Encompass Health Corporation EHC is continuing to expand its rehabilitation network with plans to build a new 36-bed inpatient rehabilitation hospital in Bridgeport, WV. The freestanding facility will provide specialized care for patients recovering from strokes, spinal cord injuries, brain injuries, amputations, neurological disorders and complex orthopedic conditions.
The project represents an expansion and relocation of the former 19-bed rehabilitation unit at WVU Medicine United Hospital Center, which is now closed. Until the new hospital opens, Encompass Health Rehabilitation Hospital of Morgantown has increased its capacity to serve patients in the region.
The Bridgeport facility fits into Encompass Health’s long-term growth strategy of increasing capacity in markets where demand for rehabilitation services remains strong, strengthening its market share. It already operates 175 hospitals across 39 states and Puerto Rico, making it one of the largest providers of inpatient rehabilitation services in the country.
In 2026, the company expects to open eight new hospitals, adding 389 beds to its network. It also plans to increase capacity at existing facilities by 150 to 200 beds during the year. As of March 31, 2026, Encompass Health had 18 rehabilitation hospitals under development.
During first-quarter 2026 earnings, the company reaffirmed its growth plans for the 2023-2027 period, where it expects to inaugurate six to 10 de novo hospitals each year, as well as make bed additions in the range of 80-120 each year. It also projects discharge growth at a compound annual rate of 6-8% in the same time frame.
Price Performance
Shares of Encompass Health have lost 0.7% in the year-to-date period against the 7.3% growth of the industry.
Zacks Rank and Key Picks
Encompass Health currently has a Zacks Rank #3 (Hold).
Investors can look at some better-ranked stocks in the broader Medical space, like Tenet Healthcare THC,The Pennant Group, Inc. PNTG and Quest Diagnostics Incorporated DGX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line suggests 5.3% year-over-year growth. It witnessed eight upward estimate revisions over the past 30 days against no movement in the opposite direction. Tenet Healthcare beat earnings estimates in each of the last four quarters, with the average surprise being 20.6%.
The Zacks Consensus Estimate for The Pennant Group’s current-year bottom line is pegged at $1.35 per share, which indicates 14.4% growth from a year ago. During the past 30 days, it witnessed one upward estimate revision against none in the opposite direction. The consensus mark for PNTG’s current year revenues predicts a 23.3% year-over-year increase.
The Zacks Consensus Estimate for Quest Diagnostics’ current-year earnings implies 8.6% improvement from the year-ago reported figure. It beat earnings estimates in each of the last four quarters, with an average surprise of 3.5%. The consensus mark for Quest Diagnostics’ current-year revenues indicates a 7.2% year-over-year increase.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
Tenet Healthcare Corporation (THC): Free Stock Analysis Report
Encompass Health Corporation (EHC): Free Stock Analysis Report
The Pennant Group, Inc. (PNTG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).