EHC Stock Gains

Encompass Health (EHC) shares surged after the company reported fourth‑quarter results that beat Wall Street expectations and issued 2026 earnings and revenue guidance above prior analyst forecasts. The stock has posted a 1‑year total shareholder return of 6.21%, a 3‑year return of 75.81%, and a 5‑year return of 69.80%. In the short term, share price rose 5.86% on day one and 11.49% over seven days, while the 90‑day return was 8.57%. Analysts view EHC as undervalued with a fair‑value estimate of $140.33, citing high unmet demand for its core services driven by a rising 65+ population and persistent undersupply of inpatient rehabilitation beds. Risks highlighted include labor shortages and significant capital outlays for new hospitals, which could compress wages, margins, and returns if patient volumes or reimbursement levels fail to meet current expectations.