- Encompass Health Corp. and Vanderbilt Health recently announced plans to open a 40-bed inpatient rehabilitation hospital in Lebanon, Tennessee, and also unveiled a separate 50-bed hospital project in Fishers, Indiana, both aimed at serving patients with complex recovery needs.
- These expansion efforts further expand Encompass Health's national footprint in specialized inpatient rehabilitation, highlighting strong demand for post-acute care and a continued focus on joint ventures with leading health systems.
- We'll now explore how these new hospital projects may influence Encompass Health's expected growth in underserved and expanding markets.
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Encompass Health Investment Narrative Recap
Being a shareholder in Encompass Health means believing in ongoing demand for inpatient rehabilitation, driven by an aging population and the company's expanded national reach. The recent joint hospital projects in Tennessee and Indiana support long-term growth plans, but they do not meaningfully change the near-term risks of wage inflation or possible labor shortages, which still represent the biggest operational challenge for the business right now.
Of the recent updates, the partnership with Vanderbilt Health to build a new 40-bed hospital in Lebanon, Tennessee, stands out. This announcement closely aligns with Encompass Health's catalyst of expanding services in underserved regions and leveraging strong local partners to increase patient volumes and reimbursement quality.
On the other hand, investors should consider how persistent labor market pressures could limit the benefits of growth if...
Read the full narrative on Encompass Health (it's free!)
Encompass Health's outlook anticipates $7.2 billion in revenue and $711.6 million in earnings by 2028. This reflects an 8.1% annual revenue growth rate and a $189.2 million increase in earnings from the current $522.4 million level.
Uncover how Encompass Health's forecasts yield a $140.33 fair value, a 21% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community opinions assigned a fair value of US$140.33 in both available cases. While the community shares a clear consensus, ongoing labor shortages and wage pressure may shape how the market ultimately prices Encompass Health's future prospects. Discover the full range of insights from a variety of market participants.
Explore 2 other fair value estimates on Encompass Health - why the stock might be worth as much as 21% more than the current price!
Build Your Own Encompass Health Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Encompass Health research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Encompass Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Encompass Health's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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