EHC Stock Analysis: Buy, Sell, or Hold?
EHC - Encompass Health Corporation Common Stock
$94.53
-0.05 (-0.05%)
▼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Feb 05, 2026
5d
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:
✅ BUY SIGNAL: EHC trading at deep discount. Market pricing in -3.8% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: EHC trading at deep discount. Market pricing in -3.8% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$145.32
Based on 6.5% avg growth
INTRINSIC VALUE TODAY
$90.23
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 18.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: EHC is currently trading at $94.53, which is considered oversold relative to its 30-day fair value range of $99.54 to $107.47. From a valuation perspective, the stock is trading at a discount (Forward PE: 16.3) compared to its historical average (18.3). Remarkably, the market is currently pricing in an annual earnings decline of 3.8% over the next few years. This pessimistic expectation contrasts with the company's recent 16.7% 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 $93.37. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $140.33 (+48.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, EHC is in a strong downtrend. The price is currently testing key support at $93.37. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $140.33 (+48.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$99.54 -
$107.47
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 48.4% below Wall St target ($140.33)
Fair Price Analysis
30-Day Fair Range
$99.54 -
$107.47
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$93.37
Resistance Level
$102.23
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
16.31
Wall Street Target
$140.33
(+48.4%)
Revenue Growth (YoY)
9.4%
Earnings Growth (YoY)
16.7%
Profit Margin
9.3%
Valuation Discount vs History
-3.8% cheaper
PE vs Historical
16.3 vs 18.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.8%
(market-implied from PE analysis)
1-Year Target
$90.99
(-4%)
2-Year Target
$87.53
(-8%)
3-Year Target
$84.20
(-11%)
3-Yr Target (if PE normalizes)
(PE: 16→18)
$94.50
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 9.0%)
$167.62
(+77%)
Base:
(SPY PE: 16.3, Growth: 9.0%)
$122.57
(+30%)
Bear:
(PE: 13.9, Growth: 9.0%)
$104.19
(+10%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 17.84 | Current EPS (TTM): $5.31
Bull Case
$113.81
(+20%)
Analyst growth 9.2%, PE expands to 19.6
Base Case
$103.46
(+9%)
Market implied 9.2%, PE stable at 17.8
Bear Case
$64.41
(-32%)
Severe decline -20.0%, PE contracts to 15.2
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 16.3 to 18.3
Stabilization Target:
$106.14
(+12.2%)
PE Expansion Potential:
+12.2%
Last updated: January 30, 2026 5:54 PM ET
Data refreshes hourly during market hours. Next update: 6:54 PM
Data refreshes hourly during market hours. Next update: 6:54 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is EHC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Patrick William Tuer
SELL
1020 shares
2025-08-27
Top Rated Medical Care Facilities Stocks
Top-rated stocks in Medical Care Facilities by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
HCA
HCA Holdings Inc |
BUY
25 analysts |
$489 | 63 BUY |
|
THC
Tenet Healthcare Corpora… |
STRONG BUY
22 analysts |
$238 | 54 HOLD |
|
CMPS
Compass Pathways Plc |
STRONG BUY
11 analysts |
$17 | 52 HOLD |
|
CON
Concentra Group Holdings… |
STRONG BUY
8 analysts |
$28 | 62 BUY |
|
ACHC
Acadia Healthcare Compan… |
STRONG BUY
14 analysts |
$19 | 55 HOLD |
Advanced EHC Option Strategies
Professional options setups generated by AI based on today's EHC price and gamma walls.
