EHC Stock Analysis: Buy, Sell, or Hold?
EHC - Encompass Health Corporation Common Stock
$97.27
-0.30 (-0.31%)
▼
5d:
-0.26%
30d:
-9.84%
90d:
-9.53%
HOLD
MODERATE Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: Apr 23, 2026
23d
Get Alerted When EHC Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 HOLD: EHC shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: EHC shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$154.78
Based on 6.7% avg growth
INTRINSIC VALUE TODAY
$96.11
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: EHC is currently trading at $97.27, which is considered oversold relative to its 30-day fair value range of $98.63 to $107.45. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.1) compared to its historical average (17.3). Remarkably, the market is currently pricing in an annual earnings decline of 4.5% over the next few years. This pessimistic expectation contrasts with the company's recent 21.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, EHC is in a strong downtrend. The price is currently testing key support at $95.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: EHC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $142.73 (+46.3%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, EHC is in a strong downtrend. The price is currently testing key support at $95.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: EHC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $142.73 (+46.3%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$98.63 -
$107.45
Company Quality Score
56/100
(HOLD)
Options IV Signal
50th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
59.6%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Options fairly priced (IV 50th percentile)
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 46.3% below Wall St target ($142.73)
Fair Price Analysis
30-Day Fair Range
$98.63 -
$107.45
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$4.44
(4.6%)
Support & Resistance Levels
Support Level
$95.67
Resistance Level
$103.56
Current Trend
Strong Downtrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.07
Wall Street Target
$142.73
(+46.3%)
Revenue Growth (YoY)
9.9%
Earnings Growth (YoY)
21.2%
Profit Margin
9.5%
Valuation Discount vs History
-4.5% cheaper
PE vs Historical
15.1 vs 17.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.5%
(market-implied from PE analysis)
1-Year Target
$93.18
(-5%)
2-Year Target
$88.99
(-9%)
3-Year Target
$84.98
(-13%)
3-Yr Target (if PE normalizes)
(PE: 15→17)
$97.55
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 9.4%)
$189.68
(+94%)
Base:
(SPY PE: 15.1, Growth: 9.4%)
$127.61
(+31%)
Bear:
(PE: 12.8, Growth: 9.4%)
$108.47
(+11%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (15x PE) as earnings recover.
Trailing PE: 17.27 | Current EPS (TTM): $5.55
Bull Case
$123.01
(+26%)
Analyst growth 16.7%, PE expands to 19.0
Base Case
$111.82
(+15%)
Market implied 16.7%, PE stable at 17.3
Bear Case
$65.18
(-33%)
Severe decline -20.0%, PE contracts to 14.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.1 to 17.3
Stabilization Target:
$112.01
(+14.8%)
PE Expansion Potential:
+14.8%
Share & Embed Analysis
Last updated: March 30, 2026 2:57 PM ET
Data refreshes hourly during market hours. Next update: 3:57 PM
Data refreshes hourly during market hours. Next update: 3:57 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is EHC showing a specific setup today?
Insider Activity (6 Months)
1
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Edmund Fay
SELL
11937 shares
2026-03-09
Mark J Tarr
SELL
150000 shares
2026-02-11
Lisa C. McClain
SELL
2025-10-31
Top Rated Medical Care Facilities Stocks
Top-rated stocks in Medical Care Facilities by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
THC
Tenet Healthcare Corpora… |
STRONG BUY
22 analysts |
$261 | 62 BUY |
|
HCA
HCA Holdings Inc |
BUY
25 analysts |
$543 | 64 BUY |
|
CMPS
Compass Pathways Plc |
STRONG BUY
11 analysts |
$22 | 48 HOLD |
|
ADUS
Addus HomeCare Corporati… |
STRONG BUY
11 analysts |
$140 | 54 HOLD |
|
UHS
Universal Health Service… |
HOLD
19 analysts |
$249 | 61 BUY |
