Encompass Health Corp Stock Market Value

EHC Stock  USD 82.46  2.13  2.65%   
Encompass Health's market value is the price at which a share of Encompass Health trades on a public exchange. It measures the collective expectations of Encompass Health Corp investors about its performance. Encompass Health is trading at 82.46 as of the 24th of April 2024, a 2.65% increase since the beginning of the trading day. The stock's open price was 80.33.
With this module, you can estimate the performance of a buy and hold strategy of Encompass Health Corp and determine expected loss or profit from investing in Encompass Health over a given investment horizon. Check out Encompass Health Correlation, Encompass Health Volatility and Encompass Health Alpha and Beta module to complement your research on Encompass Health.
Symbol

Encompass Health Corp Price To Book Ratio

Is Encompass Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encompass Health. If investors know Encompass will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encompass Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
0.6
Earnings Share
3.59
Revenue Per Share
48.253
Quarterly Revenue Growth
0.096
The market value of Encompass Health Corp is measured differently than its book value, which is the value of Encompass that is recorded on the company's balance sheet. Investors also form their own opinion of Encompass Health's value that differs from its market value or its book value, called intrinsic value, which is Encompass Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encompass Health's market value can be influenced by many factors that don't directly affect Encompass Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Encompass Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encompass Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encompass Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Encompass Health 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Encompass Health's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Encompass Health.
0.00
03/25/2024
No Change 0.00  0.0 
In 31 days
04/24/2024
0.00
If you would invest  0.00  in Encompass Health on March 25, 2024 and sell it all today you would earn a total of 0.00 from holding Encompass Health Corp or generate 0.0% return on investment in Encompass Health over 30 days. Encompass Health is related to or competes with Acadia Healthcare, and Healthcare Services. Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States More

Encompass Health Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Encompass Health's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Encompass Health Corp upside and downside potential and time the market with a certain degree of confidence.

Encompass Health Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Encompass Health's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Encompass Health's standard deviation. In reality, there are many statistical measures that can use Encompass Health historical prices to predict the future Encompass Health's volatility.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Encompass Health's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
81.1182.4683.81
Details
Intrinsic
Valuation
LowRealHigh
74.2194.1695.51
Details
Naive
Forecast
LowNextHigh
78.2879.6380.98
Details
12 Analysts
Consensus
LowTargetHigh
74.5281.8990.90
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Encompass Health. Your research has to be compared to or analyzed against Encompass Health's peers to derive any actionable benefits. When done correctly, Encompass Health's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Encompass Health Corp.

Encompass Health Corp Backtested Returns

Encompass Health appears to be very steady, given 3 months investment horizon. Encompass Health Corp secures Sharpe Ratio (or Efficiency) of 0.18, which denotes the company had a 0.18% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Encompass Health Corp, which you can use to evaluate the volatility of the firm. Please utilize Encompass Health's Mean Deviation of 0.9764, downside deviation of 0.8715, and Semi Deviation of 0.6469 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Encompass Health holds a performance score of 14. The firm shows a Beta (market volatility) of 1.13, which means a somewhat significant risk relative to the market. Encompass Health returns are very sensitive to returns on the market. As the market goes up or down, Encompass Health is expected to follow. Please check Encompass Health's jensen alpha, maximum drawdown, and the relationship between the coefficient of variation and sortino ratio , to make a quick decision on whether Encompass Health's price patterns will revert.

Auto-correlation

    
  -0.55  

Good reverse predictability

Encompass Health Corp has good reverse predictability. Overlapping area represents the amount of predictability between Encompass Health time series from 25th of March 2024 to 9th of April 2024 and 9th of April 2024 to 24th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Encompass Health Corp price movement. The serial correlation of -0.55 indicates that about 55.0% of current Encompass Health price fluctuation can be explain by its past prices.
Correlation Coefficient-0.55
Spearman Rank Test0.04
Residual Average0.0
Price Variance1.32

Encompass Health Corp lagged returns against current returns

Autocorrelation, which is Encompass Health stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Encompass Health's stock expected returns. We can calculate the autocorrelation of Encompass Health returns to help us make a trade decision. For example, suppose you find that Encompass Health has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
   Current and Lagged Values   
       Timeline  

Encompass Health regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Encompass Health stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Encompass Health stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Encompass Health stock over time.
   Current vs Lagged Prices   
       Timeline  

Encompass Health Lagged Returns

When evaluating Encompass Health's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Encompass Health stock have on its future price. Encompass Health autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Encompass Health autocorrelation shows the relationship between Encompass Health stock current value and its past values and can show if there is a momentum factor associated with investing in Encompass Health Corp.
   Regressed Prices   
       Timeline  

Encompass Health Investors Sentiment

The influence of Encompass Health's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Encompass. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Encompass Health's public news can be used to forecast risks associated with an investment in Encompass. The trend in average sentiment can be used to explain how an investor holding Encompass can time the market purely based on public headlines and social activities around Encompass Health Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Encompass Health's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Encompass Health's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Encompass Health's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Encompass Health.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Encompass Health in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Encompass Health's short interest history, or implied volatility extrapolated from Encompass Health options trading.

Pair Trading with Encompass Health

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Encompass Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Encompass Health will appreciate offsetting losses from the drop in the long position's value.

Moving against Encompass Stock

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The ability to find closely correlated positions to Encompass Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Encompass Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Encompass Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Encompass Health Corp to buy it.
The correlation of Encompass Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Encompass Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Encompass Health Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Encompass Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Encompass Health Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Encompass Health's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Encompass Health Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Encompass Health Corp Stock:
Check out Encompass Health Correlation, Encompass Health Volatility and Encompass Health Alpha and Beta module to complement your research on Encompass Health.
Note that the Encompass Health Corp information on this page should be used as a complementary analysis to other Encompass Health's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Complementary Tools for Encompass Stock analysis

When running Encompass Health's price analysis, check to measure Encompass Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encompass Health is operating at the current time. Most of Encompass Health's value examination focuses on studying past and present price action to predict the probability of Encompass Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encompass Health's price. Additionally, you may evaluate how the addition of Encompass Health to your portfolios can decrease your overall portfolio volatility.
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Encompass Health technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Encompass Health technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Encompass Health trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...