February 2026 Options for Encompass Health (EHC) Now Accessible
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Should l Buy EHC?
Source: NASDAQ.COM
Put Contract Overview: The $105.00 put contract has a bid of $1.00, allowing investors to buy shares at a cost basis of $104.00, which is a 3% discount from the current price of $108.14. There is a 65% chance the contract may expire worthless, offering a potential 0.95% return on cash commitment.
Call Contract Overview: The $110.00 call contract has a bid of $2.50, enabling investors to sell shares at that price if they buy at $108.14. This could yield a total return of 4.03% if exercised, with a 50% chance of expiring worthless, providing a 2.31% additional return.
Volatility Insights: The implied volatility for the put contract is 28%, while for the call contract it is 27%. The actual trailing twelve-month volatility is calculated at 26%, based on the last 250 trading days.
YieldBoost Concept: Both put and call contracts offer potential YieldBoosts, with the put providing a 5.43% annualized return if it expires worthless, and the call offering a 13.18% annualized return under similar conditions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy EHC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on EHC
Wall Street analysts forecast EHC stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 112.060
Low
134.00
Averages
146.75
High
160.00
Current: 112.060
Low
134.00
Averages
146.75
High
160.00
About EHC
Encompass Health Corporation is an owner and operator of inpatient rehabilitation hospitals in the United States. The Company provides compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and treatments to maximize recovery. It operates hospitals in 38 states and Puerto Rico, with concentrations in Florida and Texas. It operates approximately 166 inpatient rehabilitation hospitals. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver comprehensive patient care services. It provides care to patients who suffer from cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures and a variety of debilitating neurological conditions. Its hospitals have settings for treating the debilitating effects of the COVID-19 virus, such as significant muscle weakness, cognitive impairments, shortness of breath with activity and malnutrition.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enhabit and Encompass Health Reach Settlement of $43.1 Million
- Settlement Amount: Enhabit and Encompass Health have reached a settlement of $43.1 million in the Delaware Court of Chancery, which not only resolves their claims for attorneys' fees and mitigation damages but also reinforces investor confidence in the companies' legal standing.
- Liability Judgment: The court found that former executives committed
See More
Encompass Health Q4 2025 Earnings Call Highlights
- Strong Performance: Encompass Health reported Q4 2025 revenue of $1.5 billion, a 9.9% increase, while adjusted EBITDA rose 15.9% to $335.6 million, demonstrating robust market performance and enhanced profitability.
- Cost Control Success: Despite adding 517 beds, the company reduced premium labor spend by over $21 million from 2024, showcasing effective cost management alongside expansion, which strengthens financial flexibility.
- Optimistic Outlook: Management projects 2026 net operating revenue between $6.365 billion and $6.465 billion, with adjusted EBITDA of $1.34 billion to $1.38 billion, reflecting confidence in future growth and commitment to ongoing investments.
- Strategic Realignment: The company plans to introduce small-format hospitals in 2027, implementing a hub-and-spoke strategy to adapt to market demand changes, further expanding market share and enhancing service capabilities.
See More
S&P 500 Futures Rise in Pre-Market Session; Doximity and Stellantis Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Encompass Health Corp. Performance: Encompass Health Corp. (EHC) saw a 16.6% increase in pre-market trading.
Bloom Energy Corp. Performance: Bloom Energy Corp. (BE) experienced a 12.4% rise in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
Encompass Health Reports Strong Q4 Earnings Exceeding Expectations
- Significant Earnings Growth: Encompass Health reported a net income of $146.30 million for Q4, translating to $1.42 per share, which marks a substantial increase from last year's $120.50 million and $1.18 per share, indicating improved profitability.
- Exceeding Market Expectations: The adjusted net income reached $148.80 million, or $1.46 per share, surpassing analysts' expectations of $1.30 per share, demonstrating the company's success in cost control and operational efficiency.
- Steady Revenue Increase: The company's Q4 revenue rose by 10% to $1.545 billion, up from $1.405 billion last year, reflecting strong market demand and business expansion.
- Optimistic Future Outlook: Encompass Health provided FY26 revenue guidance of $6.365 billion to $6.465 billion and EPS guidance of $5.81 to $6.10, showcasing the company's confidence in future growth and clear strategic planning.
See More
Encompass Health Q4 Earnings Exceed Expectations
- Earnings Beat: Encompass Health reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.16, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved revenues of $1.55 billion in Q4, marking a 6.9% year-over-year increase and surpassing estimates by $10 million, indicating robust demand and competitive positioning in the market.
- Positive Market Reaction: The strong earnings report is likely to drive Encompass Health's stock price upward, attracting more investor interest and potentially enhancing the company's market valuation.
- Optimistic Future Outlook: With ongoing operational optimizations and service expansions, the company is expected to maintain its growth momentum in the coming quarters, strengthening its market position in the healthcare sector.
See More
Encompass Health Reports Strong Q4 2025 Results with Significant Growth
- Significant Revenue Growth: In Q4 2025, Encompass Health reported net operating revenue of $1.5446 billion, a 9.9% increase from Q4 2024, indicating strong performance and sustained demand in the rehabilitation hospital market.
- Earnings Per Share Improvement: Adjusted earnings per share rose from $1.17 in 2024 to $1.46, a 24.8% increase, demonstrating a significant enhancement in profitability that boosts investor confidence.
- Increased Operating Cash Flow: The company generated $346 million in cash flows from operating activities in Q4, a 24.1% increase year-over-year, providing ample funding for future expansion and investments.
- Optimistic 2026 Outlook: Encompass Health projects net operating revenue for 2026 to be between $6.365 billion and $6.465 billion, with adjusted EBITDA expected to range from $1.34 billion to $1.38 billion, reflecting confidence in future growth and rising market demand.
See More
Enhabit and Encompass Health Reach Settlement of $43.1 Million
- Settlement Amount: Enhabit and Encompass Health have reached a settlement of $43.1 million in the Delaware Court of Chancery, which not only resolves their claims for attorneys' fees and mitigation damages but also reinforces investor confidence in the companies' legal standing.
- Liability Judgment: The court found that former executives committed
See More
Encompass Health Q4 2025 Earnings Call Highlights
- Strong Performance: Encompass Health reported Q4 2025 revenue of $1.5 billion, a 9.9% increase, while adjusted EBITDA rose 15.9% to $335.6 million, demonstrating robust market performance and enhanced profitability.
- Cost Control Success: Despite adding 517 beds, the company reduced premium labor spend by over $21 million from 2024, showcasing effective cost management alongside expansion, which strengthens financial flexibility.
- Optimistic Outlook: Management projects 2026 net operating revenue between $6.365 billion and $6.465 billion, with adjusted EBITDA of $1.34 billion to $1.38 billion, reflecting confidence in future growth and commitment to ongoing investments.
- Strategic Realignment: The company plans to introduce small-format hospitals in 2027, implementing a hub-and-spoke strategy to adapt to market demand changes, further expanding market share and enhancing service capabilities.
See More
S&P 500 Futures Rise in Pre-Market Session; Doximity and Stellantis Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Encompass Health Corp. Performance: Encompass Health Corp. (EHC) saw a 16.6% increase in pre-market trading.
Bloom Energy Corp. Performance: Bloom Energy Corp. (BE) experienced a 12.4% rise in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
Encompass Health Reports Strong Q4 Earnings Exceeding Expectations
- Significant Earnings Growth: Encompass Health reported a net income of $146.30 million for Q4, translating to $1.42 per share, which marks a substantial increase from last year's $120.50 million and $1.18 per share, indicating improved profitability.
- Exceeding Market Expectations: The adjusted net income reached $148.80 million, or $1.46 per share, surpassing analysts' expectations of $1.30 per share, demonstrating the company's success in cost control and operational efficiency.
- Steady Revenue Increase: The company's Q4 revenue rose by 10% to $1.545 billion, up from $1.405 billion last year, reflecting strong market demand and business expansion.
- Optimistic Future Outlook: Encompass Health provided FY26 revenue guidance of $6.365 billion to $6.465 billion and EPS guidance of $5.81 to $6.10, showcasing the company's confidence in future growth and clear strategic planning.
See More
Encompass Health Q4 Earnings Exceed Expectations
- Earnings Beat: Encompass Health reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.16, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved revenues of $1.55 billion in Q4, marking a 6.9% year-over-year increase and surpassing estimates by $10 million, indicating robust demand and competitive positioning in the market.
- Positive Market Reaction: The strong earnings report is likely to drive Encompass Health's stock price upward, attracting more investor interest and potentially enhancing the company's market valuation.
- Optimistic Future Outlook: With ongoing operational optimizations and service expansions, the company is expected to maintain its growth momentum in the coming quarters, strengthening its market position in the healthcare sector.
See More
Encompass Health Reports Strong Q4 2025 Results with Significant Growth
- Significant Revenue Growth: In Q4 2025, Encompass Health reported net operating revenue of $1.5446 billion, a 9.9% increase from Q4 2024, indicating strong performance and sustained demand in the rehabilitation hospital market.
- Earnings Per Share Improvement: Adjusted earnings per share rose from $1.17 in 2024 to $1.46, a 24.8% increase, demonstrating a significant enhancement in profitability that boosts investor confidence.
- Increased Operating Cash Flow: The company generated $346 million in cash flows from operating activities in Q4, a 24.1% increase year-over-year, providing ample funding for future expansion and investments.
- Optimistic 2026 Outlook: Encompass Health projects net operating revenue for 2026 to be between $6.365 billion and $6.465 billion, with adjusted EBITDA expected to range from $1.34 billion to $1.38 billion, reflecting confidence in future growth and rising market demand.
See More
