12 Best Healthcare stocks to Buy and Hold for 5 Years

8. Encompass Health Corporation (NYSE:EHC)

Number of Hedge Fund Holders: 49

Encompass Health Corporation (NYSE:EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with over 160 facilities across 38 states and Puerto Rico. The company provides intensive rehabilitation for patients recovering from strokes, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions, offering personalized care plans that combine physical, occupational, and speech therapies with 24-hour nursing and physician oversight.

In September 2025, EHC expanded its footprint with two new hospitals. On September 25, the company opened its first facility in Connecticut, Encompass Health Rehabilitation Hospital of Danbury. The 40-bed, 50,500-square-foot hospital features advanced rehabilitation technologies, private patient rooms, therapy gyms, and in-house dialysis and pharmacy services. Earlier, Encompass Health Corporation (NYSE:EHC) launched a 50-bed satellite hospital in Sumter County, Florida, providing intensive therapy and physician-led care for patients recovering from major injuries and illnesses. These expansions further solidify EHC’s standing among the best healthcare stocks.

These openings align with EHC’s growth strategy, which includes developing de novo hospitals and satellite locations. The business plans to open seven new hospitals and add around 100 beds to existing facilities in 2025, addressing rising demand driven by an aging population and increasing chronic conditions.

Financially, Encompass Health Corporation (NYSE:EHC) reported first-half 2025 net operating revenue of $2.91 billion, up 11.3% year-over-year, with full-year revenue guidance of $5.88–$5.98 billion. Occupancy rates improved from 72.1% in 2023 to 77.7% in the first half of 2025, reflecting stronger utilization and operational momentum across its network.