Encompass Health (EHC) Soars 12.79% on Strong Q1 Earnings

Encompass Health (EHC) surged to a record high today, with an intraday gain of 12.79%.

Encompass Health's stock price has been on a remarkable upward trajectory, driven by several key factors. Analysts from BofA and Barclays have both raised their price targets for the company, reflecting a bullish outlook. BofA increased its target to $128 from $125, while Barclays boosted its target to $129 from $118, both maintaining positive ratings on the shares.

The company's Q1 2025 financial performance has been particularly impressive. Encompass Health reported revenue growth of 10.6%, attributed to increased discharges and favorable pricing. This growth was accompanied by a 14.9% increase in adjusted EBITDA, demonstrating strong operational efficiency. The company also raised its full-year guidance for 2025, signaling confidence in its future performance.

Encompass Health's earnings and revenue for the quarter ended March 2025 exceeded market expectations, with earnings surprises of 15.13% and revenue surprises of 1.31%. These positive financial results have contributed to the optimistic sentiment surrounding the stock, driving its recent price surge.