On Monday, Encompass Health (EHC), formerly HealthSouth, reached a key technical benchmark, with its Relative Strength (RS) Rating climbing higher in the 80-plus percentile with an improvement to 83. The upgrade comes amid continued expansion for the hospital operator.
Among its latest expansion moves, on March 5 Encompass announced plans to build a 40-bed rehabilitation hospital in Shreveport, La. And on March 18 the company said it will construct a 40-bed hospital in Waco, Texas.
“By delivering a customized and patient-centered approach to care, Encompass Health provides its patients with the therapy, education and confidence they need to maximize their recovery,” Frank Brown, Encompass president, southwest region, said in the news release.
While sales growth for the operator of 130 hospitals in 36 states fell last quarter from 9% to 8%, earnings per share grew 6%, up from 2% in the prior report. Look for the next report on or around April 25. Shares rose more than 1% Monday afternoon, to 61.31.
The company holds the No. 6 rank among its peers in the Medical-Outpatient/Home Care industry group. Amedisys (AMED), LHC Group (LHCG) and Addus Homecare (ADUS) are among the top five highly rated stocks within the group.
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Encompass Health is now considered extended and out of buy range after clearing a 49.81 buy point in a first-stage saucer without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor’s Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price performance over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history shows that the market’s biggest winners tend to have an RS Rating north of 80 as they launch their biggest climbs.
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