2. HealthSouth ( HLS) owns and operates inpatient rehabilitation hospitals. It operates in 27 states and in Puerto Rico, through its network of inpatient rehabilitation hospitals, outpatient rehabilitation satellite clinics and home health agencies. For the third quarter of 2011, HLS reported net operating revenue of $497.7, up 8% from the same period in 2010. Adjusted EBITDA stood at $110.5 million, increasing 15.2% and discharge growth at 5.1%. For fiscal year 2011, HLS estimates EBITDA in the range of $450 million to $455 million. Earnings per share are pegged between $1.18 and $1.23 per share. The company has declared regular quarterly dividend of $16.25 per share on its 6.5% Series A Convertible Perpetual Preferred Stock, payable Jan. 17, 2012. Of the 19 analysts covering the stock, 74% recommend a buy and the rest suggest a hold. The stock's average 12-month price target is $25.23, or 42.8% above the current price, according to a Bloomberg consensus.