Encompass Health Corp (NYSE:EHC) shares soared to a 52-week high, reaching a price level of $100.99, signaling a robust performance period for the company. This milestone reflects a significant uptrend in the stock's valuation, underpinned by a remarkable 1-year change of 53.54%. Investors have shown increased confidence in Encompass Health's market position and growth prospects, contributing to the stock's impressive climb over the past year. The achievement of this 52-week high marks a noteworthy event for shareholders and underscores the company's potential for sustained financial health.
In other recent news, Encompass Health Corporation has reported robust Q3 results, surpassing analyst expectations. The company's adjusted earnings per share for Q3 were $1.03, beating the consensus estimate of $0.94. Revenue was also higher than anticipated at $1.35 billion, an increase of 11.9% year-over-year, compared to the projected $1.33 billion. This success was attributed to a 7% increase in same-store discharge growth, a 2.5% rise in pricing, and wage inflation remaining below 4% year-over-year.
Barclays (LON:BARC) upgraded its outlook on Encompass Health, raising the shares target to $116 from $109 while maintaining an Overweight rating. The firm highlighted Encompass Health's third-quarter adjusted EBITDA of $269 million, which surpassed expectations, crediting factors such as robust discharge growth, favorable pricing, and controlled wage inflation for the company's performance.
In addition to these achievements, the company has raised its full-year outlook for 2024. The company now projects an adjusted EPS of $4.19 to $4.33, a rise from its previous forecast of $3.97 to $4.22, and above the $4.19 consensus. The revenue forecast has also been revised to a range of $5.325 billion to $5.375 billion, up from the previously anticipated $5.275 billion to $5.350 billion. These recent developments underscore the company's strong operational standing and financial health.
InvestingPro Insights
Encompass Health Corp's (EHC) recent achievement of a 52-week high is further supported by real-time data from InvestingPro. The company's stock has demonstrated a stellar 1-year price total return of 54.16%, aligning closely with the article's reported 53.54% change. This performance is particularly impressive given that EHC is currently trading at 94.28% of its 52-week high, suggesting there may still be room for growth.
InvestingPro Tips highlight that EHC is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.89 for the last twelve months as of Q2 2024. This indicates that the stock may be undervalued compared to its growth prospects. Additionally, EHC has shown a high return over the last decade, suggesting a track record of long-term value creation for shareholders.
The company's financial health appears robust, with a revenue of $5,070.9 million USD for the last twelve months as of Q2 2024, representing a growth of 10.86%. This solid top-line performance, coupled with a healthy EBITDA margin of 21.16% (calculated from provided data), underscores EHC's operational efficiency and profitability.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Encompass Health Corp, providing deeper insights into the company's financial position and market outlook.
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