From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry’s return was flat while the S&P 500 climbed by 16.4%.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Let’s dig into the relative performance of Encompass Health (NYSE:EHC) and its peers as we unravel the now-completed Q2 outpatient & specialty care earnings season.
Health care services provider Encompass Health (NYSE:EHC) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 12% year on year to $1.46 billion. The company’s full-year revenue guidance of $5.93 billion at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $1.40 per share was 15.8% above analysts’ consensus estimates.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Encompass Health (NYSE:EHC) and its peers.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
