Earlier this week, Encompass Health confirmed a quarterly cash dividend of US$0.19 per share, payable on January 15, 2026, to shareholders of record as of January 2, 2026, while it also marked the opening of its 25th rehabilitation hospital in Florida.
Meanwhile, fresh legal scrutiny emerged as Rosen Law Firm launched a class action investigation after prior media coverage raised patient safety concerns at the company’s facilities earlier this year.
We’ll examine how renewed attention on regulatory and legal risks could influence Encompass Health’s investment case moving forward.
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To invest in Encompass Health, you need to believe that long-term demand for inpatient rehabilitation will outpace regulatory and cost headwinds, allowing new facilities to drive meaningful growth. The latest legal scrutiny tied to patient safety concerns adds fresh near-term headline risk, but does not materially shift the key catalyst for shareholders: continued expansion and admissions growth, especially as new hospitals open doors in underserved regions.
The opening of the St. Petersburg facility, Encompass Health’s 25th location in Florida, directly addresses the catalyst of meeting surging demand among an aging population. This expansion underscores the company’s efforts to capture incremental patient volumes and differentiate itself through complex care, even as regulatory pressure remains a factor to watch.
Yet, in contrast to this visible growth story, the renewed regulatory scrutiny around patient safety is a risk investors should not overlook…
Read the full narrative on Encompass Health (it’s free!)
Encompass Health’s narrative projects $7.2 billion revenue and $711.6 million earnings by 2028. This requires 8.1% yearly revenue growth and a $189.2 million earnings increase from $522.4 million.
Uncover how Encompass Health’s forecasts yield a $139.08 fair value, a 10% upside to its current price.
EHC Earnings & Revenue Growth as at Oct 2025
Two Simply Wall St Community members each estimate Encompass Health’s fair value at US$139.08, above today’s US$126.13 market price. While some see upside, legal and regulatory risk remains a meaningful factor shaping sentiment and future performance, consider a range of views before you decide.
Explore 2 other fair value estimates on Encompass Health – why the stock might be worth just $139.08!
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