.10 to $4.28 per share. EHC also boasts an average earnings surprise of 13.6%.

Encompass Health is also cash rich. The company has generated cash flow growth of 2.9%, and is expected to report cash flow expansion of 21% in 2024.

Investors should take the time to consider EHC for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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Encompass Health Corporation (EHC) : Free Stock Analysis Report

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